CHENNAI: Union urban development minister M Venkaiah Naidu warned last week of penal action against realtors dishonouring their promises. But it’s not just builders who face punitive measures under the new Real Estate (Regulation and Development) Act.
The ambitious legislation, which came into effect on May 1 across the country, also deals with plot promoters. The act is yet to be enacted in Tamil Nadu as the state government has not ratified the draft rules.
The act clearly states that defaulting promoters shall be punishable with imprisonment for a term which may extend up to three years or with fine which may extend up to a further 10% of the estimated cost of the project or with both.
RERA will also open a window to access complete details about real estate projects. Leading developer Chitty Babu said that details on all projects registered with RERA will be available in an exclusive portal to be created by the authority. “It (web portal) “It will be a great tool for understating a project ahead of buying a property,” he said.
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