REAL ESTATE REGULATOR

• A Bill providing for setting up a regulator for the real estate sector and having provisions like a jail term of up to three years for developers issuing misleading advertisements about their projects repeatedly has been approved by the government.
• The Bill: The Real Estate (Regulation and Development) Bill
• It seeks to provide a uniform regulatory environment to the sector. It also intends to make it mandatory for developers to launch projects only after acquiring all statutory clearances from the authorities concerned.

 OBJECTIVE:

•  The objective of the Bill is to protect interests of consumers, promote fair play in real estate transactions and ensure timely execution of projects.

 HIGHLIGHTS:

• The Bill makes it mandatory for builders to clarify the carpet area of the flat. This would be made uniform for the entire country.
• The Bill 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
• Failure to do so for the first time will attract penalty up to 10 per cent of the project cost, while a repeat offence can land the developer in jail.
• The importance of the regulatory Bill cannot be underestimated. Real estate is a sector that is beset with many malpractices and is one sector that attracts and generates maximum black money, leading to an astronomical rise in land and housing prices in urban India. The Bill will usher in transparency in the construction industry; ensure fair practices and accountability of builders and fast-track dispute resolution. Builders as well as property dealers will have to be registered. They will be able to launch projects only after getting all clearances. Misleading advertisements or delays in construction can invite a jail term or penalty.