The Union Cabinet has approved the Real Estate (Regulation and Development) Bill to set up a regulator for the real estate sector in the country. According to highly placed sources, this was approved in the cabinet today.

The bill seeks to make it mandatory for developers to launch projects only after acquiring all the statutory clearances from relevant authorities.

It has also provisions under which all relevant clearances for real estate projects would have to be submitted to the regulator and also displayed on a website before starting the construction work.

The Cabinet also accepted the offer of Vodafone for a non-binding conciliation. Mr. Chidambaram said if the outcome of the conciliation is found acceptable to the government, it will be put up before the cabinet for its approval and thereafter to Parliament .

He said it is in India's interest to resolve the issue with Vodafone. The Minister said the government's decision is based on the recommendations of the Parthasarthi Som Committee. He said there is no timeline for the conciliation and the government would communicate it to Vodafone in a day or two.

Vodafone has been involved in a 11,200 crore rupees tax dispute for the purchase of Hutchison's stake in Hutchison Essar in 2007.