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How Real Estate Regulatory Bill can help ailing Real Estate sector

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Real Estate
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Construction and Real Estate sectors have a bad name today, due to many unethical builders, brokers, extortionists, and land mafia, who have controlled the sector for a long time now.

NewsGram had previously covered one such instance of alleged extortion and unnecessary delay in handing over the flats to the customers in Mumbai by Runwal Greens.

The Real Estate Regulatory Bill, which has been pending for a long time, if passed, may go a long way in tackling various issues that ails this sector. Here is an article by Anil Pharande, Chairman of Pharande Spaces, a leading construction and development firm in Western Pune, explaining why the Bill is very crucial for cleaning up the Real Estate sector.

The Real Estate Regulatory Bill has been waiting for a long time to be passed as a law. Though several new recommendations by various bodies were incorporated into the draft Bill and approved by the cabinet, it has still not been passed as an enforceable law by the Parliament. It is now high time that this happens – for several reasons.

The changes which have been made in the original draft over time are quite progressive. For instance, a real estate developer must keep a minimum balance of 50% of the funds collected for his project in an escrow account. Before the Real Estate Regulatory Bill was drafted, the concept of creating an escrow account for a real estate project in which to hold funds for a project did not exist at all. In the absence of such a regulation, builders are at liberty to siphon off funds collected for their projects and use them to purchase more land or in the construction of other projects.

The Real Estate Regulatory Bill will make it compulsory for builders to ensure that at least 50% of such funds will remain reserved solely for the development of the project for which they were collected from buyers. To ensure that this actually happens, they will have to pay these funds into an escrow account within 15 days. While this is definitely a rule which will protect the interests of property buyers to some extent, it still means that builders can use half of the funds collected from buyers for other purposes.

This gives rise to a pertinent question – why would they want to do that? Isn’t it in the builder’s own interest to complete a project on time? Unfortunately, many developers don’t look at it that way at all. The reason why they divert funds from ongoing projects is so that they can purchase land to build land banks, which allows them to showcase more projects on their balance sheets. Doing so makes allows them to raise more capital from banks or private equity funds, and also to give an inflated image of the size of their business.

There have been several other changes to the draft Real Estate Regulatory Bill, as well – each giving a clear message that the era in which developers could do whatever they want is going to be history once it is implemented. Not least among these important changes is that developers will have to register all projects which they are constructing within 3 months once the Bill becomes a law. If they fail to do so, they will be penalized to the tune of 10% of the overall project cost, and will have to bear an additional penalty of 10% and even face a prison term for any further delay to register their project.

The Real Estate regulatory Bill will also bring an end to developers’ freedom to make changes in the original plans or structural designs of their projects once they have been registered. They will only be able to make any changes if they are able to get the signed approval of at least 2/3rds of those who have invested into the project. Projects which do not have completion certificates issued as yet are now also included, meaning that an even bigger segment of buyers will benefit from the protection of their interests.

The current version of the Real Estate Regulatory Bill also has another noteworthy amendment in the fact that it now includes commercial office projects. In other words, investors who have plugged their funds into commercial office properties will also be protected by the Bill. Of course, the fact is that 85% of the Indian real estate market consists of the residential sector. However, this amendment is important because it will help the sector become more transparent in every respect, and not just in some segments. Real estate brokers and agents are now also included in the latest draft of the Bill, which means that will also be liable for legal action if they engage in any practices which are not in line with the new law.

Finally, the latest draft of the Real Estate Regulatory Bill permits customers with grievances to move the consumer courts, and does not position itself as their only legal recourse.

With all these positive amendments now in place, the Real Estate regulatory Bill is indeed a powerful means to make the chronically opaque Indian real estate sector more transparent. Once it becomes a law, people will feel more confident in investing into real estate, and this will result in the revival which everyone has been waiting for. This confidence will take time to become evident, but it will definitely come – and when it does, we will see massive changes on the ground.

Also Read: Runwal Greens: Luxury builders or unethical extortionists?

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5 Ways Technology is Changing the Construction Industry

It’s hard to go anywhere these days without seeing some kind of construction happening

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construction, Industry, technology, advancements
Technology is helping out in a number of ways, by combatting the shortage while improving worker safety. Pixabay

It’s hard to go anywhere these days without seeing some kind of construction happening. It
might be in your neighbourhood as your neighbors add on to their house or it could be the reason you’re stuck in traffic every day as they continuously work on the interstate.

Construction is an industry that will always likely be there. Even though it is currently facing a worker’s shortage, you’re likely to still see plenty of places with an “under construction” sign pop up.

In addition to seeming like it’s ubiquitous, the construction industry is also undergoing rapid changes thanks to technology. Technology is helping out in a number of ways, by combatting the shortage while improving worker safety. Hammer and nails are still in style but there are plenty of other ways this age-old industry is getting a facelift.

Drones

The first time you ever saw someone operating a drone was probably pretty interesting. Now, they may have become a nuisance in your neighborhood, flying over fences and causing a constant buzzing noise that just won’t go away.

If you live close to a construction area, then you’re probably used to all the constant noise so you won’t notice any drones hovering over the top.

In the past, helicopters were needed in order to obtain a bird’s eye view of a construction site. Construction managers or architects would need to hover over a property to ensure everything was going to plan.

In addition, drones are used to scope out property that is unaccessible. If someone is buying a huge plot of land, it’s easier to fly a drone over than spend hours wandering through.

construction, Industry, technology, advancements
Construction managers or architects would need to hover over a property to ensure everything
was going to plan. Pixabay

Robotics

The rise of robotics in construction is a combination between the worker shortage and and
advancing technology. Every year, robots become more intelligent, more precise, and safer
options for some construction jobs.

Robotics aren’t in high demand or use quite yet, but they’re the biggest trend to watch out for. You might be surprised to learn that the biggest robotic contributors at the moment are 3D- printing robots. These robots can print out certain materials or prefabricated parts.

This helps eliminate the need to transport some materials, turning the site into a more efficient workplace. You’ll still need to transport large materials and of course, the robot itself.

Wearable Technology

Consumers nowadays have access to watches that can track their sleep patterns and heart
rate, in addition to other instruments that can easily monitor plenty of vital signs. Those
technologies are also making strides in construction.

It’s no secret that construction is a physically demanding job and it’s important to monitor signs in order to promote the utmost safety at a site. This technology can tell construction managers and workers alike when it’s time to take a break or stop working for awhile.

Geotracking is also huge, as it can track exactly what a worker is doing. If a worker were to fall, the device would send alerts out and help could be better administered.

New and Better Materials

It might be surprising to learn that even though everything around us seems to be built with brick, mortar, wood, and concrete, construction experts are looking at improving those materials for the future.

This push for new and better materials comes from the green initiative, looking to reduce waste by repurposing materials into new ones. Waste plastic can be made into roadways or even used as material for our 3D printing robot friends.

construction, Industry, technology, advancements
Waste plastic can be made into roadways or even used
as material for our 3D printing robot friends. Pixabay

Self-heating concrete is another material making strides. While it’s not going to replace your seat warmer, it will help prevent concrete from cracking and breaking earlier.

Virtual and Augmented Reality

Virtual reality is becoming more and more popular across a number of different sectors and
construction is right up there. Augmented reality allows plans to be laid out in real time,
providing a digital overlay of what’s in the real-world. It will make you feel just like The
Terminator in some cases.

ALSO READ: Positive Social Relationships Help Increase Self-Esteem

Virtual reality is being used for training and safety measures. Instead of doing training onsite, virtual reality can be used ahead of time to better prepare workers for the dangers of a certain area. This helps save time and money, letting people take care of this before arriving to work.