The Ministry of Housing & Urban Poverty Alleviation planned to introduce a single-window system for clearance of all real estate projects across the country, said minister Ajay Maken. This could bring down the average approval time from the current 196 days to 45-60 days.
The proposed real estate regulator will make it mandatory for developers to launch projects only after acquiring all required permissions. According to the Bill, before starting construction the developer will have to submit all relevant clearances to the regulator as well as put up on the company’s website.
The Bill also has tough provision to deter builders from putting out misleading advertisements related to the projects carrying photographs of actual site. Failure to do so for the first time would attract a penalty which may be up to 10 per cent of the project cost and a repeat offence could land the developer in jail, said Maken.
It will also make it mandatory for a developer to maintain separate bank account for every project to ensure that money raised for a particular task is not diverted elsewhere.
The developer will also have to specify an outer time limit for completion of the project to the regulator.
The developer-buyer agreement will also be required to be vetted by the regulator, Maken added.