Errant builders could land in jail for repeat violations
Developers must also declare the latest date for project delivery and schedule to the authority. The Bill will define exact area, open space and carpet area, bringing down the curtains on terms like super area and super built-up area used by developers. The Bill proposes penalties on developers violating fair practices, Maken said.
Under the new law, agreements between buyers and developers must be vetted by the regulator. This will give certainty to consumers and make agreements clearer and less misleading.
“There are provisions to ensure timely completion of the project and prevent diversion of funds, which is a usual practice among developers,” Maken added.
The Bill will also bring in accountability and fast-track dispute resolution regarding real estate transactions. The Bill will be tabled in the ongoing Budget session of the Parliament. The ministry wants a regulator with enforcement powers, both curative and preventive, which are not provided in consumer laws.
“We want the regulator to have powers to give directions for specific performance, powers to impose penalty for non-registration of projects, including imprisonment of up to three years for repeated violations and also to impose penalty in case of other contraventions. This is the first time any such powers will be given in this sector,” Maken said.
The Bill will also propose that advertisements can be launched only after a project is registered. “There are
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