Centre unveils real estate draft rules for Union Territories

The Centre unveiled draft rules for five Union Territories under the Real Estate Act which seeks to regulate the real estate sector, bring in transparency and help protect consumer interests.

The Housing and Urban Poverty Alleviation Ministry has posted the draft rules on its website for UTs without legislature--Andaman and Nicobar Islands, Chandigarh, Dadra and Nagar Haveli, Daman and Diu, Lakshadweep -- and sought objections and suggestions from public in two weeks, an official release said.

The Real Estate (Regulation and Development) Bill, 2016 was passed by the Parliament in March.

Non-discrimination against anyone in allotment of apartment and deposit of 70 per cent money realised by promoter in a separate account for meeting construction and land cost are some of the key highlights of the draft rules.

As per the draft, interest to be paid by promoters and allottees for delays would be SBI Prime Lending Rate plus 2 percent, the release said.

"Fee proposed for registration of projects with the Regulatory Authority is Rs 10 per sq mt if the plot area is below 1,000 sq mt and Rs 20 if the area for development is more than that for residential projects," it said.

For commercial projects, however, the registration fee will be Rs 50 per sq mt for up to 1,000 sq mt and Rs 100 per sq mt beyond that.

The promoters are also required to submit information on 60 aspects about themselves and their projects, according to the draft rules.