Union Cabinet defers decision on Real Estate Bill
A decision on the draft law to set up a regulator for realty sector with provisions for jail term for the builders who put out misleading advertisements of projects has been deferred by the Union Cabinet.
This regulator also made compulsory that all the developers who want to launch projects can only get the approval after acquiring all the statutory clearances from relevant authorities.
It is also mentioned there that provisions under which all relevant clearances for real estate projects should be submitted to the regulatory. They should also put the updates about the clearance on the website before starting the construction.
The real estate bill (regulation and development) should provide a uniform regulatory environment to the sector.
There are certain provisions mentioned in this proposed bill which will keep a check on the builder from putting out misleading advertisements related to the projects carrying photographs of actual site.
If the builder fails to do so, they will be fined which will be up to 10 percent of the project cost and a repeat offense could land the developer in jail.
The developer should maintain a separate bank account for every project to make sure that the money raised for a particular task is not diverted elsewhere.
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