Mr.M Venkaiah Naidu, the urban development minister, has warned the real estate developers of penal action for not keeping up to their promises. And it’s not just the builders that are not under the disciplinary measures of Real Estate Regulatory Act (RERA). The Regulatory Authority which is established to bring transparency in the real estate sector will also bring the plot promoters in the ambit of RERA.
According to the act, a promoter is “a person who develops land into a project, whether or not the person also constructs structures on any of the plots, for the purpose of selling to other persons all or some of the plots in a project, whether with or without structures thereon.” The real estate agents who assist the process of purchase and sale of plots, whose marketing is done by some promoters, will also come under the ambit of RERA. Therefore, plot promoters will also have to get their layouts registered with the Authority, just like builders, before their project gets launched in the market.
The real estate developers have said that the action of including plot promoters in the ambit of RERA will make sure that they are not distracted from guaranteed amenities.
Out of the total land which is proposed for the layout, around 45% should be reserved for amenities such as Open Space Reservation (OSR) and roads to be approved by the planning authorities and the remaining can be treated to be developed as plots.
The Act has made pretty clear that the promoters who are at default will be liable to get punished with imprisonment for a period of three years or a penalty which may reach up to 10% of the amount of estimated cost or maybe both.
RERA will also give the provision to get all the details about the projects in real estate. All the projects that are registered with RERA will have their information and details on an exclusive web portal designed by the authority.