The Real Estate (Regulation and Development) Bill was passed by the Lok Sabha, five days after its passage by Rajya Sabha. The Bill seeks to protect the interest of the home buyers by enhancing transparency and fixing the accountability of developers, brokers and consumers. It would also ensure that customers are treated fairly by ensuring no arbitrary changes in project plans, full disclosure on apartment size and fairer penalty provisions.
The bill defines carpet area as net usable area of an apartment which means now people will be charged only for the carpet area. This comes as a big relief to home buyers as developers today quote on super built up area also know as sellable area which takes into 30-40% area more than flat’s usable area.
The Bill ensures the completion and delivery of flats as strict regulations are imposed on developers for any violations of the Appellate Tribunals or monetary penalties or both.
The bill also mandates that builders deposit 70% of money collected from buyers into a separate account that will be utilised only for construction and payment for land, ensuring that money collected is not diverted to other projects or uses as has been the case with many builders in the past.