Flat ownership bill may come up in assembly
Aug 20, 2015
Source : Toi

 

BHUBANESWAR: The long-awaited bill to amend the Odisha Apartment Ownership Act, 1982, is scheduled to come up in the assembly during the monsoon session, which started on Tuesday.

The bill will make formation of association of apartment owners (AAOs) a compulsory and time-bound process .

The Odisha Apartment Ownership (Amendment) Bill, 2015, is a crucial piece of legislation to streamline community living amid the mushrooming of apartments in the cities.

According to the amendment bill, the developers have to submit an undertaking in a prescribed form (to the appropriate government authorities) to form AAOs.

The declaration has to be made before construction of any apartment to be used for residence, office or trade. They also have to spell out transfer of right, title and interest in the property within such period as specified in the undertaking. The AAOs should be registered under the Registration of Societies Act, 1860.

The developers also have to declare whether the land is leasehold or freehold making it transparent for the prospective buyers.

Real estate market insiders feel the proposed changes would come as a breather for home buyers. The developers have a tendency to retain control over the apartments as long as possible. Hundreds of apartments in Bhubaneswar don't have registered AAOs.

"The mandatory provision will protect buyers' interest and nail the black sheep in the real estate sector," said Pradipta Biswasroy, president of Real Estate Developers Association of Odisha (Reda).

The buyers of properties have to be compulsory members of the AAOs and abide by the bylaws.

The buyers not obeying the apartment rules and developers contravening the provisions of the amended Act would face fine up to Rs 1 lakh (compared to Rs 5,000 in the existing law).

Though the existing Act has the provision to form AAOs, it has not specified when it should be formed and under whose initiative. As a result, many developers choose to skip it, said an insider.

The cabinet had approved the draft amendment, (first mooted in 2011), during the last term of the government on December 20, 2013.

The state government had engaged CRISIL, a policy advisory company, to help making the required changes in the apartment ownership Act.

The CRISIL had done a comparison of apartment ownership Acts of Maharashtra, Bihar and Odisha before preparing the draft.

Latest Realty News

Home-buyers-to-benefit-from-govt's-move-on-Okhla-Bird-Sanctuary
Aug 19, 2015
NEW DELHI: As many as 55,000 home buyers will benefit immediately from the government's move to reduce the area of the eco-sensitive zone around the Okhla Bird Sanctuary here, leading real estate developers said.
New-Okhla-boundary-sets-homebuyers-free
Aug 19, 2015
NOIDA: The final announcement on he bounds of the eco-sensitive zone around Okhla Bird Sanctuary by Union minister Prakash Javadekar is likely to put smiles back on the faces of Noida flatbuyers and builders alike. The legal impasse, which had crippled the real estate bazaar for two years, had even paralysed homebuyers from moving into ready flats.
Refund-Rs-49k-cr-to-investors,-SAT-tells-realty-major-PACL
Aug 18, 2015
MUMBAI: Securities Appellate Tribunal (SAT) on Monday upheld an order by market regulator Sebi against Jaipur-based real estate major PACL Ltd and directed it to refund Rs 49,100 crore that the company had collected through what the tribunal termed as 'sham collective investment scheme (CIS)'. This was the largest CIS in the country so far — in terms of money collected as well as the number of investors involved — against which Sebi had passed an order.
Real-estate-industry-keeps-fingers-crossed-for-GST-Bill-to-be-passed-this-week
Aug 18, 2015
NEW DELHI: The real estate industry is keeping its fingers crossed and hoping that the Goods and Services Tax (GST) Bill would be passed in the current Monsoon Session of Parliament so that rationalisation of taxes on purchase of materials does not get pushed to 2017.
Realty-projects-in-Kolkata-reel-under-neta-extortion
Aug 18, 2015
KOLKATA: Civic officials and politicians are now asking real estate developers in Kolkata and its vicinity to pay for every activity related to construction. This amount is so significant that developers factor in the additional cost at the planning stage of a project while calculating overheads.
Carlton-House-to-become-legislators'-club?-Storm-brews-on-social-media
Aug 17, 2015
Months after the proposed plan to demolish Balabrooie Guest House to build a club for legislators was scrapped following a public outcry, deputy speaker NH Shivashankara Reddy told media that Carlton House, another heritage building, would be converted into the proposed club. Carlton House is situated on Palace Road, off Vidhana Soudha.
Cash-strapped-builders-turn-to-PEs,-NBFCs-to-refinance-debt
Aug 14, 2015
BENGALURU/MUMBAI/NEW DELHI: Real estate developers are increasingly turning to private equity investors and non-banking finance companies to refinance massive debts due to sluggish home sales in the last couple of years and banks becoming cautious about lending to the industry
BDA-illegally-Parks-Funds-In-MFs,-Other-Agencies
Aug 12, 2015
BENGALURU: Can money raised by the Bangalore Development Authority from aspiring site owners be parked in high-risk investment instruments like mutual funds, though the plots remain elusive for years? Can the agency tasked with ensuring sustainable and orderly growth of Bengaluru resort to unauthorized monetary transfers to assorted government agencies like the Coffee Board, Bangalore Metro Rail Corporation and Karnataka Backward Classes Department Building Construction Society which builds stud
No-Safety-in-City's-Buildings
Aug 12, 2015
As real estate prices skyrocket and renting out a house in the city gets increasingly difficult, many tenants are opting for illegal structures that are comparatively cheaper. Monday's incident at Teynampet, where a three-storey residential building on Bhaktavachalam Street tilted, once again exposed the risk of illegal buildings in the city. Taking no chances, Corporation of Chennai has decided to demolish the structure.
Real-Estate-Bill-Clears-Govt-Of-Blame,-Worries-Some-Builders
Aug 11, 2015
Panaji: The Real Estate (Regulation and Development) Bill, 2013, which is still pending in Parliament, has the Goan real estate industry worried. While stakeholders agree that the bill, once passed, will bring clarity and confidence into the real estate market, developers are wary about the lack of onus placed on the government, which they feel, is an important stakeholder in the real estate economy.

Latest Realty News Of State

Realty Talk's