The Union Cabinet yesterday passed a Bill to regulate the activities of the builders in the real estate business to safe guard the interests of the buyers.  Main features of the Bill are,

1. The builders should compulsorily register with the regulating authority and the authority should give their consent if everything is found in order within 15 days.  

2. All the details of permissions should be submitted to the regulatory authority appointed to monitor the builders' activity before starting the project.  And also the details should be placed on the website.

3. The building activity should be started after getting an approval from the regulating authority.

4. The selling should not be started until the building activity takes place.  They should not accept any amounts from the buyers before getting the permission from the regulating authority.

5. Builders who give wrong information about their project will face a jail sentence as per the proposed Bill.  

6. The developmental activity should be taken up only after getting all the required permissions to start the project.  

7. If the builders advertise with wrong photographs and information about the project they will face the charges.  For the first time they will have pay a penalty up to 10% and for the violation from second time onwards the builder will be sentenced jail.

8. Apart from paying the penalty and undergoing the jail sentence, they will be directed to repay the deceived buyers along with interest on it.

9. A separate Bank Account has to be maintained for each building project which should be used for the purpose the money for which it is taken.  The funds under any circumstances should not be diverted to other purposes.

10. Builders should keep aside 70% of the money received from the buyers in the Bank Account to facilitate return of the money.

11. A buyer can claim his total money with interest back from the builder if the project is not completed within the stipulated period as per the agreement.  

12. Builders also deceive the buyers by the difference between the built up area and carpet area.  The Bill clearly defines the carpet area to avoid misunderstanding.  

13. The Builders should not take more than 10% of the cost from the buyers without a written agreement.  

14. A Real Estate Appellate Tribunal with a sitting or a retired judge will be established to look in to the disputes.  

15. A National level advisory committee also will be established to look in to the important issues arise in the disputes to put forth and bring them to the notice of the Ministry of House Building.

The Cabinet expressed that the Bill safe guards the interests of the general public who in the past were deceived by the builders as per the complaints received in various cases.  

(AW-SriJa)