“Regulation in real estate is the need of the hour” said Venkaiah Naidu, Housing and Urban Development Minister.
The revision in the bill will provide transparency in transactions to overcome the negative image of the sector due to some unfair practices in some cases.
The sector remained ignored for quite some time now. Earlier the bill was referred to a standing committee after UPA govt proposed it to rajya sabha. The draft Bill has been revised various times since 2009, once the industry opposed it.
The industry has raised concerns over penalties and strict punishments proposed in the bill if the developer fails to meet the terms. The developers can launch his projects only after acquiring all the mandatory clearances from respective departments.
The bill proposes even a jail term for a maximum of three years for developers. It clearly defines the term ‘carpet area’ and preventing private developers from selling houses or flats on the basis of ‘super area’.
The government is in consultation with the Industry as “The escalation of land and building materials prices have made it more out of reach proposition for potential home buyers. On top of it all un-organised developers not fulfilling promises made to end consumers has impacted the trust factor as well. Housing for low income groups is another huge task.