India has passed a new bill to regulate its housing market, five years after the idea was originally proposed.
The Regulation and Development Bill means that there will now be a regulatory authority present in every state within the country for the purpose of protecting consumers from unscrupulous developers.
Developers of projects spanning over 1,000 square metres will have to register with their relevant authority, detailing land titles and other information. Only once these had been approved would the developer be able to advertise their project for sale, with those who refuse being forced to pay a fine of 10% of the development costs and potentially facing up to three years in prison.
The bill will also continue to protect the consumer throughout the building process, forbidding the developer from drastically altering the layout of the building without consulting buyers, and forcing developers to account for the materials they use and to provide details of the floor plan of the property.
Vikas Oberoi, Managing Director of Indian real estate developers Oberoi Realty, said, "We have always been pro-regulator as it will make customers confident. It will make sure that developers walk the talk but at the same time, it is good for the industry as it will result in more sales."
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