Bihar chief minister Nitish Kumar finally has given a green light to the draft Bihar Real Estate rules (Regulation and Development) 2017 and rendered the urban development and housing department to present it before the state cabinet for approval so that it can be notified before April 30.Every under construction project that haven’t been issued/received any completion certificate will fall under this notified RERA rules. Realty projects which consist of more than 8 flats will also enlisted under these new regulations.
The rules specify that the prices of the apartments will not be decided upon the super build-up area, rather will be based on the carpet area of the property. Balcony, internal walls, kitchen and toilets all these usable spaces are considered as the carpet area. The chief minister gave affirmation to the draft at a review meeting of the urban development and housing department at the CM secretariat on this Wednesday April 5, 2017. Nitish also asked the housing department to form an urban engineering organization, on the lines of further public works organizations.
According to the urban development and housing minister Maheshwar Hazari this new cell would have 577 engineers. “The cell will add to the efficiency of urban local bodies to execute civic works. The engineers will be recruited at the headquarters level and work for the urban local bodies across the state,” Hazari said.
The chief minister furthermore asked the Patna municipal commissioner to produce property tax assessment property tax assessment on the basis of consumption of the properties. The Centre-notified Real Estate Regulation Act (RERA) of March 2016 will be followed by the state real estate rules. All states were supposed to frame rules for execution of the RERA within 6 months. Afterwards, all states were directed to firm up the rules by April 30.
RERA determines mandatory registration of every under construction and imminent real estate project, penalty to builders against holdup and vindictive extents, including jail terms for crooked builders. The developers are also advised to come up with their project details on the website of the authority along with quarterly updates of the projects. In case there is any postponement from the builder’s site, then builder will have to pay the monthly interest of home loan of the flats buyer. The builders are asked to open a separate account ‘escrow account’ to deposit 70% of the money pulled together for the project. For construction purpose they are permitted for any withdrawal. There will be an appellate tribunal to hear the real estate complaints.
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