In order to protect home buyers as well as boost investments in the real estate industry, the Cabinet approved 20 major amendments to the real estate regulatory Bill that seeks to
These changes were made based on the recommendations of a Rajya Sabha committee that examined the Bill pending in the upper house of Parliament.
The amendments brings new changes in the approval of a project. If a project of at least 500 sq metres of area or with eight flats will have to be registered with the proposed regulatory authority, instead of the minimum size of 1,000 sq metres suggested earlier, bringing a larger number of projects under the regulator’s ambit.
Builders will have to deposit at least 70% of the sale proceeds, including land cost, in an escrow account to meet construction cost, compared with the earlier proposal for 50% or less, and pay interest to home buyers for any default or delays at the same rate they charge them. Builders will be liable for structural defects for five years, instead of two years earlier.