Some of the ongoing real estate projects that have defaulted in timely delivery may come under the scanner of the new Real Estate (Development and Regulation) Bill once it is enacted.
“Ongoing projects will also come under the new law once it is notified and rolled out. When we frame the rules for the new Real Estate Law, this issue would be mentioned in details,” Urban development minister Venkaiah Naidu told HT.
Sources in the government said that projects where homebuyers have paid the lion’s share of the price but the project is nowhere near completion, may attract penalties under the new act.
The developers’ umbrella body, Confederation of Real Estate Developers’ Association of India (CREDAI), however, dubbed the move as a “roadblock”.
“This would mean stopping the work and ensuring the compliance of ongoing projects with the new legislation. If a project has already been sold to the extent of 50% and construction is underway, it is a practical impossibility to make 50% of the project compliant with the Act,” a CREDAI statement said.
Sources said many projects, especially in Noida and Greater Noida of Uttar Pradesh and some projects in Bangalore may come under the scanner.