Real Estate (Regulation and Development) Bill

Real Estate (Regulation and Development) Bill

June 5th, 2013

Real Estate (Regulation and Development) Bill gets Cabinet’s nod
With the aim to bring uniformity in the regulation of realty sector, the Union Cabinet has cleared the Real Estate (Regulation and Development) Bill.
What does the Bill hold?
The bill seeks to:

• Set up a regulator for the real estate sector with provisions for a jail term for the developer for putting out misleading advertisements about projects.
• Provide a uniform regulatory environment to the real estate sector.
• Make it mandatory for developers to launch projects only after acquiring all statutory clearances from relevant authorities.
• To deter builders from putting out misleading advertisements related to the projects carrying photographs of the actual site.
• Slap a penalty of up to 10% of the project cost to the first time offenders and a repeat offence could land the developer in jail.
• Make it mandatory for a developer to maintain a separate bank account for every project to ensure that the money raised for a particular task is not diverted.
• Provide for clear definition of ‘carpet area’ and would prohibit private developers from selling houses or flats on the basis of ambiguous ‘super area’.
• Builders will be able to sell property only after getting all necessary clearances.
• Forbid developers from collecting money from buyers before completing all necessary permits to start construction on the project.