‘’Paper 4 – GS-III, Topic: Land Reforms in India – Real Estate Law in India enforced now; Definition, Enactment, Features and Terms to know.
Law promises to protect rights of homebuyers
- Projects with plot size of minimum 500 sq.m or eight apartments will have to be registered.
- Real Estate Act is likely to benefit thousands of aggrieved home-buyers but may create troubles for developers, who are failing to complete their housing projects for last many years.
Defining Real Estate Law or Real Property Law
- The legal definition of real estate or real property is land and the buildings on it. Real estate law governs who may own and use the land. The term real estate generally refers to ownership or use of land. Real estate law is a branch of civil law that covers the right to possess, use, and enjoy land and the permanent man-made additions attached to it. Real estate law directly or indirectly impacts most of us on a daily basis, affecting homeowners, renters, landlords, home buyers and home sellers.
A much awaited Enactment:
- The much-awaited Real Estate Regulatory Act, which promises to protect the rights of homebuyers and bring in transparency to the sector, comes into force on Monday. Though only 13 States and Union Territories have notified the rules so far, the Centre believes that within the next two months, others too will follow soon; All Sections of the Act will come into force from May 1, 2017 and become operational.
Elite Features of the Enactment
- It makes it mandatory for all builders – developing a project where the land exceeds 500 sq m – to register with RERA before launching or even advertising their project. Developers have been given time until July 31 to register.
- Not doing so will invite up to a maximum imprisonment of 3 years or fine of up to 10% of the total project cost.
- Developers will have to submit as well as upload project details, including approved layout plan, timeline, cost, and the sale agreement, that prospective buyers will have to sign to the proposed regulator.
- Real Estate Appellate Tribunals to be set up in every state.
- Developers will have to put 50% of the money collected from a buyer in a separate account to meet the construction cost of the project. This will put a check to the general practice by developers to divert buyer’s money to start a new project instead of finishing the one for which money was collected. This will ensure that construction is completed on time.
- The law is likely to stabilize housing prices. It will lead to enhanced activity in the sector, leading to more housing units supplied to the market.
Source: Indian Express
‘’Paper 4 – GS-III, Topic: Infrastructure Investment – Definition, Trusts, Regulation and Structure.
An economic downturn or project delays may hit infrastructure projects and result in lower returns.
- As per present regulations, Inv. IT investments are not open for small and retail investors
- Inv. ITs raise funds from a large number of investors and directly invest in infrastructure projects or through a special purpose vehicle.
What you need to know:
- The initial public offering (IPO) for IRB Inv. IT, India’s first infrastructure investment trust fund will open for subscription on May 3 and close on May 5. Sponsored by road developer IRB Infrastructure Developers Ltd., the trust aims to raise up to ₹4,035 crore.
Defining Infrastructure Investments Trusts:
- Inv. ITs are similar to mutual funds. While mutual funds provide an opportunity to invest in equity stocks, an Inv. IT allows one to invest in infrastructure projects such as road and power.
- Inv. ITs raise funds from a large number of investors and directly invest in infrastructure projects or through a special purpose vehicle. Two types of Inv. ITs have been allowed: one, which invests in completed and revenue generation infrastructure projects; the other, which has the flexibility to invest in completed or under-construction projects. Inv. ITs which invest in completed projects take the route of public offer of its units, while those investing in under construction projects take the route of private placement of units.
- As per present regulations, Inv. IT investments are not open for small and retail investors. The minimum application size for Inv. IT units is ₹10 lakh. The main investors could be foreign institutional investors, insurance and pension funds and domestic institutional investors (like mutual funds, banks) and also super-rich individuals.
- Inv. ITs are registered as trusts with SEBI and there are four parties — trustee, sponsors, investment manager and project manager. In the case of IRB Inv. IT, IRB Infrastructure Developers Ltd. is the sponsor, IDBI Trusteeship Services Ltd. is the trustee, IRB Infrastructure Pvt. Ltd. is the investment manager and the project manager is Modern Road Makers Pvt. Ltd.
‘’Paper 2 – GS 1, Topic: Impeachment Motion against Nepal’s Chief Justice- First Woman & her allegation.
Interfering in jurisdiction of executive and failing to issue verdicts without prejudice
- Sushila Karki assumed office as Nepal’s first woman chief justice on August 1, 2016. She has a Masters in political science from Banaras Hindu University, Varanasi.
- As per the impeachment motion she’s accused of interfering in the jurisdiction of the executive and issuing prejudiced verdicts.
Champion of Women:
- Was known for judgment that allowed women to pass their citizenship to their kids, previously something only men could do in Nepal.
- According to constitutional provisions, an amendment motion can be filed in the parliamentary secretariat by securing the support of at least one fourth of the total law makers.
Filing of Impeachment:
- Over two hundred legislators from the ruling CPN (Maoist Centre) and Nepali Congress on Sunday filed an impeachment motion against karki who had been at centre of controversy following a series of verdicts ‘embarrassing’ the government, several high-profile politicians and bureaucrats.
Source: Indian Express