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Real Estate Bill seeks to protect middle class interests: Ajay Maken

The Real Estate (Regulation and Development) Bill, which was cleared by the Cabinet on Tuesday, seeks to protect middle class interests, Minister for Housing & Urban Poverty Alleviation Ajay Maken said on Wednesday.

The Bill, which seeks to protect those buying homes from being conned by real estate developers, will be introduced in the next session of Parliament, Mr Maken added. Parliament is likely to meet for its Monsoon Session in July.

The Real Estate Bill aims to create a real estate regulator to protect home buyers from unscrupulous property developers. It has provisions for tough penalty for putting out misleading/deceptive advertisements about projects. The proposed legislation also makes it necessary for builders to get all important clearances before they sell apartments.  

Mr Maken told NDTV that 22 states, including key states of Gujarat and Madhya Pradesh, governed by the BJP, have supported the Bill. However, some states like Chhattisgarh have opposed the Bill, he added.

Real Estate is a state subject and the cooperation of states is necessary to push the key legislation, Pranay Vakil of Knight Frank told NDTV.
 
Highlighting the significant provisions of the Bill, Mr Maken said property developers need to put project money for a specific project.  (Read: What Real Estate Bill means for you in 10 simple points)

"They can't raise money for project A and then use it to buy land for another project, say B," he said.

This will prevent developers from diverting funds meant for construction and ensure timely completion of projects, analysts said.

Mr Maken said the Bill would make it mandatory for real estate agents to register them with the regulator.