Realty law can be tweaked: Maharashtra CM
Maharashtra Chief Minister Prithviraj Chauhan has said he would look into concerns of the buyers and promised a “pro-buyer” regulator when it comes into existence. The state has implemented Maharashtra Housing Regulation and Development Act 2012, which will set up a first-of-its-kind state regulator for the real estate sector. The act is based on the same law that the central government is trying to get passed in the parliament.
The law has come under criticism for being too soft on developers and giving little rights to the buyers. The central bill, a key point dropped in the state law, does not allow registration of real estate projects till all clearances were given. Similarly, in the central bill, the onus of providing utilities was on the developer but there isn’t such provision in the state law. Another noteworthy point is if a promoter (developer) defaults, he would return money to the homebuyer with interest capped at 15 percent while for a buyer, the penalty is equal to the amount defaulted.
Mumbai Grahak Panchayat, a consumer organization had written to the governor before the bill was passed in the state. It was of the opinion that bill fails to empower the regulator with powers to address complaints of flat owners.
The law has received criticisms from the developers. They complained that law does not meet their expectations regarding “single-window clearance” and was too consumer-focused while having “nothing for builders”.
The chief minister Chauhan said that the government will make efforts to decongest Mumbai by encouraging new integrated townships, which allow economic, residential, recreational activity and educational activities.
Source: Money Control
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