Current Affairs > Daily Current affairs

Back
My notes 10-12-2015

 

Real estate regulation

It will boost domestic and foreign investment in the real estate sector and help achieve the objective of Government of India to provide Housing for All by enhanced private participation."

 

The salient features of the Bill are as under:

1. Applicable both for commercial and residential real estate projects.

2. Establishment of ‘Real Estate Regulatory Authority’ in States/UTs to regulate real estate transactions.

3. Registration of real estate projects and real estate agents with the Authority.

4. Mandatory disclosure of all registered projects, including details of the promoter, project, layout plan, land status, approvals, agreements along with details of real estate agents, contractors, architect, structural engineer etc.

5. Deposit of specified amount in a separate bank account to cover the construction cost of the project for timely completion of the project.

6. Establishment of fast track dispute resolution mechanisms for settlement of disputes through adjudicating officers and Appellate Tribunal.

7. Civil courts jurisdiction prohibited from taking up matters defined in Bill, however, consumer court allowed to hear real estate matters.

8. Promoters barred from changing plans and design without consent of consumers.

9. Provision of Appropriate Government to make rules for the matters specified in the Bill, and the Regulatory Authority to make necessary regulations.

 

  • One may question Parliament’s jurisdiction to make laws related to real estate as “land” is in the State List of the Constitution.  However, it may be argued that the primary aim of this Bill is to regulate contracts and transfer of property, both of which are in the Concurrent List.
  • Some states have enacted laws to regulate real estate projects.  The Bill differs from these state laws on several grounds.  It will override the provisions of these state laws in case of any inconsistencies.
  • The Bill mandates that 70% of the amount collected from buyers of a project be used only for construction of that project.  In certain cases, the cost of construction could be less than 70% and the cost of land more than 30% of the total amount collected.  This implies that part of the funds collected could remain unutilized, necessitating some financing from other sources.  This could raise the project cost.
  • The Standing Committee examining the Bill has made several recommendations.  These include: (a) the Bill should also regulate commercial real estate, (b) smaller projects should also be covered, and (c) all real estate agents must be required to register. 
  • The real estate sector has some other issues such as a lengthy process for project approvals, lack of clear land titles, and prevalence of black money.  Some of these fall under the State List.

 

European crisis

  • The events are changing fast in Europe after the Paris act by the IS. It led to the growth of right wing in France and many European countries, restriction on the flow of immigrants, etc. Increased border controls and paranoia is putting the entire idea of Schengen concept under grave threat.
  • On the other side, the Emergency powers of the state are increasing in Europe. It will cause huge damage to the civil liberties which Europe always stood for. The law passed in France to provide emergency powers to French president during peace time is one such a law that can have many unforeseen consequences.
  • At larger scale, it will have a greater impact on the global governance. Concept of co-existence of people from different regions and religions is under grave threat.
  • On the other side, the Emergency powers of the state are increasing in Europe. It will cause huge damage to the civil liberties which Europe always stood for. The law passed in France to provide emergency powers to French president during peace time is one such a law that can have many unforeseen consequences.

 

 

India Pakistan Dialogue process

  • The dialogue process is reinitiated and NSA, foreign secy, foreign ministers and Prime minister level talks are on the agenda.
  • NSA Ajit doval and foreign secretary Jai Shankar met their counterparts of Pakistan in Bangkok.
  • External Affairs minister Sushma Swaraj is travelling to Islamabad to attend Heart of Asia donor conference on Afghanistan.
  • Prime Minister Modi will visit Pakistan to participate in SAARC summit.

 

India and Pakistan 10 point comprehensive dialogue replaces 8 point composite dialogue. It includes

  1. Peace and Security, CBMs,
  2.  Jammu & Kashmir,
  3. Siachen,
  4. Sir Creek,
  5. Wullar Barrage/Tulbul Navigation Project,
  6. Economic and Commercial Cooperation,
  7. Counterterrorism, Narcotics Control
  8. Humanitarian Issues,
  9. People to People exchanges and
  10. Religious Tourism

 

The composite dialogue process was started in 1998 with focus on eight issues. It was stalled in 2008 after the Mumbai attacks and later resumed partly in 2010 under the new name of Resumed Dialogue with special focus on counter terrorism.

 

 

TAPI pipeline

It will export up to 33 billion cubic meters of natural gas a year from Turkmenistan to Afghanistan, Pakistan, and India over 30 years. 

The Tapi project could help ease growing energy deficits in Asian giants Pakistan and India.

For Turkmenistan, which has been hit by low energy prices and dependence on China for the vast majority of its gas sales, Tapi is a key opportunity to diversify its exports.

But uncertainty hangs over the project. The project is politically complex, requiring cooperating governments, and logistically challenging, as the pipeline would pass through areas of Afghanistan and Pakistan plagued by Taliban and separatist insurgents.

 

Question of the day

Do you think Regulation of real estate sector can solve the complexities involved with housing for all.

 

Branches

Ashok Nagar Branch
1-10-223/A, Sub-register office Line
Hyderabad
+91 9052 29 29 29, 9052 19 29 29

Madhapur Branch
Plot No.3, 2nd floor, Raghuma Towers
Hyderabad
+91 9052 492929

Delhi:
Old Rajendra Nagar

Send to mail

Request for call