According to the bill, builders will now have to register all projects on plots measuring 4,000 sq metres or more with a regulatory authority. Projects can be launched only after securing all the statutory clearances from authorities and the bill also punishes builders for misleading customers through false advertising.
Interestingly, repeated failure of the builders to comply with the new norms will land them into jail. First or second failure will just attract penalties up to 10 per cent f the project cost.
The bill also makes it mandatory for the developer to maintain a separate bank account for every project to ensure that the money raised for a particular task is not diverted to other projects. Unauthorized real estate agents will be dealt with strongly and they will have to first get themselves registered with real estate regulator authority.
There is clarity on the term "carpet area" and that would prohibit private developers from selling houses or flats on the basis of the ambiguous term super area.