Housing sector to get infrastructure status to make it affordable to own a home

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PTI: New Delhi, Feb 20 2013, 22:15 IST

passed it will pave the way for the setting up of the Real Estate Regulatory Authority, an industry watchdog that will keep a lease on land sharks and fly-by-night operators.

"There are certain changes in the draft of the Bill and it will be sent to Cabinet for its approval before introducing it in Parliament," said HUPA Minister Ajay Maken.

Ministry has received the suggestions from the real estate developers for certain changes in the draft.

According to the provision of the Bill, builders have to set up a separate escrow account to compulsorily deposit 70 per cent of the funds received from buyers and to ensure that these funds are used for that real estate project only.

Our aim is to bring transparency and accountability in the real estate sector, Maken said.

Once the regulatory authority is established the registration of real estate developers will be mandatory.

Funds collected from buyers for a particular housing project cannot be diverted to other project and the developer will be restricted in announcing new project before getting all mandatory clearances like environment, fire and others.

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