Real Estate (Regulation and Development) Bill to regulate real estate sector in India which got cabinet nod in the month of June 2013 has several provisions which were highly to benefit property buyers in India.
According to a PIB report, considering the sensitivity of the sector, the proposed bill also has stringent rules having provisions like a jail term of up to three years for developers who committed offences like putting up misleading advertisements about projects repeatedly.
The bill sought to provide a uniform regulatory environment to the sector while developers could launch projects only after acquiring all statutory clearances from relevant authorities.
All relevant clearances for real estate projects would have to be submitted to the regulator and also displayed on a website before starting the construction.
According to the bill, builders and developers who become repeat offenders in terms of displaying misleading ads may even face a jail term of up to three years.
The proposed legislation has tough provisions to deter builders from putting out misleading advertisements related to the projects carrying photographs of the actual site.
Failure to do so for the first time would attract penalty which may be up to 10% of the project cost and a repeat offence could land the developer in jail.
The flats when sold should be based on carpet area and not super built area and the same would be made uniform for the entire country.
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