Real estate bill has leaved builders on the edge over project delays and financial stress

Q: The real estate bill 2016 has caused a bother among builders who are concerned over tow key provision that could cause project delays and financial stress.

Vasanth,

6th April 2016

Real estate News in Mumbai

real estate bill

real estate developers

real estate regulation and development bill

registration of under construction project

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Replies (3)

i am not post my add in this site plz help me

pijush paul, Noida

Official account of - Great Magadh Infratech Pvt Ltd

7th April 2016

Comment

What are trying to say
http://www.pranavconstructions.com

Shakeel , Mumbai

9th April 2016

Good evening everyone!!!!
Deposit of 70% of the money paid by buyers in a separate account towards the cost of construction, including that of land means that after depositing the funds, the amount spent on buying land can be withdrawn by the builder proportionately and the remainder has to be used for construction. The money that has not gone into the separate account remains with the builder.

Vasanth,

6th April 2016

Comment

This will push builders to pay by cheque when buying land, reducing the flow of black money in the realty sector. The other concern that builders have raised is registering projects under construction with the new authority. This doesn't mean that the builders will have to stop work. They will only have to submit details of the under-construction projects, as in the case of new projects, to the authority and upload them on their websites.

Bulbul Verma,

6th April 2016

Hi Vasanth,
But i don't think that it is a reason of worry for the builders. According to developers registration of under-construction projects could lead to delays. They are also concerned that keeping aside 70% of the funds collected from customers will burden their already stretched liquidity position.

Dwarkesh,

6th April 2016

Comment

Hi Dwarkesh,
I am not agree with the developers view. May be language of the law is not backdated but prospective and the attempt is to only bring transparency and order into this unorganized sector. The main intention of the government is to give freedom according to their business plan and security to buyers. it demands to combine the interest of both sides.

Bulbul Verma,

6th April 2016