New Delhi: A number of people who aspire to own his dream house but eventually end up getting cheated by fly-by night developers. Their woes are finally going to be over soon as the government is planning to introduce stringent laws to regulate the real estate sector.

In a bid to bring transparency and ensure accountability in land selling and housing transactions, the Central Government is going to bring a concrete law to set up a Real Estate Regulatory Authority under the Real Estate (Regulation and Development) Bill, 2011. The proposed authority will be set up in every state.

Announcing the move, Union Minister for Housing and Urban Poverty Alleviation Kumari Selja made the Bill draft public.

Registration of builders, adherence to approved plans and refund of money in cases of default will become mandatory under the new law. Once the law is enforced, it will be mandatory for every promoter and builder to register the real estate project and obtain a registration certificate from the proposed authority before starting the construction.

In a move to bring accountability on the part of the developers for the customers, a Real Estate Appellate Tribunal will also be established. The tribunal will address the complaints and impart justice to the customers. It will also have the powers to impose penalty on faulty promoters and to direct them to refund the money that they have charged from the consumer.

As per the provisions of the Bill, during the registration process the developers will have to deposit one part of the total amount going to be expensed on the project with the authority. This money can be later used by the developer for the project.

Asked about the possibility of criticism from the sector of the proposed Bill, the Minister said that the government is geared up to bring a strong law to regulate the real estate sector and curb the irregularities in it. Maintaining her rigid stand she said “Suggestions will be welcomed. We are looking forward to bring an effective bill.”

(JPN/Bureau)