Real estate bill is against consumer interest

Imost is common builders knowledge blatantly that engage in various malpractices-be it delay in construction, use of substandard materials, deviation from sanctioned plans, failure to obtain the occupation certificate, avoiding the formation of a co-operative society, illegal sale of parking and other open areas, misappropriation of advance monies taken for maintenance etc. Flat purchasers are always at the receiving end, with builders flouting the provisions of the Maharashtra Ownership Flats Act. The only viable, time-tested and effective remedy available to a flat purchaser to fight the might of the builder was through the redressal mechanism provided under the Consumer Protection Act. Will consumers get better protection with the introduction of the real estate (regulation & development) bill by the ministry of housing and urban poverty alleviation? Though this new legislation appears to project a rosy picture, an analysis of the various provisions will show that in reality it will be beneficial to builders at the cost of the flat purchasers. The negative aspects Under Section 2 (c) of the new law, by a legal fiction, opens spaces are included under the definition of "apartment". Once the bill is passed, builders will be legally entitled to sell the open spaces (like parking space, terrace and private garden) for independent and private use. At present, as per the interpretation of law by the Supreme Court, sale of open spaces by a builder is illegal, as the land and other open spaces would belong to the society. The new law will help builders overcome this well reasoned judgment and profiteer by selling the open spaces. Section 3 of the bill provides that a builder must compulsorily be registered with the real estate regulatory authority for plots measuring 4000 sq. metres or more. Most of the buildings are constructed on smaller plots. Hence this provision will not be applicable to most builders. Section 18 of the bill provides for establishment of the real estate regulatory authority comprising of one chairperson and two members. There law does not mandate the appointment of any judicial officer on the authority. So, given the way our country functions, the appointments may be made to favour persons with the "right connections". The composition of the authority and its strength of three members will be inadequate to cope with the construction and development projects being carried out throughout the country. Also, it would be difficult for the common man to approach a remote centralized authority. Similarly, the real estate appellate tribunal comprising nine members, to be constituted under section 35, will be unable to set up Benches throughout the country to deal with disputes. Accessibility to the redressal mechanism will become more difficult and costly.

source: http://economictimes.indiatimes.com/markets/real-estate/realty-trends/real-estate-bill-is-against-consumer-interest/articleshow/11251948.cms