Indian economy is reviving after the exit of the prolonged fiscal flu that slowed down the economies of the world. Our country is expected to generate growth of 8.5% this financial year i.e. FY 2010-11. The real estate sector has also come out of the hibernation mode and is already moving on the path of progress.
The property prices in metros and tier-II cities have been spiraling up with growing demand for property. Developers are more than happy to renew their pending projects and are even launching many more new ones. From now on, builders need to follow stringent rules aimed at promoting orderly development of the realty sector as well as curbing malpractices. But, many fear that implementation of new regulations is sure to become another reason for price rise.
The Real Estate (Regulation of Development) Act proposes the need for a regulatory authority and an appellate tribunal. This body would have the power to regulate, control and promote planned development, construction, sale, transfer and so on. A website would be maintained enlisting all project details to primarily safeguard public interest by checking fly-by-night operators.
1. The law proposed by Center last year asks developers to compulsorily register their projects. The builders would be required to furnish a bank guarantee of a certain percentage of the project cost to a competent authority. The failure or non-compliance in doing so should attract strict penalties.
2. The law shall make it mandatory for builders to execute a registered agreement prior to selling properties. Time over-runs are not to be shown lenience and so, builders will have to pay penal interest on acceptance of deposit or advance from the buyers.
The above law model is designed in a way that the rights and interests of property buyers are safeguarded.
No comments:
Post a Comment