Developers must get clearances before publicizing projects- New Real Estate Bill
New Delhi- The new Real Estate (Regulation & Development) Bill proposes that the real estate developers will have to first seek all the requisite permissions and approvals before they set out to announce their projects and get the buyers to sign up.
The proposed Housing Bill makes it mandatory for the builders to get permissions for construction, building sanctions, environment and civil aviation clearances, for any project which they are planning to develop. Only after getting all the requisite clearances the developers are allowed to publicize the project.
Shortly, the Bill will be sent to the Union Cabinet for approval by the Union Ministry of Housing & Poverty Alleviation. It interprets the essentials that will have to be followed by the construction industry.
HUPA Minister Ajay Maken believes that the Bill will be a success in protecting consumer interests. The move will curtail the prevalent practice of misleading the consumers and will force the builders to deliver what is promised. The minister is keen to table the Bill in the Budget session of Parliament soon.
Once the Bill is passed, the regulatory authority will launch websites for each state. Builders will have to upload all the actual details of the plan in the website. Deviations from the disclosures will not be allowed. For instance, if a developer mentions that a housing project will have a particular number of floors and floor area (based on floor area ratio), then the project should not have more than what is mentioned earlier. Whatever disclosed on the regulator’s website will have to be adhered to.
The Bill also defines what comprises open spaces and what makes for a common area space. There are ambiguities in what makes for a carpet area of an apartment, and the Bill tries to remove those. The builders will be required to give an outer limit of the completion date and if, for any extraneous reason, they need more time, then they will have to seek extra time from the regulator.
The defaulters will be given stringent punishment, including a jail term. The Bill proposes that 70 percent of the money collected for a specific project will have to be maintained in a separate account and the builders will not be able to divert funds from an ongoing project to start a new one. The agreements between buyers and sellers will also be checked by the regulator.
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building sanctions, carpet area of an apartment, common area space, Construction industry, environment and civil aviation clearances, Floor Area Ratio, home buyers, housing bill, housing project, New Delhi, ongoing project, Open spaces, permissions for construction, Real Estate Developers, Real estate regulation & development bill, regulatory authority, Union Cabinet approval, Union Ministry of Housing & Poverty Alleviation
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[...] Developers must get clearances before publicizing projects- New Real Estate Bill [...]
[...] Developers must get clearances before publicizing projects- New Real Estate Bill [...]