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Know all about home buyers' Real Estate Bill: Industry also welcomes it
Yesterday the upper house of the Parliament passed long-awaited Real Estate Bill as the Congress and other opposition parties supported it. Now once the President signs it, the bill will become law. Home buyers as well as developers have welcomed the passing of the bill.

It is being said that the bill will hugely benefit the home buyers, who often find themselves in trouble because of builders illegal demands, sudden change in layout plan of the project without their consent, indefinite delay in handing over the projects, exorbitant interest rate being levied by the builders as a penalty in case buyers fail to pay for their flats on time. 

The key features of the bill, which are supposed to be beneficial for the home buyers are as follows:

1. Developers could be imprisoned up to 3 years if they are found guilty of fraud.

2. Developers have to deposit 70 per cent of fund it receives for a particular project in bank within 15 days. This is to ensure that they don't use it for any other purpose.

3. Home buyers will be charged on the basis of carpet area, not on the basis of super area.

4. In every state a Real Estate Regulatory Authority will be set up to address consumers' complaints. Authority needs to resolve the complains in 60 days time.

5. Developers cannot change project plan until and unless two-third of home buyers agree to it.

6. Even after handing over the projects to buyers, builders need to take care of structural damages for the next 5 years.

7. It is now mandatory to register projects in each state.

8. Builders cannot advertise any project with registration. And there is provision in the bill to punish them in case they come out with false/confusing advertisements to attract home buyers.

9. In the old bill projects with only 1000 square meter area were included, but in the new bill projects worth 500 square meter area are also included.

10. Along with the residential projects, commercial projects also come under the bill.

11. After launching their projects, developers have to give full information about them on their websites. They also need to update their consumers on regular basis.

12. Developers need to insure the plots for their projects in the interest of home buyers.

Industry body FICCI called the passing of the Real Estate Bill as a landmark step towards enhancing the credibility of realty sector by bringing in transparency and accountability in execution of projects.

FICCI's president, Harshvardhan Neotia in a press statement said, "I hope this bill will put in place an effective regulatory mechanism that would safeguard the interest of consumers as well as provide protection against fly by night operators. The passing of bill should enable timely approval and execution of projects, which will raise the confidence of consumers and also give a huge boost to the growth of real estate sector."

Another industry body ASSOCHAM while reacting to the bill said that it would help in resolving key issues that are hampering the growth of the real estate sector.

ASSOCHAM's president, Sunil Kanoria in a statement said, "This bill will lead to institutional reforms in land acquisition, approval processes and taxation that are much needed to expedite development of affordable housing."

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