PUNE: The developers and builders community has welcome the proposed legislation that intends to regulate real estate deals by making it mandatory to post critical details of the projects on the official internet site of the real estate regulator.

Realty sector players have, however, expressed concerns over the possibility of this measure opening another door for corruption and bureaucratic interference in their work as well as effective implementation of the provisions of the legislation to benefit the consumer.

According to Satish Magar, president, Confederation of Real Estate Developers Associations of India (Credai), Pune, there was a need to introduce regulations that will protect customers from errant builders. "This bill will protect the consumers against fly-by-night operators who are out to make a quick buck without giving much thought to consumer interests. Our association is a body of professional builders/developers who are already governed by a self-imposed code of conduct and we are happy to learn that the government plans to widen the gamut to include builders as well as one time constructors."

The law to regulate real estate developers will call on builders to provide details of the number and size of plots, layout plan, carpet area and plinth area of flats, apartments or any other housing complexes. Importantly, it will prevent builders from changing the plans or inserting charges as the sale agreement will be considered binding.

Magar added that the bill should be more holistic in its approach. "It is important to note that there may be delays that take place on account of changing rules and regulations, ad-hoc procedural changes that builders have no control over. The regulation must also encompass the approving authorities involved in the development process so that all parties responsible directly or indirectly are covered. This will give greater protection to the consumer.'

Kaustuv Roy, executive director at the real estate research and consultancy firm Cushman and Wakefield, told TOI that though the regulatory provisions are beneficial , their effective implementation as in case of many other regulatory norms is what will be important. "A very strict follow up would be necessary as some approvals and clearances are prior to construction and some post-construction. Also, each civic body has different norms and rules. What makes the implementation more complex is that real estate is a state subject," he pointed out. Roy said this will be a good opportunity to educate the consumers about their rights and what to ensure when entering into a property deal. This aspect can be handled by the regulatory body as well as consumer organisations, he observed.

Aniruddha Deshpande, managing director, City Corporation Ltd said creation of such a watchdog body in other infrastructure areas like power, telecom, gas or insurance has made the difference to the customer. Real estate being a big ticket, once-in-a-lifetime purchase for most, the security the regulator would bring to the average citizen will in a way boost the housing sector.