Monday, May 16, 2011

Real estate draft Bill.

In order to make the Real Estate Draft Bill a central legislation from being a state matter now, the contour of the Bill has been changed, reported financial daily Business Standard.


The report said that the focus of the revised Bill is now on consumer protection and contractual obligations of developers. The Ministry of Housing and Urban Poverty Alleviation has sought the approval of the Ministry of Law on the proposed legislation.

The law ministry is likely to give its opinion by the end of this month. The concept of a real estate Bill has been around in the government for almost 10 years now, and a draft Bill has been in the making for well over two years.

A senior official in the housing ministry told the newspaper that although the Consumer Act and penal provisions already exists for grievance redressal, these come into the picture only after commitment is made by developers to property buyers.

The disclosures must be made before launching any project, so that consumers are not taken for a ride at a later stage. Also, developers have to register themselves with the regulatory authority.

The newspaper shares that certain clauses have been deleted from the original draft of the real estate Bill in order to move it towards a central legislation. An official confirmed the newspaper that the state-centric issues such as building bye-laws and municipalities had been removed from the new draft. The push now is said to be on consumer protection against fraud, timely completion of projects by developers, and contractual obligations of the builder/developer, the report held.

Courtesy: http://www.moneycontrol.com/news/business/real-estate-draft-bill-revised-to-make-central-legislation_542821.html?utm_source=executive-briefing

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