The parliamentary select committee comprising of 21 members has suggested certain additional consumer centric measures last week. However, the same might not have lived up to the general expectations.
Following were some of the major problems in last version of tabled Real estate bill based on which it was forwarded to Select committee some 3 months back for redressal:
–Builder needs to disclose carpet area but basis of sale could still be super area.
Committee has clarified the explanation of carpet area. It has made clear that internal walls shall be considered as part of carpet area however, external walls shall not be included. There is however no guideline to link sale to carpet area.
–Does not touch force majeure explanation giving enough escape route to builder in case of delays.
Committee has not come up with a guideline restricting misuse of the term. It however has added a stringent provision of 3 years jail or fine of 10 percent of project cost in case of defaults.
–Does not talk about cost escalation or flat area increase and its implication.
–Only 50% compulsory deposit in proposed escrow account which was originally proposed as 70%, implying builders will have enough funds to siphon off.
Remains at 50%. However, while it initially allowed State governments to lower this mandatory deposit further, the same is set to flat 50% now. Builders to get account audited to meet this guideline within 6 months from end of a fiscal year.
–Promoter not held responsible for defects other than those structural in nature (eg. Quality defects).
–Specifically allows minor additions or alterations to plans with potential of misuse.
–Jurisdiction of court other than identified authority and consumer court barred for property cases.
Other than this, the committee has suggested that the new law should cover projects of 500 sqm and more or eight flats thereby bringing small projects within its ambit.
Comments/Feedback invited.Last updated: August 4, 2015 at 17:40 pm