LS passes Real Estate Regulation and Development Bill

New Delhi: The Lok Sabha on Tuesday passed the Real Estate Regulation and Development Bill.

The Bill regulates transactions between buyers and promoters of residential and commercial real estate projects.

It establishes state-level regulatory authorities called Real Estate Regulatory Authorities (RERAs). The promoters will have to register all projects above a certain size with the RERAs.

During the debate, the members raised their concerns about the provision of the Bill mandating 70 percent of the amount collected from buyers of a project to be used only for construction of that project.

The members also raised their concerns about other related issues with the sector such as streamlining the procedures of approval and black money.

The much-awaited Real Estate (Regulation and Development) Bill was passed by the Rajya Sabha on March 10.

The Bill, which aims at protecting the interest of the buyers and bring in transparency to the system, has been waiting in the wings for nearly 10 years. (ANI)