Bhubaneswar: The State Cabinet has approved the Real Estate (Regulation and Development) Act, 2016, of the Central Government, informed Housing and Urban development minister Pushpendra Singh Deo in a Press Meet here today.
Deo said that the Act will bring transparency in the sale and purchase of properties. He informed about formation of a Real Estate Appellate Tribunal as per the act that will be headed by a retired Chief Justice, who will be assisted by two experts to adjudicate the disputes.
The minister further informed about formation of Real Estate Regulatory Authority that will be headed by a senior administrative officer of the rank of Additional Secretary in Central Government. The chief of the regulatory authority will be selected by a three member committee constituting of Chief Secretary, Urban Development and Law Department secretary.
Steps have been taken to protect customers from being victim of any real estate fraud, said Deo. He added that registration for sale and purchase of properties has been made mandatory. Sale and purchase without registration will attract jail term and fine. The accused will have to pay fine amounting to 10 percent of the total purchase price of the property and undergo three years jail term. Similarly five percent fine will also be taken from the mediator of the property deal along with a jail term, he added.
Deo further informed that as per the new rule a real estate developer cannot charge more than 10 percent of the project cost from the customer before providing the sale agreement.