New Delhi: The Union government on Monday notified Real Estate (Regulation and Development) (General) Rules, 2016 which stipulate real estate developers furnish additional information regarding the ongoing projects besides depositing 70 percent of unused funds in a separate bank account to ensure their completion.
Under the new rules, the developers will also be required to refund or pay compensation to the allottees with an interest rate of State Bank of India’s highest marginal cost of lending rate plus two percent within 45 days of the payments becoming due.
Notified by the Ministry of Housing and Urban Poverty Alleviation, the Rules are applicable to the five Union Territories of Andaman & Nicobar Islands, Dadra & Nagar Haveli, Daman & Diu, Lakshadweep and Chandigarh.
The developer, within three months of applying for registration of a project with the Real Estate Regulatory Authority shall deposit in a separate bank account, 70 percent of the amount collected and unused for ensuring completion of ongoing projects, said a ministry statement.
The developers have also been mandated to upload various information about the project including number and type of apartments or plots, garages booked, status of the project with photographs floor-wise, status of construction of internal infrastructure and common areas with photos, etc.
The Rules also provide for compounding of punishment with imprisonment for violation of the orders of Real Estate Appellate Tribunal against payment of 10 percent of project cost in case of developers and 10 percent of the cost of property purchased in case of allottees and agents. Compliance with reasons for punishment shall be complied within 30 days of compounding.
Under the Rules, adjudicating officers, Real Estate Authorities and Appellate Tribunals shall dispose of complaints within 60 days.
Real Estate Regulatory Authorities have been mandated to publish on their websites the information relating to profile and track record of promoters, details of litigations, advertisement and prospectus issued about the project, details of apartments, plots and garages, registered agents and consultants, development plan, financial details of the promoters, status of approvals and projects etc.
All states and other union territories are also expected to notify the rules. As per the provisions of the Real Estate (Regulation and Development) Act, 2016, Real Estate Regulatory Authorities are required to be put in place by April 30, 2017 before full Act is brought into effect, the next day.