Tuesday, 4 June 2013

REAL ESTATE BILL NOT SHAPED PROPERLY


Real Estate Regulation Bill discussed in cabinet meeting is just an eye wash, without teeth and incomplete legislation as it appears from the draft of the bill. Though it is a replica of Consumer Protection Act, it is going to increase miseries instead of protecting interest of the consumers. It seems that the bill is brought in haste, several important points are not covered in the scope of the Bill. Lot of amendments are required in the draft Bill, if govt. really want to look in to the 
grievances of the consumers in reality estate sector. Role of consumer organisations is completely ignored in this bill. Whereas they should have been given weightage over individuals. We Akhil Bhartiya Grahak Panchayat with a large experience in the field know, how the consumers are getting cheated. We are not able to see, solution of those problems in the bill.

Definition Section 2 of the bill, is unable to include consumer organisations as a person. Now a days only consumer organisations are helping consumers in getting reliefs, either by mutual understandings or in the consumer courts. 
Important role of consumer organisations can not be ignored, it should be included as a person in definition section.

Similarly "DISPUTE","COMPLAINANT" & "COMPLAINT FILING PROCEDURE""CONSUMER ORGANISATION is absent from this section 2, are not defined. And is a must,  who and how one will go before regulatory authority is in dark. The definition of above mentioned words is necessary.

Section 15(1)b of the Bill deals with the case of failure of the promoter in giving possession or flat/building to the consumer. Remedy is given that the promoter will refund the amount with interest. This open ways for the promoters in getting rid from the consumers, in today's market, where prices in the reality sector are on the rise every day. Promoter will not be pained in refunding money with the interest. But poor consumer have to forget, purchasing any similar accommodation, because of escalating costs. The promoter should be made liable to give similar accommodation to the consumer as he has booked or possession of the plot should be given to the group of consumers of the dwelling unit, so that they themselves can get their apartment constructed, at proportionate cost. 

Section 19 is about, who can become member of the authority. All government servants are excluded except secretaries. Why secretaries, it should also be deleted from this section.

Section 30 is about amicable solutions. Consumer association having experience in the field are ignored, instead appointment of persons, officers suggested. Consumer organisations like Akhil Bhartiya Grahak Panchayat has sorted out thousands of disputes, till now amicably, even when this act is not in existence. Consumer organisations can play a great role in this field. Therefore role of Consumer organisations should be inserted in this section, with a remark of giving them preference over others. Definitely care should be taken in selection of the consumer organisations with credentials. It is also important to give preference to organisations over individuals, because involvement of organisations will restrict malpractices.

Section 48, constitution of advisory council, participation of consumer organisation is also not addressed properly in this section. Five bodies are selected to give 10 members, participation of consumer organisations should be increased here also.

Again section 50 penalties clause is unable to accommodate, alternative accommodation of similar description in similar area, it should be included.

The draft is approved by the cabinet, needs much more corrections, other then discussed above. It will be better if a group discussion is organised before introducing it in parliament. Suggestions should be asked from different segment of the people. 



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