The long pending bill to protect property buyer’s interest from unscrupulous realtors and regulate India’s booming real estate sector is likely to come up for consideration before the cabinet Tuesday.
The draft Real Estate (Regulation & Development) Bill, pending since 2009, proposes setting up of a Real Estate Regulatory Authority in every state. All such builders -- developing a project where the land exceeds 1000 square metre -- will have to register themselves with the regulatory authority before launching or even advertising their project.
Developers will also have to submit project details including approved layout plan, timeline, cost and the sale agreement that prospective buyers will have to sign to the proposed regulator.
Failure to do so will invite up to a maximum three years imprisonment or fine of up to 10% of the total project cost. The bill also has safeguards for developers. Buyer’s who default on payment would also have to cough up fines.
Sources said the contentious bill might face a bumpy ride. It was slated for cabinet discussion atleast twice before but was deferred at the last moment.
If approved, the Housing & Urban Poverty Alleviation (HUPA) ministry which is piloting the bill will introduce it during the forthcoming monsoon session of the Parliament.
The regulatory authority would be headed by a chairman and two members, to be appointed by the respective state government. States would also be empowered to set up a real estate appellate tribunal to adjudicate any dispute between a developer and the real estate regulatory authority.
Earlier, the housing ministry had proposed to set up a central real estate appellate tribunal but was forced to drop the clause after stiff opposition from states like West Bengal and Uttar Pradesh on the ground that it infringes on the federal structure.