The passage of Realty Bill, which was passed in Rajya Sabha on Thursday has been welcomed by most, including buyers and builders.
Bill not only paves way for setting up a regulator to offer buyers protection from unscrupulous activities, but also expected to benefit builders as higher transparency and accountability will attract institutional fund flow.
Appreciating move, Niranjan Hiranandani, CMD of the Hiranandani Group said that with clearance of this bill, much-needed transparency will come into the realty sector.
However he cautioned that interest rate cost can go up as money being escrowed would mean a developer will have to arrange for liquidity from other areas.
Om Ahuja, CEO-residential of Brigade Group added that bill will help builders not to get over-leveraged as the money cannot be diverted and will be limited to projects only.