Home buyers to get more rights
The government unveiled draft pro-consumer real estate rules on Friday that stipulate timely compensation for project delays and a stringent antidiscrimination clause, aiming to shield millions of home buyers from unscrupulous practices in a largely unregulated industry.
The proposed rules under the Real Estate (Regulation and Development) Act, 2016, set a 45-day deadline for the promoter to refund the home buyer, along with applicable interest and compensation, in case of any delays.
The draft rules — which spell out how a law will be implemented –bar builders from discriminating on any grounds. “Discrimination on the basis of religion, vegetarianism or non-vegetarianism and even sexual orientation will be prohibited,” officials said.
Under the rules, both the promoter and buyer will have to pay compensation in case of delay or default of payment, respectively. The rate of interest will be two percent higher than the SBI’s benchmark interest rate, which is used by the bank to formulate lending rates.