Bhubaneswar: Odisha Housing and Urban Development (H&UD) Minister Puspendra Singh Deo on Thursday has said that that the State Cabinet has given its seal approval of the Real Estate (Regulation and Development) Act, 2016, of the Central Government.
The minister said that the act will bring transparency in the sale and purchase of properties.
Informing about formation of a Real Estate Appellate Tribunal as per the Act, he informed that it will be headed by a retired Justice or sitting Judge of High Court assisted by two experts to adjudicate the disputes.
About formation of Real Estate Regulatory Authority, the Minister further informed that it 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 panel comprising of Chief Secretary, Urban Development and Law Department Secretaries.
He also further added that steps have been taken to protect customers from being victim of any real estate fraud. As per the act, the registration for sale and purchase of properties is mandatory and violation 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 broker of the property deal along with a jail term.
The new rule also states that a real estate developer cannot charge more than 10 percent of the project cost from the customer before providing the sale agreement.
A separate bank account for the project will be opened in which 70 percent of the total project cost will be deposited in it that could only be utilized for project cost.
Singh Deo also said that each company has to submit their five-year performance report religiously to the regulatory authority.