New provisions aiming at safeguarding the interests of a buyer will be shortly introduced by the government. Now builders cannot exaggerate the details of their projects and should say the correct offering. A regulatory body will be drafted that will be the monitoring the builders to verify if they have obtained all the necessary clearances. All these steps are taken to improve the dealings in home buying and prevent fraud in the property transactions.
All these facilities will be loaded in the system with the passing of the Real Estate Bill (planned to be sanctioned in the coming budget session). A new proposal is designed in a way that the developers will have to pool 70% of funds in the bank before selling the homes. Thus the pressure will not be imposed on the buyers.
The real estate regulator in every state will ensure that registration of every project is done by the builder and all the necessary clearances have been taken. According to the bill’s provisions if the developer fails to produce all clearances, then three years imprisonment or fine upto 10% of project cost will be imposed.
On the contrary side, the builders have raised their voice in a meeting with housing minister. Associations like CREDAI and NAREDCO have also supported builders commenting that the provisions are unnecessary and irrelevant because transparency in the system is already maintained and full care is taken when it comes to taking clearance.
The government however is looking optimistically for the profit of buyer. As per the government, the bill has the power to decline money laundering and fraudulent cases in the industry.
The provisions mentioned in the papers will reach our hands or just remain inked in the sheets? Only time will tell.