By Andrew Batt:
India’s government yesterday approved the Real Estate (Regulation and Development) Bill 2013 with the aim of providing greater transparency in the sector.
Developers who publish misleading property advertisements could face jail. Project launches can now only take place once clearance has been obtained from all relevant authorities. No sales are now allowed before approvals have been obtained.
The Bill dictates that details of all real estate projects must be published on a website prior to the start of construction, and real photographs of the site must also be displayed.
Separate bank accounts must also be established for each project to ensure monies are not diverted elsewhere. Penalties for first time offenders are up to 10 percent of the project cost. Repeat offenders will face jail.
Real estate agents will also be required to register with a new regulator which will be established in every state.
Andrew Batt, International Group Editor of PropertyGuru, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
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