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In a recent development, any new construction project consisting of six flats or more on a 3-cottah plot will now fall under the jurisdiction of the Real Estate (Regulation and Development) Act, 2016. This decision has been made to ensure that approximately 90% of small-scale developments, where customers previously had limited options to address grievances except approaching the court, comply with the regulations.
Previously, only projects built on plots measuring 7.5 cottah or more and featuring a minimum of eight flats were subject to regulation by the real estate regulator. However, a new notification issued last week has revised the threshold for project inclusion under the purview of the regulator.
Sushil Mohta, the President of the Confederation of Real Estate Developers Association of India-West Bengal, welcomed this notification and emphasized the positive impact it will have on small home buyers. He highlighted the prevalence of fraudulent practices by inexperienced developers who engage in projects solely to make quick, unethical profits.
The move to expand the reach of the real estate regulator aims to address the concerns and protect the interests of customers who invest in smaller housing developments. By subjecting these projects to the regulations outlined in the Real Estate (Regulation and Development) Act, the authorities aim to bring transparency, accountability, and a higher level of consumer protection to this segment of the real estate market.
Under the Real Estate (Regulation and Development) Act, developers are required to register their projects with the regulatory authority, disclose all relevant information, adhere to timelines for completion, and maintain the quality of construction. This ensures that homebuyers are informed about the project details, payment schedules, and delivery timelines, enabling them to make informed decisions.
With the inclusion of projects on 3-cottah plots with six flats or more under the purview of the real estate regulator, customers who invest in these developments can now seek redressal within the regulatory framework if any issues arise. This move is expected to instill confidence among small home buyers, ensuring that their investments are protected and that they have a reliable channel for resolution in case of any discrepancies or non-compliance by developers.
Overall, the decision to extend the scope of the Real Estate (Regulation and Development) Act is seen as a positive step towards safeguarding the interests of homebuyers, promoting transparency, and fostering a more regulated and accountable real estate sector.
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