Does Attempt To Regulate The Real Estate Sector Help

The intention of the Real Estate (Regulation and Development) Bill 2016 (Real Estate Bill) is honest but its execution may lead to faulty results. To have a successful venture it should benefit all stake holders. It is true that the unit purchasers (i.e. purchasers of premises) would, apparently,not have to take approval risk andprobably will receivetimely delivery and, most importantly, will have the assurance that the money that they invest in a real estate project will beused in the project itself, but there is a possibility that these may have a counter-productive effect. The concept of depositing 70% of the realisation received from the unit purchasers to be kept in a separate account and to be withdrawn in a particular mannerafter certification from an engineer, chartered accountant and architect in practice would lead to expensive capital being used for the real estate project as a result of which the lenders before lending to the promoters for purchase of