New Delhi: The Centre is all set to bring the revised real estate bill. The bill is in the final lap and will get approved by legislation in short time.
The bill aims to shield property buyers from unscrupulous developers and regulate the real estate sector to increase transparency and boost investors' confidence in an otherwise murky industry.
According to the sources quoted by Hindustan Times, the ministry is piloting the crucial legislation that covers both residential and commercial real estate, has modified and sent the revised bill to the cabinet, which is expected to clear it soon.
The bill also allows builders to divert 50 % of the amount collected from a buyer for a specific project to launch other ventures.
According to reports, the original bill barred buyers from knocking on the doors of any other consumer forum to do away with the multiplicity of litigation.
The primary bill drafted by the UPA government mandated that a developer put 70% of the amount collected for a project from the allottees to an escrow account to be used only for construction under that particular scheme.
The clause was aimed at discouraging realtors from diverting consumers' money to launch fresh projects before delivering the ones for which the funds were collected. The real estate lobby was pushing hard for dilution of this provision, sources said.
The bill proposes that builders developing a project where the land parcel exceeds 1,000 square metres will have to register themselves with the regulator before launching or even advertising their venture. Failure to do so will invite a fine of up to 10% of the total project cost.
In the works since 2009, the bill was introduced in the Rajya Sabha by the UPA government on August 14, 2013 and referred to the parliamentary standing committee on urban development.
The committee gave its recommendations many of which have been incorporated by the housing ministry.