To tighten control over real estate promoters, the government has made public a model draft legislation to regulate the real estate sector for public responses.
There have been widespread complaints that many promoters have failed to meet their promises to buyers, often overshooting possession dates by a distance.
The draft has been uploaded on the website of the Ministry of Housing and Urban Poverty Alleviation and responses of stakeholders are invited within 45 days.
“We are first seeking responses from the public, some of which we may incorporate. After this, a Bill will be placed in Parliament to be enacted into law,” said an official of the Housing Ministry, requesting anonymity.
The draft provides for the setting up of a regulatory authority with which each real estate promoter will have to register to develop any large colony or apartment.
The proposed model legislation has teeth too: Punishment for non-registration under Section 3 includes “imprisonment for a term which may extend to three years, or a penalty”. Once registered, the promoters will have to upload all project details on the website of the regulatory authority.