New law to cover ongoing realty projects
NEW DELHI: Ongoing real estate projects that have defaulted on timely delivery could come under the purview of the Real Estate (Development and Regulation) Bill once it is enacted.
“Ongoing projects will also come under the new law once it is notified and rolled out. When we frame the rules for the new real estate law, this issue would be mentioned in detail,” urban development minister Venkaiah Naidu told HT.
Sources in the government said projects where homebuyers have paid the lion’s share of the price but the project is nowhere near completion could attract penalties under the new law.
Realty developers’ umbrella body, Confederation of Real Estate Developers’ Association of India (CREDAI), dubbed the move as a “roadblock”.
“This would mean stopping the work and ensuring compliance of ongoing projects with the new legislation. If a project has already been sold to the extent of 50% and construction is underway, it is a practical impossibility to make 50% of the project compliant with the Act,” a statement by the association said. Sources said many projects, especially in Noida and Greater Noida of UP, and some in Bangalore could come under the scanner.
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