New Delhi: The government today tabled the Real estate regulation development bill in Rajya Sabha, which provides for setting up of a Real estate Regulatory Authority in all states and union territories within one year of the Act coming into force.
The Bill will be called Real Estate (regulation and development) bill 2013.
No promoter shall book or sell any plot/apartment or building in any real estate project without registering with the Real Estate Regulatory Authority.
The registration shall be compulsory, if the project involve more than 1,000 aq meter of land and/or more than 12 residential flats.
The promoter shall sign a declaration supported by affidavit stating (a) he has legal title on land (b) the land is free from all encumbrances and (c) the likely period of time within which he undertakes to complete the project.
The amount realised by the promoter for that project shall be deposite in a separate account maintained in the bank. Any real estate promote without registration cannot facilitate sale or purchase of plot/flat.
If promoter fails to complete the project on time, he shall be liable to return the money to allottees with interest on demand.
A Real Estate Appellate Tribunal will also be set up.
If a promoter fails to comply with the provisions of the Act, he/she shall be liable to 10 per cent fine and imprisonment upto three years.