Six loopholes in Realty Bill
On Wednesday, January 11, the Ministry of Housing and Urban Poverty Alleviation invited comments on the draft Real Estate Regulation Bill (RERB). In Maharashtra, the state government has released a draft version of its own real estate regulation Bill, the very first state government to take the step.
In this backdrop, it would be instructive to take a look at the draft legislation once again. There are some loopholes in the legislation that need to be examined
thoroughly so that the interest of the buyer is protected.
SIX AREAS OF CONCERN
A lot has been said and written about the provisions of the Bill and its benefits. Even as the intent of the Bill is laudable, there remain some concerns arising out of its provisions that need to be examined in detail.
Plot Size: The provision of minimum plot size could potentially create problems. The proposed minimum of 4,000 square metres to be covered under the legislation leaves out a substantial portion of the market unregulated. Let us look at three examples of how this can be circumvented:
Case 1: Developer “A” has, say 3,800 sq mt (40,888 sq ft) plot to develop. He can carry out everything as he likes as he is out of the purview of this regulation. Most standalone projects, and most of the redevelopment projects are under this segment and also the subsequent litigations. This could also lead to unauthorised development in tier-II and tier -III cities and towns where local forces may prevail more than laws.
Case 2: Developer
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