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NAREDCO welcomes the new real estate rules notified by Ministry of Housing and Urban Population

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New Delhi: In a bid to provide a fillip to the real estate sector of the country, Ministry of Housing & Urban Population notified Real Estate (Regulation and Development) General Rules 2016. Real Estate bodies across board and especially National Real Estate Development Council (NAREDCO), which is established under the aegis of Ministry of Housing and Urban Poverty Alleviation (HUPA), Government of India, welcomed this move with a happy heart.

As per the new real estate rules, developers will now have to provide additional information like original sanctioned plans, changes made later and fresh timeliness for completion of ongoing projects to buyers and deposit 70 per cent of the unused funds in a separate bank account to ensure project completion. The rules will be applicable to five Union Territories without Legislature — Andaman & Nicobar Islands, Dadra and Nagar Haveli, Daman & Diu, Lakshadweep and Chandigarh. For Delhi, similar rules will be notified later by the Ministry of Urban Development.

Rajeev Talwar, Chairman, NAREDCO, said, “The rules will provide for regular auditing so as to verify the claims made by builders regarding used funds. These changes in the real estate bill will surely help to regulate real estate sector and it will become more consumer friendly. As a real estate body, I thank M Venkaiah Naidu, Minister of Housing and Urban Development for bringing such welcoming changes in the real estate sector rules.”

Further, as per the new rules, for the ongoing projects that have not received completion certificate in specified time, developers have been asked to make public the original sanctioned plans and changes made, total amount collected from allottees, money used, original timeline for completion and the period within which the developer undertakes to complete the project. The rules also state that developers will have to refund or pay compensation to the allottees with an Interest Rate of SBI’s highest Marginal Cost of Lending Rate plus 2 per cent. This is to keep a check on cases where builders have unilaterally altered their original plans so as to maximise their profits.

What more? In pursuance of the assurance given by M Venkaiah Naidu, Real Estate Rules prohibit any discrimination in sale of properties on any ground.

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Talking about all the changes, Parveen Jain, President, NAREDCO, noted, “The new rules will really help in regulating the real estate sector, to improve the sector and also help the helpless consumers who have been harassed so far. The new real estate rules will definitely speed up the real estate reforms and will leave no scope for exploitation and cheating.”

Thus, overall, the Real Estate (Regulation and Development) Act, 2016 (RERA) aims to bring transparency and accountability in the sector. It remains to be seen that what will be the outcome of the new changes. However, going by the general wave, it can be believed that the new rules will definitely change the negative mindset of the customers and establish good faith regarding the real estate sector.

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