The Real Estate Bill would prohibit unaccounted money from being pumped into the sector and as now 70 percent of the money has to be deposited in bank accounts through cheques.
Zee Media Bureau
New Delhi: The long pending Real Estate Bill, which aims to protect the interests of buyers and bring more transparency to the sector was on Tuesday passed in Lok Sabha.
It is touted as a major reform measure to regulate the vast real estate sector and bring order in it.
The Bill would prohibit unaccounted money from being pumped into the sector and as now 70 percent of the money has to be deposited in bank accounts through cheques.
The Bill also provides for imprisonment of up to three years in case of promoters and up to one year in case of real estate agents and buyers for any violation of orders of Appellate Tribunals or monetary penalties or both.
It proposed that a minimum of 70 percent collections from buyers should be deposited in separate escrow account to cover cost of construction and land.
It will help establish state-level Real Estate Regulatory Authorities (RERAs) to regulate transactions related to both residential and commercial projects and ensure their timely completion and handover, the Minister said.
Appellate Tribunals will now be required to adjudicate cases in 60 days as against the earlier provision of 90 days and Regulatory Authorities to dispose of complaints in 60 days while no time frame was indicated in earlier Bill, he said.
With Agency Inputs