Real Estate Regulation Bill in India: Major Highlights

The much awaited Real Estate (Regulation and Development) Bill to regulate real estate sector in India got approved by the cabinet in the month of June 2013 and has several provisions which are highly beneficial for property buyers in India. 

Considering the sensitivity of the sector, the proposed bill is quite a stringent one having provisions like a jail term of up to three years for developers who make offences like putting up misleading advertisements about projects repeatedly.

The major highlights of the bill are:

  • The bill seeks to provide a uniform regulatory environment to the sector.
  • Developers can launch projects only after acquiring all statutory clearances from relevant authorities. All relevant clearances for real estate projects would have to be submitted to the regulator and also displayed on a website before starting the construction
  • Builders and developers who become repeat offenders in terms of displaying misleading ads may even face a jail term of up to three years. 
  • The proposed legislation has tough provisions to deter builders from putting out misleading advertisements related to the projects carrying photographs of the actual site. Failure to do so for the first time would attract penalty which may be up to 10 per cent of the project cost and a repeat offence could land the developer in jail.
  • The legislation would make the concept of super area - which is often used to mislead owners - virtually non-existent.
Use the following link to download the details of the bill in PDF: Real Estate Regulation Bill in India 2013 pdf

1 comment: