Mislead Property Buyers: Real Estate Promoters will be jailed

The Union ministry of housing  and urban poverty alleviation has refused to dilute the penalties to be imposed on non-compliant promoters in the final version of the Real Estate Regulation & Development Bill (RERDB), despite industry opposition to the concept of sending the offender to jail.

3 years jail ..!

The latest draft legislation, expected to be taken up by the cabinet soon, has proposed up to 3 years jail or / and a penalty up to a 10th of the estimated cost of the real estate project in question for promoters willfully failing to comply with some key provisions.

The latest draft talks of returning the amount paid by a buyer, along with interest, in respect to an apartment, plot of land, or a building, if a promoter fails to complete a project on time and give possession as promised in accordance with the agreement. Also, a promoter will not be able to accept more than 10% of the cost of an apartment as advance payment or application fee, without a written agreement.

Mandatory registration of projects..!

One significant provision is mandatory registration of real estate projects &  real estate agents who intend to sell any immovable property with the proposed Real Estate Regulatory Authority.

 Public disclosure of all project details will be mandatory. In addition, real estate companies must compulsorily deposit 70%t of the funds received from allottees in a separate bank account, for purposes of ensuring timely completion of projects. Punitive provisions include deregistration of the project and penalties in case of contravention of the provisions of the Bill.

Real Estate Appellate Tribunal..!

Within a year of the Act coming into place, Real Estate Regulatory Authorities will have to be constituted by the government of each state and Union Territory. More than one authority in a state is permissible.
At the central level, a Real Estate Appellate Tribunal has been proposed. The legislation is aimed at protecting the interests of ordinary people and home buyers across the country against unscrupulous practices in the sector.

After the cabinet approves the Bill, it will be introduced in Parliament. Once an Act, it will be implemented across the country, except in Jammu and Kashmir (where the state legislature has the authority to decide whether or how much to extend).

Although the housing ministry has aimed to introducing the Bill in the current session of Parliament, this may be difficult.

Src: Business Standard.
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1 comment:

  1. This is the only and best way to save the buyers ..It law fully reduces the problem of buyers..

    ReplyDelete

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