Earth Infrastructures ltd optimistic about new real estate bill
Real estate bill which is expected to get passed in this winter session of parliament has good news for home buyers. The bill is expected to clear out the unreliable operators and punish the party at default. It is expected to propose the jail term of up to three years if the defaulter is found at fault once again.
Additional safeguards have been built as per the new bill to standardize all kinds of transactions between builders and home buyers. The safeguards will ensure the safety of the entire process of home project from its registration to possession.
The real estate bill has gone through requisite amendments after being passed by the Cabinet. According to a national newspaper, the ministry of housing and urban poverty alleviation has accepted all the recommendations made by team of 21 members of Rajya Sabha.
Rajeev Chandrashekhar who is the panel member and Bengaluru Member of Parliament said, “The agreement will ensure that the until-now measly interest rates paid by defaulting builders should be brought on par with the interest rates that buyers, who default on their payments, are required to shell out”.
The bill also has certain recommendations to be considered before going further. These include stopping the developers from deflecting more than 50 percent of money collected from home buyers for other projects. The state government has the leverage to increase the limit more than 50 percent, if the need be. This provision will put liquidity starved builders in a bind as they are already striving because of gradually slowing down sales along with increasing inventory which has not been sold.
Construction cost is expected to be 5 to 10 percent less as per the cost of acquisition of land in mega cities like Delhi, Mumbai and Bengaluru. Real estate developers like Earth Infrastructures ltd are in full support of this new bill which will eradicate those opportunity seekers whose primary goal is to loot the money from interested home buyers for the sake of their own profits.
ABOUT EARTH INFRASTRUCTURES
Founded on Earth Day April 22nd 2010 with a vision to become the most innovative and trusted brand in real estate sector by adopting state-of-the-art technologies, global trends and continuous innovation with a dedicated focus to deliver at par with best trends around the globe, Earth Group of Companies today stands tall as one of the fastest emerging key players in the Indian real estate landscape with 50+ offices across the country, 1500+ employees, 15000+ satisfied customers, and 20 million+ sq. ft. space under construction.