The Lok Sabha on Tuesday passed the Real Estate (Regulation & Development) Bill, 2016, which was already passed by the Rajya Sabha on March 10. And that means the prices of the houses could get cheaper, and the property developers will have to adhere to the promises they make to the buyers. In other words, the real estate sector will gain more credibility. 

In his reply to the discussion on the Bill in the Lok Sabha, Urban Development Minister M Venkaiah Naidu said: "It is a historic moment for the country as we are fulfilling the aspirations of the people who wish to own a house, giving them the needed protection. The Bill will be giving credibility to real estate sector also". 

"I say you will get more investment, you will get early clearances and the property prices will come down,” the minister said, asserting the speedy land clearances for the real estate projects will help in bringing down the prices of the houses. 

"The builders will have to do their duty. Parliament is not interested in interfering with their activity. What you (builders) are committing, what you are promising, fulfill that. This is the only purpose of this Real Estate Bill,” Naidu said. 

He stressed the Bill would help to fill in the loopholes in the existing system that help builders to escape from the ambit of law without fulfilling all the claims they make in their advertisements. 

"Earlier, the rate of interest payable by consumer and builders used to vary. We found it was not correct. So from here on, the interest payable by either party, be it the consumer or builder, will be the same," the minister said.

Naidu also said that he is open to discuss it with the builders if they have any issue with Bill that may hamper the sector’s functioning. 

"We are not against builders. If there are problem with the builders, I am ready to discuss it with them anytime. We want builder to be partner in building a strong India,” he said.

"Since land is a state issue, we seek cooperation from state’s side. All approvals are to be given in 30 days,” he said, insisting the Central government has done its duty in providing inexpensive houses.

The minister said that he will write to all the chief ministers requesting them to give speedy clearances to the real estate projects in their states.