In a welfare state, Government in order to provide shield to its citizens against frauds and cheating by unscrupulous people and organizations regulate the operations which involve masses set up regulatory authorities which regulate a particular operation. Presently India has Reserve Bank of India regulating monetary and banking operations, Telecom Regulatory Authority of India regulating Telecom and DTH operations, Insurance Regulatory and Development Authority controlling Insurance sector of the country to name a few. Like previously mentioned sectors Real Estate or Realty sector involves masses as housing is one of the primary needs of a human being and accordingly a lot of people spend their hard earned money to fulfill the dream to own at least one house during their lifetime.

Rajya Sabha , the upper house of the Parliament recently gave its approval to a bill which is meant to create a regulatory authority of Real State sector which is unregulated. The bill has received consent from Lok Sabha too. This unregulated regime brought a bad name to sector and many fly by night operators were in fray only to deceit poor consumer who invested their hard-earned savings simply to realise the dream of own house. This bill when converted into an act will though bring in plethora of reliefs to consumer, will also benefit not only the builders but Real estate sector too where fraudulent  will be weeded. Below we shall brief the salient features of the bill:

• Real estate sector will get a regulator who will ensure a healthy, patterned and specific growth to the sector. The consumer and builders can seek redressal from the regulator.
• All commercial and residential real estate projects built over more than 500 sq. mtrs. or eight apartments will mandatorily register themselves with regulator before initiating the project. Project marketing and execution will have less or almost nil opacity.  Failure to adhere to this mandatory provision can attract a levy of 10% of project cost or a jail term on repetition of this offence.
• A sum equivalent to 70% of amount collected from a buyer is to be deposited in a separate account by the promoter to meet the construction cost requirements. This will safeguard consumer’s interest as the developer will not be able to divert the deposit in another project and ensure timely completion of project.
• This bill is likely to boost activities in this sector which has seen a long lean period. The regularization of the sector will enthuse confidence for the sector among the consumers who will put in more money in the sector and stabilization of prices.
• The bill ensures strict adherence to the specifications regarding dimensions and time limit  given by the developer during booking of the project. Failure to stick to the specification will be severely detrimental to the erring developer.
• With the passage of this bill Carpet Area of an apartment has been clearly defined where usable spaces as kitchen and toilets have been included
• The liability of developer regarding repairs to structural errors has been escalated to 5 years from earlier 2 years. Regulator estate tribunals and regulators have to mandatorily dispose of the complaints within 60 days.

Though this bill is more consumer oriented and tilted against builders but an initiative taken
to regulate a business is beneficial both for operator and beneficiary where at least a set of norms for regulation of a business has been taken.