In a move to safeguard buyers from builders and land sharks and regulate the real estate sector, the housing and urban poverty alleviation ministry has redrafted the model real estate Bill - pending since 2009 - to add more teeth to it.
Taking note of complaints of substandard materials, cheap accessories and delays in completion, the ministry has decided to make the draft model Real estate (Regulation of Development) Bill a central Act under the concurrent list.
This will not only make it mandatory for states to implement it once the Bill is notified, it will also give powers to the Centre to enforce the provisions. The previous form of the Bill did not make it mandatory for the states to adopt the Act.
The ministry plans to introduce it in the monsoon session of Parliament after inter-ministerial consultations and cabinet approval.
"Once it's a central legislation, it will become obligatory for states to implement it. The implementation will be fast. Also, it will be a uniform law across the country," said a ministry official.
Under the Act, states will have to set up regulatory authorities and make it mandatory for developers to get themselves registered.
The promoter will have to give an undertaking to complete the work in accordance with the conditions of registration, failing which his licence can be cancelled.