March 10: The much-awaited Real Estate (Regulation & Development) Bill 2016 has been passed in the Rajya Sabha on Thursday which is to be applicable retrospectively.
As a relief, this bill seeks to protect interests of a large number of aspiring house buyers.
According to the session, municipal bodies and government projects will not to be covered by the bill.
As a bright spot, the bill defines carpet area as net usable floor area of an apartment. Construction will start only after getting statutory clearances.
Furthermore, the session sated that misleading advertisements to be made punishable offence where first-time offenders will be fined 10% of project cost and repeat offenders could face jail term.
All ongoing projects are to be complied with the bill and changes in ongoing projects to be vetted by 2/3rds of the home buyers.
The Bill was first introduced by UPA government in Rajya Sabha in 2013.
Prime Minister Narendra Modi was keen on passing the bill which aims at curbing black money in the real estate sector and putting in place a grievance redressal system for home buyers.
With its eyes on the middle class, the government wants to make the sector consumer-friendly by bringing in transparency in transactions to help “genuine” buyers.