Page 47 - Banking Finance April 2016

INDUSTRY UPDATE

Highlights of the Real Estate Bill

2016

1. The bill seeks to regulate both commercial and 7. No pre-launch will be allowed without getting all

residential real estate projects. approvals from the local authorities and without

2. It also seeks to set up fast track dispute resolution obtaining registration from the regulator. All
mechanisms for settlement of disputes through incomplete projects are to come under the regulation.

adjudicating officers and Appellate Tribunal. 8. The bill covers any project that is more than 500 sq m

3. Appellate Tribunals will now be required to adjudicate or has more than eight apartments (states can lower
cases in 60 days as against the earlier provision of 90 this requirement further).

days and Regulatory Authorities to dispose of 9. Builders can no longer go scot-free by putting up flashy

complaints in 60 days while no time frame was designs or photographs of a project to attract buyers

indicated in earlier bill. and failing to deliver projects that match the pictorial

4. All projects will have to be registered with regulatory claims.

authorities, and developers will have to disclose project 10. The bill states the builder has to return the payment
information including details of the promoter, project, with interest to buyers who are affected by such
layout plan, land status, status of approvals and 'incorrect, fast statements contained in the notice,
agreements along with details of real estate agents, advertisement or prospectus or the model apartment,
contractors, architects and structural engineers. plot or building as the case may be'.

5. There will be no discrimination of any kind on basis of 11. It provides for imprisonment of up to three years for
promoters and up to one year for real estate agents
religion, region, caste, creed or sex and gender and it
and buyers and/or monetary penalties if they violate
will be included in the rules. The government may bring
orders of appellate tribunals.
in a "non-discriminatory" clause to allow anyone

(including a transgender) to buy property in a complex. 12. The authority can even order 'compensation' to

6. Builders will have to deposit a minimum of 70% consumers in case of misleading advertisements.

collections from buyers in an escrow account to cover 13. In addition, developers will have to provide brief details
cost of construction and land. State-level Real Estate of projects launched in the past five years, both
Regulatory Authorities will be established to regulate completed or under-construction, and the current
transactions related to both residential and commercial status of the projects. These may be made available
projects and ensure their timely completion and on the regulator's website so buyers can take an
handover. informed decision.

UCO Bank records Q3 net loss at Rs. 1,497 cr

UCO Bank has reported a net loss of Rs 1,497 crore in the October-December quarter of FY16 against a net profit Rs
303.59 crore in the corresponding quarter last year. The bank's total income stood at Rs 4,934.60 crore, compared
with Rs 5,447.39 crore last year, a fall of nearly nine per cent. Gross non-performing assets stood at 10.98 per cent
in the last quarter, against 6.50 per cent in the same period last year. The net NPA of was 6.51 per cent, against 4.25
per cent a year ago. In terms of absolute value, the gross NPA swelled to nearly Rs 1,4931.80 crore, against Rs 9,530.63
crore last year. The net NPA stood at Rs 8,409 crore, against Rs 6,051 crore in the same period last year.

BANKING FINANCE | APRIL | 2016 | 47