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Friday, June 24, 2016

NDA Govt Unveils Real Estate Draft Rules for Union Territories Friday June 24,2016

The NDA Govt on Friday June 24,2016 unveiled draft rules for five Union Territories under the Real Estate Act which seeks to regulate the real estate sector, bring in transparency and help protect consumer interests.

The Housing and Urban Poverty Alleviation Ministry has posted the draft rules on its website for UTs without legislature -- Andaman and Nicobar Islands, Chandigarh, Dadra and Nagar Haveli, Daman and Diu, Lakshadweep -- and sought objections and suggestions from public in two weeks, an official release said.

The Real Estate (Regulation and Development) Bill, 2016 was passed by Parliament in March.
Non-discrimination against anyone in allotment of apartment and deposit of 70 per cent money realised by promoter in a separate account for meeting construction and land cost are some of the key highlights of the draft rules.

As per the draft, interest to be paid by promoters and allottees for delays would be SBI Prime Lending Rate plus 2 per cent, the release said.

"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," it said.

For commercial projects, however, the registration fee will be Rs 50 per sq mt for up to 1,000 sq mt and Rs 100 per sq mt beyond that.

The promoters are also required to submit information on 60 aspects about themselves and their projects, according to the draft rules.

The draft rules also suggest that the Real Estate Regulatory Authority be set up in states/UTs to ensure availability of information in respect of 60 aspects relating to promoters and their projects.

These relate to the profile of developer, track record of promoter, details of past or ongoing litigations relating to real estate projects, apartment and garage related details, location, and details of registered agents and consultants, among others.

The promoter will also be required to upload updates on the web page of the project, within seven days from the expiry of each quarter, regarding number and types of apartments or plots booked and status of construction of each floor with photographs, among others, the release said.

Promoters of all ongoing projects which have not received completion certificates are also required to apply for registration of projects within three months and disclose all relevant information including the size of the apartment based on carpet area.

The draft 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, it said.

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.

After eliciting public comments over the next two weeks, the draft rules will be discussed with officials of the five UTs and further to revision if required, the rules will be sent for legal vetting, the release said, adding thereafter, the rules will be notified.

The rules will also be referred to states and UTs for consideration and adoption to save time, an official said, adding that for Delhi, Ministry of Urban Development is responsible for notifying the rules.

The Urban Development Ministry could also consider adoption of the rules framed by HUPA Ministry in due course, he added.

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