Govt drafts Regulation of Development Bill
In a view to protect consumer interests and promote planned and healthy real estate development, the Ministry of Housing and Urban Poverty Alleviation has drafted a Model Real Estate (Regulation of Development) Bill. The Bill talks about establishing a Regulatory Authority and an Appellate Tribunal to regulate and promote planned construction, sale, transfer and management of colonies, residential buildings, apartments and other similar properties. The Ministry feels the Bill will not only protect the interest of consumer but also facilitate smooth and speedy urban construction.
Another critical aspect of the Bill is that it talks about having a provision of compulsory registration with the Regulatory Authority for development of land into a colony of plots or construction of a building or conversion of any existing building into apartments for the purpose of marketing all or some of the apartments.
The Bill also says that no promoter shall issue or publish an advertisement or prospects, offering for sale any plot, building or apartment, or inviting persons who intend to take such plots, buildings or apartments to make advances or deposits without registering with the Regulatory Authority and without first filing a copy of the advertisement or prospectus in the office of the Regulatory Authority.
This information was given by Saugata Roy, Minister of State, Urban Development in the Parliament.