The cabinet approval of
the long pending Real Estate Regulatory Bill is a positive first step towards
bringing in the much needed transparency to the sector. The Bill will bring
about a common regulatory platform for all stakeholders in the industry thereby
ushering in a higher degree of accountability amongst builders and sales
intermediaries.
The Bill in its current
form applies to both residential and commercial real estate, and is a far more
comprehensive and holistic in approach, addressing both the regulatory and
development oriented aspects of the industry. The following are the 5 notable
features:
1.
Creation of statewise
regulatory authorities for the sector
2.
Mandatory registration
of real estate projects and agents
3.
Mandatory public
disclosure of all project details. This will go a long way in ensuring easier
scrutiny on compliance to approved plans, progress on statutory approvals etc
4.
Functions and duties of
a promoter are clearly defined. This will bring in greater accountability on
the part of builders and give room for a clear locus standi for buyers to
pursue legal proceedings if any against errant builders
5.
Builders are required to
deposit 50% of the amount realized towards bookings on a project in a
commercial bank account within 15 days of receipt, and deploy the funds for
construction of the project.
Source:INDIAPROPERTY
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