The Real Estate (Regulation and Development) Bill, 2013 has been amended
on Tuesday, April 7, 2015. This Bill provides a number of benefits to the Buyer
and makes a few obligations on the Real Estate Developers to create a uniform
regulatory mechanism in India. The Real Estate (Regulation and Development) Bill, 2013 aims
at protecting the interest of consumers by regulating in such a manner that
buyers get timely execution of projects and heavy penalties, including
imprisonment is provided for the defaulting Developers.
Important
Changes for regulation provided in the bill:
Ø Every State will have a
real estate regulator to settle disputes between buyers and the Developer or
intermediary. All housing and commercial projects will be registered under
regulatory authority to ensure that buyers can have access to genuine projects
and even ongoing projects that have not received completion certificates will
also be covered. The Developers after their registration with such authority
will be allowed for advertising or launching of the project with the permission
of such regulatory authority.
Ø Developers will be
allowed to sell or advertise not on the basis of super area but carpet area of
a flat.
Ø It will be mandatory for
the developers to disclose layout plans and submit clearances with the
regulator.
Ø The name of the contractor,
architect, structural engineer, etc. associated with the project will also be
registered with regulatory authority to ensure transparency.
Ø There is a provision for deposit of 50 per cent of the amounts realized from buyers in a separate bank account
within 15 days by the promoters to ensure timely completion of the projects.
Ø The Developers will be
allowed to alter the layout plans, designs or any specification in any manner
only with the consent of two-third buyers. In case of defaults the developer
will be under obligation to rectify
structural defects free of cost and refund money in case the buyers so wish.
Ø Even the Brokers or
intermediary persons in any way involved in sale of flats and plots will
mandatorily be registered with the real estate regulator and non compliance
will be punishable.
Ø The Buyers will have right
to claim refund
with interest and compensation from promoters in case of delay in completion of
the project.
Ø The projects will be
de-registered and penalties will be imposed on the developer and fine can go up
to 10 per cent of project cost in case of noncompliance or any violation of
Rules. Even any false representation or wrong information will attract fine of
5 per cent of project cost.
Ø The Bill if passed will help
curb undeclared "black money" in property markets and save the Govt from
revenue loss running into crores.
