The Union Cabinet
recently deferred considering a draft law to set up a regulator for the real
estate sector with provisions for jail term for the developer / promoter for
putting out misleading advertisements about projects.
According to a Union
Minister said, "A decision on the
real estate regulator bill has been deferred"
Real Estate
(Regulation and Development) Bill..!
The proposed
regulator also seeks to make it mandatory for developers / promoters to launch
projects only after acquiring all the statutory clearances from relevant
authorities.
It also has
provisions under which all relevant clearances for real estate projects would
have to be submitted to the regulator and also displayed on a website before
starting the construction.
The Real Estate
(Regulation and Development) Bill seeks to to provide a uniform regulatory
environment to the sector.
The Bill has certain
tough provisions to deter builders / promoters from putting out misleading
advertisements related to the projects carrying photographs of actual site.
Failure to do so for
the first time would attract a penalty which may be up to 10% of the project
cost & a repeat offence could land the developer in jail.
Maintain Separate
Bank Account..!
The proposed Real
Estate Bill also seeks to make it mandatory for a developer to maintain a
separate bank account for every project to ensure that the money raised for a
particular task is not diverted elsewhere.
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