More than a month after the Real Estate (Regulation and Development) Bill 2016 (RERA) became an Act on May 1, the Government on Friday formulated guidelines aiming to ensure better safeguard to homebuyers from unscrupulous builders who take homebuyers for a ride.
As per the draft rules, which are now on the website of the Housing and Urban Poverty Alleviation (HUPA) Ministry for public comments, promoters can't discriminate against anyone in the allotment of any apartment, plot or building on any ground such as sex and religion. This has been incorporated further to the assurance of Venakaiah Naidu, HUPA Minister during the debate on the Real Estate Bill in the Parliament, said a senior Ministry official.
"The Rules provide for payments to be made for registration of projects and real estate agents with the regulatory authority, documents and information to be furnished by developers, procedures to be followed for registration, extension and renewal of registration, procedures for filing and hearing of complaints and appeals, appointment and service conditions of the Chairpersons and Members of Real Estate Regulatory Authorities and Appellate Tribunals and their powers etc," said the official.
Also, as per rules, the Real Estate Regulatory Authority has to be set up in States/UTs to ensure availability of information in respect of 60 aspects relating to the promoters and the projects. These relate to the profile of developer of group, track record of promoter, details of past or ongoing litigations relating to real estate projects, apartment and garage related details, location, details of registered agents and consultants, development plan, financials of the promoter, status of project along with that of approvals, contact details , copies of legal title deed, details of encumbrances etc.
To ensure transparency, the promoter will have to upload updates on the webpage of the project, within seven days from the expiry of each quarter, regarding number and types of apartments or plots booked among others.
Fee proposed for registration of projects with the Regulatory Authority is Rs 10 per sq.mt if the plot area is below 1,000 sq.mt and Rs 20 if the area for development is more than that for residential projects and Rs 50 and Rs 100 per sq.mt for commercial projects.
Draft real estate rules also provide for payment of 10 per cent of the estimated cost of the project for compounding of imprisonment of promoter for non-registration of the project or violation of the order of the Real Estate Appellate Tribunal.
Imprisonment of real estate agent and buyer for violating tribunal's order can be compounded upon payment of 10 per cent of the estimated cost of the plot, apartment or building. However, the reasons for imprisonment shall be complied with in one month.
For any delay in payment by the promoter and buyer has been proposed to be the State Bank of India Prime lending Rate plus 2 per cent, as per the draft rules.