September 2017 \ News \ LEGAL COLUMN ON REAL ESTATE
IMPACT OF RERA ON INDIAN SOCIETY

Advocate Kamal K Anand gives an overview of the Impact of RERA on various sectors

The builder will have to buy land, get all the necessary approvals and then only they can declare the launch of the project. The builders will have to get all the necessary clearances before they can start selling the project. The cost of the project for the developer will increase as now sales will start post-registration, so no pre-launches!

Impact on Brokers

• The broker shall be liable to a penalty of ten thousand rupees (10,000) everyday in case of default. It may cumulatively extend up to five percent (5%) of the cost of plot, apartment, land or buildings, as the case may be, of the real estate project, for which the sale or purchase has been facilitated as determined by the Authority.

• In case of any further indulgence in unfair trade practices, a broker can get an imprisonment of 1 year.

• Up to 5 % of the property cost for non-compliance with the orders of REM.

• Up to 10% of cost, imprisonment of up to 1 year or both for non-compliance with the orders of the Appellate Tribunal.

• It is hoped that the new law RERA will bring trust and transparency in Real Estate Sector in India. It is further hoped that this Act will ensure healthy and ordinarily growth of the Real Estate Sector.

The author is Founding and Managing Partner of Anand Law Practice. He can be reached at KamalKAnand@yahoo.com, kkanand_6@yahoo.co.in —




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