Builders in AP are at their wits end on hearing that the central government has gone about passing a regulation which if not adhered to might leave them exposed to a legal possibility of a 3-year jail term. Called the Real Estate Bill, it encompasses just about every facet of the law that the builders earlier violated with impunity. Under the new rule builders will have to register with a regulator and provide details of number and size of plots, layout plan and other facilities before commencing a project. The rule expressly forbids them from taking any advance payment from buyer without a written sale agreement that clearly mentions project timelines, payment and possession date. The law also forbids that the promoter is not at any liberty to cancel the sale deed unilaterally. Any violations in the said norms will make the builder liable to face a 3-yr prison term. Builders in Hyderabad, Nellore and Vijayawada are now in a dilemma as this will cause tremendous strain on their existing projects and they are also sure that they will not have free access to transfer of suspense amounts.
14 years ago
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