Cabinet clears real estate bill; repeat offences may land developers in jail
The bill seeks to provide a uniform regulatory environment to the real estate sector in the country.
Jun 05, 2013
Source : The Economic Times

 

DELHI: The Cabinet on Tuesday cleared the Real Estate (Regulation and Development) Bill that provides for the creation of a regulator for the sector and tighter norms for selling housing projects.

 

The bill seeks to provide a uniform regulatory environment to the real estate sector in the country. Builders will have to now register all projects on plots measuring 4,000 sq metres or more with a regulatory authority.

 

They can launch projects only after acquiring all the statutory clearances from relevant authorities. The bill also has provisions to deter builders from putting misleading advertisements related to the projects. Failure to comply with these provisions for the first time would attract a penalty, which may be up to 10% of the project cost, and a repeat offence could land the developer in jail.

 

Lakhs of unorganised property agents have also been brought under the purview of the authority. They will have to mandatorily register with the real estate regulator authority.

 

The bill also makes 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 to other projects. The bill provides a clear definition of carpet area and would prohibit private developers from selling houses or flats on the basis of the ambiguous term 'super area'. To help consumers settle disputes, the bill also provides for establishment of fast-track dispute resolution mechanisms through adjudicating officers, to be appointed by the regulatory authority.

 

Developers, however, are opposed to the bill in its current form.

 

"We are not against a regulator in principle, but any such bill should not be anti-development and retrograde in nature. It may be misused by people in the power to unnecessarily delay real estate projects," said Geetamber Anand, managing director of ATS Infrastructure and president elect, Confederation of Real Estate Developers Association of India.

 

Anshuman Magazine, chairman and managing director of property advisory firm CBRE South Asia, said: "The real estate regulator bill should have been more balanced, taking into account challenges faced by developers and consumer grievances. While consumers need protection, administrative reforms are required urgently for real estate development to happen more efficiently and in a transparent manner."

Latest Realty News

Curious crowds throng thana
Jun 05, 2013
BHUBANESWAR: The much-hyped fraud by AT Group has stirred public curiosity as it was evident during the interrogation of some influential builders, businessmen and media entrepreneurs, having alleged nexus with the company, at Kharvela Nagar police station here on Tuesday.
AT fraud: Media heads plead innocence
Jun 05, 2013
BHUBANESWAR: Some media entrepreneurs and builders, who on Tuesday were interrogated for their alleged links with the Artha Tatwa (AT) Group, washed their hands off the fraud and pleaded innocence.
Dighi-Dhanori-Lohegaon offers properties in the budget range
Jun 04, 2013
PUNE: The 1.5 km road from Dhanori to Lohegaon, clubbed with nearby Dighi, has witnessed increased real estate activity in recent times. Availability of large land parcels has been a major attraction for many developers to launch their projects along this stretch. Data with MagicBricks.com states that approximately, 10 per cent of the new properties available in the city are along this area.
Bangalore sees high supply of luxury housing units
Jun 04, 2013
BANGALORE: Bangalore real estate market has evolved over the years with the establishment of IT companies and an influx of professionals entering the city from across the globe. Residential real estate market of the city is seeing positive growth not only in terms of demand but also in supply, especially in the luxury segment.
AT agents to come under lens
Jun 04, 2013
BHUBANESWAR: After AT Group's top bosses, police have now decided to turn the heat on agents, who lured gullible investors and collected huge amounts. Police sources said AT Group agents were getting the highest commission, nearly 40%, compared to other money circulation companies in Odisha.
Chit fund judicial probe a cover-up act: KV Singhdeo
Jun 04, 2013
BHUBANESWAR: State BJP president KV Singhdeo on Sunday held the government squarely responsible for the chit fund scam and said the judicial commission instituted by the government is a cover-up exercise. He kicked off the third leg of his statewide mass contact campaign from Keonjhar district.
Thane remains a preferred realty destination of MMR
Jun 04, 2013
MUMBAI: Thane, also known as the lake city, is one of the major urban conglomerations of the Mumbai Metropolitan Region (MMR) and is well connected to all parts of the country by rail and road.
The upcoming middle-class destination
Jun 04, 2013
MUMBAI: The road from Ambernath to Badlapur is flushed with properties suitable for the middle-income buyers who have limited options available in Mumbai. Those looking for residential options in the budget range of Rs 20-40 lakhs can opt for the Ambernath-Badlapur area. They are witnessing an ever-increasing demand for residential properties because of their low property values.
Lease violations high in Mumbai suburbs
Jun 04, 2013
A review by the collector’s office has found violations on a majority of plots allotted on lease in the suburbs. On plots where the lease has run out, violations have been detected in about 95% of the cases.
Kochi Metro work to begin on Friday
Jun 04, 2013
Chief Minister Oommen Chandy will inaugurate the construction work of Kochi Metro at a function to be held near Jawaharlal Nehru Stadium, Kaloor at 10.30am on Friday.

Latest Realty News Of State

Realty Talk's