The municipal administration and urban development (MA&UD ) department has urged the Centre to make the proposed Real Estate (Regulation and Development) Bill,2011 stringent by extending it to even small real estate ventures and development projects that come up in 500 square (sq) metres with a view to protecting gullible citizens from being cheated.
The draft bill,prepared by the Union ministry of housing and urban poverty alleviation (Housing section ),has been sent to state governments,inviting suggestions and objections.The state governments have to make necessary arrangements and put in place a mechanism once the bill is passed by Parliament.The bill is likely to be placed before the House in the budget session.
The purpose behind the bill is to establish a regulatory authority for regulation and planned development in the real estate and infrastructure sectors and ensure transparency in sale of plots and construction.While protecting the interest of customers and property buyers,several clauses have been incorporated to punish promoters who cheat customers.
The Greater Hyderabad Municipal Corporation (GHMC) and Hyderabad Metropolitan Development Authority (HMDA),which have been asked to give their suggestions and opinions,said the minimum area,which falls under the ambit of registration with the regulatory authority,should be 500 sq metres instead of the existing 4,000 sq metres as proposed in the bill.
Ninety per cent development projects like apartments come up on a plot area ranging between 500 sq mts and 4,000 sq metres.Only a few projects come up in above 4,000 sq metres in the state.We have recommended that the minimum plot area for registration should be 500 sq metres, a senior MA&UD official said.
As per the draft bill,development of immovable projects which were cleared one year prior to the commencement of the Act would be covered.However,the MA&UD officials said the Act should be made applicable to projects which are built after it comes into effect.Also,if development of an immovable property is taken up in a phased manner,each phase would be considered a separate project and the promoter has to seek registration under the proposed Act.No promoter,the draft said,should issue advertisements,print prospectus or invite bookings without obtaining the certificate of registration.
The MA&UD department officials sought modification in the definition of the agency and exempt government projects as the state constructs houses for the poor under VAMBAY,Indiramma houses under Jawaharlal Nehru National Urban Renewal Mission
(JNNURM),governmentsponsored housing projects like Rajiv Gruhakalpa and Rajiv Swagruha. Once the Parliament passes the Real Estate (( Regulation and Development) Bill,the state government would have to notify establishing the Real Estate Regulatory Authority with a chairperson and at least two full-time members.
Several points suggested by the MA&UD were incorporated in the bill while preparing the draft, another official said.NEW ATTRACTION: Chief minister N Kiran Kumar Reddy inaugurates Shilparamam night bazaar in Madhapur on Thursday
Comment : We feel there will be at least 25% increase in rates for New Projects once the Bill comes into effect. The reason... the initial investment by developers will skyrocket and smaller players with better efficiency and thinner margin (but with not enough funds) will not be able to launch projects. There will be reduction in project launches, this will also cause higher demand and higher price. Eventually all buyers will lose hard cash. And Fraud builders will continue their business...they will always find ways... Keyword Tags Hyderabad News,Real Estate Regulator
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