Real estate regulatory bill to be revised
In a move to bring in relief to the developers, the Ministry of Housing & Urban Poverty Alleviation decided to keep the commercial offices and shops out of the purview of the Real Estate ( Regulation & Development) Bill.
According to officials, the bill will only regulate the housing sector. For now, the current draft bill directs the developers to keep aside about 70 percent of the collected amount from buyers in a separate account. Also, the ministry is likely to lower the limit to 50 percent or make it construction-liked.
This new revised bill will be tabled in the current Budget session of Parliament and the ministry is waiting for the cabinet to nod before parliament takes up the matter.
The real estate industry is opposing the bill and many developers have raised their concerns that the rule of strict penalties/punishment to be imposed on them if they fail to comply with certain provisions.
The draft Bill proposes a punishment up to three years jail or/and a penalty up to a 10th of the estimated cost of the real estate project for promoters who willfully fail to comply with some key provisions.
A major developer said that the revised bill should have some adjustments/changes to address the concerns of the builders. The developer also said that harsh punishments should only be given to habitual offenders.
The Bill aims to establish a Real Estate Regulatory Authority for regulation and planned development of the real estate sector.
It is strictly said in the draft bill that all the real estate projects should be registered and also it should register the real estate agents who intend to sell any immovable property with the proposed Real Estate Regulatory Authority. All the details of the projects should be disclosed to the public.
Within a year the Bill coming into place, Real Estate Regulatory Authorities will have to be constituted by the government of each state and Union territory. This is aimed at protecting the interests of home buyers and common people across the country against unfair practices in the real estate sector.
Related Real Estate News:
Vasanth Kunj RWA obstructs ongoing road work
Noida Authority constructs U turn at Sector 15A
budget session, commercial estate in delhi, Delhi, Delhi NCR, Delhi Real Estate, inidan real estate sector, Real estate bill, real estate bill in india, Real estate in India, Real Estate Regulatory Authority, Realty News, Regulation & Development
