GOVERNMENT OF INDIA
MINISTRY OF HOUSING AND URBAN POVERTY ALLEVIATION
UNSTARRED QUESTION NO. 3234
TO BE ANSWERED ON DECEMBER 15, 2016
STEPS TAKEN TO SAVE THE CAPITAL OF BUYER FROM BUILDERS
No. 3234 SHRI MAHENDRA SINGH MAHRA :
Will the Minister of HOUSING AND URBAN POVERTY ALLEVIATION be pleased to state:
(a) whether Government is aware that builders are raising money from needy people under various schemes without getting a no-objection certificate from the local administration;
(b) whether it is also a fact that builder are collecting the lifetime earned money of the people;
(c) if so, whether Government is of the view that the money of the buyers is safe in the hands of builders; and
(d) if not, how Government would save the capital of buyer in the hands of builders, the details thereof?
THE MINISTER OF STATE IN THE MINISTRY OF HOUSING & URBAN POVERTY
(RAO INDERJIT SINGH)
(a) to (d): ‘Land’ and ‘Colonisation’ are State subjects, therefore it is the responsibility of States to address such issues. However, in order to provide a uniform regulatory environment to protect consumer interests, help speedy adjudication of disputes and ensure orderly growth of the real estate sector, Government of India enacted the Real Estate (Regulation & Development) Act, 2016. This Act was passed by the Parliament and its specific Sections were notified with effect from 01st May, 2016. As per section 84 of the Real Estate Act, 2016, ‘Rules’ are required to be notified by the ‘appropriate Government’ within six months of its commencement. Ministry of Housing and Urban Poverty Alleviation being the ‘appropriate Government’ for UTs without legislature, has notified the Real Estate (Regulation and Development) (General) Rules, 2016 and the Real Estate (Regulation and Development) (Agreement for Sale) Rules, 2016 on 31.10.2016.
All the State Governments are similarly required to frame Rules under this Act and also establish the Real Estate Regulatory Authority and Appellate Tribunal, to regulate and develop the real estate sector, for their respective States. Governments of Uttar Pradesh, Gujarat and Madhya Pradesh have notified the sub-ordinate Rules under the Real Estate (Regulation and Development) Act, 2016 within the prescribed time limit. Ministry of Urban Development has also notified the sub-ordinate Rules under the Real Estate (Regulation and Development) Act, 2016 for UT of Delhi. State Government of Haryana has decided to appoint an interim regulatory authority till a permanent arrangement is made.
Under Section 4 of the Real Estate (Regulation and Development) Act, 2016, it is mandatory for promoters of real estate projects registered under the Act to deposit 70 per cent of the money collected from the buyers in a separate account for the purposes of construction and land cost.
Further, as per the Section 18(1) of the Real Estate (Regulation and Development) Act, 2016, an allottee who does not intend to withdraw from the delayed project, shall be paid, by the promoter, interest for every month of delay, till the handing over of the possession, at such rate as may be prescribed.
Do you think CBDT should extend Tax Audit Report and relevant ITR Due Date? Please Comment, Vote, Retweet and Like.— Tax Guru (@taxguru_in) September 18, 2018