Bihar approves setting up of real estate regulator

State seeks to infuse transparency into the sector and protect consumer interests, as per RERA norms

In a relief to home-buyers in Bihar, the state government ordered the setting-up of a regulator to bring transparency to real estate sector. The state cabinet has approved "Bihar Real Estate (Regulation and Development) Rules, 2017" to protect the interest of consumers.

The cabinet on Thursday gave its nod to the rules in view of the Real Estate (Regulation and Development) Act, 2016 notified by the Central government in March last year. Under the provisions of the act, every states need to set up a Real Estate Regulatory Authority (RERA), whom an aggrieved consumer can approach for redress.

The authority is all set to come into force on May 1. "The implementation of the rules would not only bring transparency in the real estate sector in the state but would also protect the interest of consumers," Urban development and housing department Principal Secretary Chaitanya Prasad said. He also stressed that the rules would ensure timely completion of projects.

According to the rules, a developer can sell a flat on the basis of "carpet area" only, he cannot take more than 10 per cent of the cost of a flat as advance or booking amount, and will also have to furnish project details on the Authority's website.

"Developers need to publish all the details regarding the project on their websites. Developers need to put at least 70 per cent of total proceeds into a special account meant only for construction of property. Builders can withdraw the money only after proper certification from engineers, architects and charted accountants'" Prasad said.

Prasad said that the Act also has the provision of setting up of "Real Estate Appellate Tribunal" but till the Tribunal was formed, "Land Tribunal" would work as Real Estate Tribunal. Urban development and housing department principal secretary was designated as Regulatory Authority till a permanent regulatory authority was set up in the state, he said.