Centre notifies Real Estate Rules

According to the new rules, notified by the Ministry of Housing and Urban Population, developers will have to furnish additional information regarding the ongoing projects for the benefit of the buyers besides depositing 70 per cent of the unused funds in a separate bank account to ensure their completion. These Rules were required to be notified on October 31, as stipulated in the Real Estate (Regulation & Development) Act, 2016 that was partly brought into effect on May 1, this year

With respect to the ongoing projects that have not received completion certificate in specified time, developers will have to make public the original sanctioned plans with specifications and changes made later, total amount collected from allottees, money used, original timeline for completion and the time period within which the developer undertakes to complete the project, duly certified by an Engineer/Architect/practicing Chartered Accountant. Promoters shall also declare size of the apartment based on carpet area, even if it was earlier sold on any other basis. 

For registration of projects with the authorities, developers will be required to submit authenticated copy of PAN card. Promoters also have to declare information regarding the number of open and closed parking areas in the project. Promoter shall upload all information on the webpage of the project, within 15 days of expiry of each quarter. 

To incentivise registration of projects and Real Estate Agents with Regulatory Authorities, fee for the same has been reduced by half based on suggestions from promoters for reduction of fee. Developers will also be required to refund the allottees with an interest rate of SBI’s highest marginal cost of lending rate plus 2 per cent in case of delay in completing the project.