Union cabinet has approved the real estate regulatory bill that is expected to bring in a considerable amount of transparency into the sector. Mentioned below are the ways through, which the bill will entail positive impact by safeguarding the interest of the buyers.
- Property and Disclosure of all Relevant information: Developers are expected to disclose all relevant information pertaining to development work, land status, status of approvals, details of the real estate agents, contractors and architect etc. Likewise, according to the bill, developers are not entitled to change the original plan without the consent of the 2/3rd of the consumers of the project. These things will eventually prevent developers from delivering less than what has been initially promised to the buyers.
- Deposit of money collected: Builders will be required to deposit 50% of the amount collected from the buyers in a separate bank account. This amount will be used to meet up the construction cost thereby preventing the developer from any unwanted diversion of the resources.
- Penal provision: In order to ensure the effective implementation of the regulatory framework, strong penal provisions have been introduced, which can involve a fine of 5-10% of the cost of the project and/or imprisonment. In case of continuous violation of the rules, the regulatory authority has also been entrusted with the power to cancel the project.
In addition the regulatory framework has also stipulated numerous other constructive initiatives such as rolling out of online web system for the registration of property and fast track dispute settlement.
With rolling out of a robust framework, the bill is expected to be a great boost towards enhancing the confidence level of the buyers. This will eventually bring in good news for the overall industry as well.