Union Cabinet approves Real Estate bill ammendment
15-Dec-2015
In a previous post we had discussed the need to Regulate Real Estate in India. We are happy to see this slowly becoming a reality. There were several points of contention in the Real Estate bill, first proposed in 2013, and the Union cabinet has announced various amendments. Highlights below:
We now await for the bill to be passed in the Parliament.
- Applicable for both commercial and residential real estate projects.
- Establishment of a 'Real Estate Regulatory Authority' in States or Union Territories (UTs) to regulate real estate transactions.
- Mandatory disclosure of all registered projects,
- Compulsory for builders to deposit 70% of the amount raised from buyers into an escrow account within a period of 15 days to cover the construction cost of the project. This prevents the builders from using these funds elsewhere.
- Jail term of up to three years or penalty, or both in case of builders.
- Promoters are barred from changing plans and design without the consent of consumers.
We now await for the bill to be passed in the Parliament.
