Indian govt is going to implement a real estate regulatory bill to ensure the quality and service in the real estate industry and protect the rights of the customers. They key points in the new real estate regulatory bill are
- The Real Estate (Regulations and Development), bill 2013 will require the builders to get all necessary clearances before launching the project.
- The bill requires builders to publish all relevant clearances on a website after submitting the same to the regulator.
- Any false or misleading advertisements will be dealt with a penalty amounting to 10 per cent of the total project cost for the first time and repeat offender could land up in jail. Also the buyers will get a full refund in-case of misleading advertising.
- The bill stipulates that developer must open a separate bank account for a particular project so as to restrict developers from diverting funds elsewhere.
- The legislation also seeks to remove ambiguity over ‘super area’ and requires the developers to clearly define ‘carpet area’.
- Developers need a written agreement to take more than 10% advance form buyers.
- The authorities will approve or reject within 15 days of the clearance.
- Builders cannot collect money from potential buyers unless all clearances are in place.
- An appellate tribunal will be set-up for realty to resolve disputes.
The new bill, though investor friendly, is likely to fuel corruption