Nod for Bill to create real-estate watchdog - Hindu Business Line

Aimed at protecting consumer interests New Delhi, June 4:   The Cabinet on Tuesday approved the Real Estate Regulation and Development Bill that will enable the setting up of a regulator. Widely seen as a measure to protect buyers' interests, the Bill will ensure speedy dispute resolution, and envisages imprisonment for realtors who lure consumers through misleading advertisements. The Government intends to present the Bill during the monsoon session of Parliament in August. Misleading ads The Bill has been languishing since 2007 due to pressure from the real-estate lobby which has been opposing the proposed law. Key aspects of the draft Bill include punishment for selling a project without registration and also putting out misleading advertisements. The proposed Real Estate Regulation may include imprisonment up to three years or penalty of up to 10 per cent of the estimated cost, or both. The proposed Bill will not apply to commercial construction. It will mandate that private builders sell houses in residential projects on the basis of carpet area or built-up area, instead of the vague 'super area'. The proposed piece of legislation seeks to make it mandatory for a developer to maintain a separate bank account for every project to ensure that the money raised for one project is not diverted. The law suggests that the cost of construction for a particular project will have to be maintained as a separate account. Statutory clearances There is also a provision to make it mandatory for developers to launch projects only after getting all statutory clearances. Under the new law, builders will be able to sell property only after getting all clearances. Developers will be barred from collecting money from buyers before obtaining all the permits necessary to start construction on the project. The Bill also proposes that the buyer should have a right to get refund with interest, in case of delay. bindu.menon@thehindu.co.in via Business - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNE4kWz8k6jx1n4F0RzxtNuu3Ns6sw&url=http://www.thehindubusinessline.com/industry-and-economy/real-estate/nod-for-bill-to-create-realestate-watchdog/article4782014.ece

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