New Delhi: The Union Cabinet today approved the Real Estate Development and Regulation Bill, paving the way for setting up a regulator for the real estate sector. The bill aims to bring control over unscrupulous developers who cheat home buyers of their money with false promises.
The bill provides for mandatory registration of all projects, besides mandatory disclosure of information like details of promoters, layout plan, land status, schedule of execution, status of various approvals and carpet area. All this will be regulated by a TRAI or SEBI like regulatory authority.
The act also enforces the contract between the developer and buyer and provides for quick remedial measures in case of disputes.
According to the new bill, the builders do not need to deposit 70% amount in the account, bringing a relief to cash-striped real estate developers.
The bill was introduced in the Rajya Sabha in August 2013, and then referred to a Parliamentary Standing Committee, which had submitted its report in February 2014.