New law to cover on­go­ing realty projects

Hindustan Times ST (Mumbai) - HT Navi Mumbai Live - - FRONT PAGE - Saub­hadra Chat­terji saub­­terji@hin­dus­tan­

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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