Central Advisory Council

Recently, the central government of India has made a crucial amendment in the CAC (Central Advisory Council) and according to new amendment real estate agents will be the part of Central Advisory Council, which is involve in helping the government to understand the issues related to the Indian real estate sector.

This new amendment has made the property brokers or real estate agents, a key stakeholder with homebuyers and builders in the real estate industry. However; in a separate development government is pertaining the same bill in the Rajya Sabha Select Committee, with an aim to add the functions of the REAA (Real Estate Regulatory Authority), which will be formed under the new proposed Bill and it will also include the protection of interest of allottees, promoters and agents. It is proposed to form a council under the aegis of the amended in the Real Estate Bill, whereas; the Minister of Housing & Urban Poverty Alleviation will be act as the ex-official chairman of the same body. The new group will provide active advice to the central government on different facts such as; protection of consumer interest, implementation of the Act,, recommend policy and foster development as well as growth in the real estate sector.

However; officials are expecting that soon new council will come in existence and it will act as the main mover in for starting the debates on critical facts and figures of the Indian real estate industry. According to the statement of the Sanjay Bhargava, Founder of realty advisory company Bombay Homes, “After including the real estate agents, central government will get the better understanding on many of the issues which are related to the satisfaction and transactions in the real estate sector because agents are the persons who directly interact with customers in comparison of real estate builders or any other official authority”. Apart from that real estate agents are happy with new amendment because now onwards they can highlight the key issues on which government can work. However; many different broker bodies are suggesting to set-up the registration format and minimum criteria for property brokers where they need to have minimum educational qualification, if they want to raise their voice and concern for the real estate sector.

However; the Real Estate (Regulation and Development) Bill, 2013 is seeking to establish the RERAs (Real Estate Regulatory Authorities), at the state level so that every state can regulate the development of real estate sector in country. The main aim of RERAs is to make sure that there is consumer protection and standardization in the business practice of real estate sector of the country.

Image credits : DNA India

The Maharashtra government is planning to regulate the real estate market of the state and for this soon they will appoint a regulatory body to save the interest of the home buyers as Central Government has gave the nod to state government to frame rules and regulation to implement the Housing Regulatory Bill approved by the President and passed by the legislature. However; we are know that in 2012 The Maharashtra Housing (Regulation and development) was passed, but after that the Presidential assent came in effect in 2014.

The process of framing the rules and regulation is in the progress and there I little delay in that because Central Government had framed s similar law know as the “Real Estate” Regulation and Development Bill) for each and every state with a motive that each and every state will adopt it. But the Central government’s bill is still pending in Rajya Sabha. State Government stated that we have explained to the Centre that Mumbai’s real estate market needs are different from the rest of the country and due to that there is need for housing regulator and the provisions which we have is better than the proposals of the central law. According to Shrikant Singh, who is Principal Secretary Housing department, “Our Submission has been accepted and we are planning to implement our own housing regulator. The more he added that we have god the final approval from central to set up our new regulatory authority for Maharashtra. Currently we are in the process of rules and regulation formation after which our authority will come into existence.

The real estate regulatory authority of Maharashtra will be a quasi-judicial body which will be able to resolve the disputes that are related to the housing sector. Apart from that the previous Congress-NCP government has proposed the real estate law to ensure home buyers interests are in the safe hands. Apart from that Centre has brought a similar legislation in Parliament and they have asked the Government of Maharashtra to hold back implementation of their own law in the real estate sector. But, the draft bill of centre has gone into the Rajya Sabha’s parliamentary committee and hence the state is planning to go ahead with its own regulatory authority bill. According to Singh our consultations are on the way and our law, judiciary and finance departments are framing the rules to setup the regulator. However; he declined any comment that when they are completing the framing the process.