Indian real estate sector to get watchdog soon
The Congress-led UPA government is making final preparations to introduce a Bill to create a watchdog for the country's real-estate sector, Housing Minister Ajay Maken revealed on Sunday.
The Real Estate (Regulation and Development) Bill will be introduced in the Budget session followings its approval by the Cabinet. The
The proposed real estate regulator will make it obligatory for reality developers to acquire all required approvals before announcing the launch of a project. Developers will have to notify the regulator that it has gained all necessary permissions and also put the permissions on their official websites before starting construction.
To deter developers from putting out misleading adverts about their projects, the Bill proposes a fine of up to 10 per cent of the cost of project. A repetition of any such offence could land the builder behind the bars.
Making revelation about the Bill, Mr. Maken also announced that the ministry along with the Reserve Bank of India (RBI) was also planning the Housing Startup Index.
Speaking on the topic, the Minister said, "The index will serve as a tool to reflect the change in housing sector and related industries vis a vis the economy."
In addition, the Ministry has also planned to introduce a single-window clearance system for all real estate projects across India, which could cut the average approval time from the current 196 days to just 45-60 days.