Other than tightening the grip on builders, the parliamentary select committee is expected to recommend imprisonment as a punitive action against errant developers, realty agents as well as home-buyers who fail to abide by the orders of the appellate tribunals established under the Real Estate (Regulation and Development) Bill, 2013.
The punishment that is likely to be proposed by the panel, in cases where developers contravene the tribunals’ orders, is a jail term of up to three years or a penalty of up to 10 per cent of the project cost, or both. Moreover, the panel is expected to propose that this penal provision be made applicable to even to errant realty agents as well as to home-buyers who fail to comply with the tribunal’s orders. In such cases, the punishment would be a jail term of one year or five per cent of the apartment or plot cost.
The panel was expected to table its report in the Rajya Sabha on Friday. However, it has sought a five-day extension after committee members from Congress and Samajwadi Party asked for more time to study the draft report before they vote in its favour.
The Appellate Tribunal provides for the next level of appeal for builders who are not satisfied with the orders of the regulatory authority and its orders.
Its powers are akin to that of the city civil court and its orders can be challenged only in the high court.
The Indian Express had reported how some members felt the need for stricter punitive measure that allows for prosecution of developers since financial penalties alone would mean that the extra cost is passed on to buyers.