The people of Bengal will witness the dawn of the development, efficiency and professionalism in the state’s real estate sector. The Government of Bengal is planning to notify the West Bengal Housing Industry Regulation Act in upcoming days.
The primary objective of the bill is to regulate the real estate sector of the state and to establish a system to protect consumers’ interest & promote the housing sector of the state. It also aims at eliminating fly-by-night realtors and dishonest developers who are tarnishing the image of the state’s realty market.
The essence of WB Housing Industry Regulation Bill is similar to the Real Estate (Regulation & Development) Act notified by the Central government on May 1st, 2016.
As per the West Bengal Housing Industry Regulation Bill, a project built on an area more than or equal to 500 square meters or have more than 7 apartments or have not got the Completion Certificate from the designated government agency will come under the purview of the RERA and the developer must register such project with the RERA.
The Bill also states that the developer of an ongoing and upcoming project cannot market or sell the units without registering the same with the regulatory authority. The developer can take only 10% amount from the buyer as a booking charge and has to deposit 70% of the funds received from the buyers for the development of the project in an escrow account.
In case the developer or promoter fails to comply with the West Bengal Housing Industry Regulation rules, the authority may penalize the defaulter with fine up to 10% of the project cost or imprisonment up to 3 years or both.
According to a member of a home buyers’ association in Kolkata, if the government will implement the rules strictly, the real estate sector of our state will rise high. We are keeping an eye on the progress of the RERA in other states. Maharashtra, Uttar Pradesh, and Madhya Pradesh are doing way better than expected. We also hope that the WB government will implement the rules soon and will make the real estate sector of the state more reliable.
The Act, along with improving the current scenario of the state’s real estate sector will boost the confidence of the developers & agents and will help them to gain the confidence of buyers.