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National: Real estate regulation bill gets approval from Union Cabinet

The Real Estate Regulation and Development Bill, finally got approval from Union Cabinet. Ajay Maken, Union Minister of Housing and Urban Poverty Alleviation had been trying to get the cabinet’s nod on regulatory bill. Cabinet pondered over the bill on 2nd April, decision couldn’t be taken due to some differences.

 

The objective behind coming up with this regulatory bill was to provide real estate sector a uniform regulatory environment and save interest of home buyers.

 

This new bill has different provisions which realty developers need to follow and in case of failure to comply with these provisions builders can be penalized with both jail term and monetary fine.

 

As per the provisions in bill, developers can launch any project only when they have got all the required statutory clearances from relevant authorities. On getting all the clearances, builders are required to submit these to the regulator and display these on website too. Construction of a project can be started only after meeting with these requirements.

 

This new legislation will bar developers from misleading prospective home buyers by showing misleading advertisements about projects. Those who don’t follow these will be penalized with a monetary fine of up to 10 percent of the project cost and on repetition of the same they can be imprisoned.

 

Further, as per the bill, it will also be made compulsory for a developer to keep separate accounts for all projects to make sure that money received for a particular task is not used for some other purpose. Now developers will not be able to lure customers by using ambiguous terms like ‘super area’ for they need to provide clear definition of ‘carpet area’.

This entry was posted in Budget 2013, Gurgaon, Investment, Mumbai, Newsletter. Bookmark the permalink.

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