Mumbai: A provision for imprisoning developers in the Real Estate (Regulation and Development) Bill, 2013, is a step in the wrong direction, says realty major DLF.
The Cabinet on Tuesday evening approved changes to a bill that seeks to regulate the country's property market, notorious for black money and delayed possessions.
Speaking to NDTV, DLF's group executive director Rajeev Talwar said while it is a game-changing bill, it does come with some "glitches".
"Regarding the criminal procedure code which has been allowed into this for imprisonment, I think that is something that is unnecessary because imprisonment should not really be a part of a civil dispute," Mr Talwar said.
According to the bill, if rules are violated, projects will be de-registered and penalties will be imposed on the developer. Non-compliance with registration norms will attract a fine of 10 per cent of the project cost. It could also attract an additional penalty of 10 per cent of the project cost or a 3-year imprisonment term or both.
Property consultant JLL India believes that the criminal proceeding provision in the bill is indeed a bit too extreme for developers. "When I read this bill I think it is to the extent little bit draconian going on to the developers because it has clear criminal proceedings," Anuj Puri, chairman & country and head, JLL India said.
The Real Estate (Regulation and Development) Bill, 2013 is aimed to protect the interest of consumers from errant developers and ensure timely execution of projects.