Errant builders could land in jail for repeat violations
Many policymakers say the real estate sector’s opaque practices have made it a destination for unproductive and speculative investments meant to beat inflation. The sector is also blamed for widespread asset undervaluation for tax evasion.
“We have laid out in the Bill that projects can be launched only after all clearances are obtained. This will reduce project delays due to delays in obtaining environment and land clearances,” Maken told FE.
The Real Estate Regulation and Development Bill will mandate developers to keep around 70% of funds raised from buyers for a project in a separate account, to be utilised only for that particular project.
Maken told FE that the Bill might, however, have relaxations on the limit of 70% depending on the project location and the city. “There are places where land cost is very high and construction cost is low and vice versa. To address such issues, there might be location and land cost-based fund reservation limits,” Maken added.
FE had reported earlier that the housing ministry had pitched for making it mandatory for promoters
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