Real Estate Regulatory Authority: Central Govt. Allows States Set up Own Grievance Redressal Mechanism..!

Buckling under pressure from states, the Central Govt. has decided to allow them to set up their own grievance redressal mechanism to protect property buyers' interests from unscrupulous Realtors.

In a U - turn, the Housing & Urban Poverty Alleviation ministry, which has finalized the draft of Real Estate Regulatory Authority Bill, has dropped the original provision to set up a central real estate appellate tribunal.

Apprehending that the bill might face opposition over this clause, the ministry has decided to allow states to set up their own appellate authority.

The Housing & Urban Poverty Alleviation ministry had earlier received many representations from states demanding to set up their own grievance redressal mechanism.

The tribunal's role will be to adjudicate any dispute between a developer &  an allottee as also between the developer and the real estate regulatory authority.

Own Appellate Tribunal..!

 According to a ministry official,  “We have agreed to the states' demand to set up their own appellate tribunal”

The Real Estate Regulatory Authority draft bill is likely to come up for cabinet approval soon. The original bill has gone through many changes over the past year to make it palatable to states, including Uttar Pradesh, West Bengal, Tamil Nadu & Chhattisgarh, which had opposed it on the ground that it infringes on the federal structure.

The bill proposes setting up of a real estate regulatory authority at every state.

All such builders / promoters / developers -  developing a project where the land exceeds 1,000 square metre - will have to register themselves with the body before launching or / even advertising their project.

Failure to do so will invite up to a maximum 3 years imprisonment or fine of up to 10 per cent of the total project cost.

The developer will also have to submit project details including approved layout plan, timeline, cost & the sale agreement that prospective buyers will have to sign to the proposed regulator.  Only developers / promoters who fulfil this disclosure clause would be permitted to advertise their project to prospective buyers.

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