Assocham seeks review of real estate sector regulatory bill

The Associated Chambers of Commerce and Industry of India (Assocham) has called upon the government to review the Real Estate Regulatory Bill since most of its provisions are inimical to real estate industry and other stakeholders.

Assocham, however, said there is an urgent need for appointing a regulator so that redressal of consumer grievances is expedited.

"There is a need for an efficient and focused regulatory body to overlook functioning of the real estate sector in order to insure the industry development and safeguard of consumer interests in line with international benchmark," the chamber said.

The setting up of a regulator for the real estate sector would ensure that consumers' grievances against all stakeholders, including developers, local authorities, real estate agents and financial institutions, are addressed in time, Assocham said.

Besides, the chamber has suggested that the government make the opening of an escrow account mandatory for real estate players for ensuring transparency in real estate transactions, including purchase of real estate units and honouring property charges, insurance liabilities and maintenance charges on a regular basis.

"Contrary to expectations, the draft bill does not allow the real estate regulator to act as an impartial arbitrator between industry/developer and various government agencies on the one hand and the industry/ developer and consumers on the other," Assocham said.