On 16th August, West Bengal government placed a bill called the West Bengal Housing Industry Regulation Bill in the assembly. This bill will protect the prospective homebuyers of West Bengal who wants to buy property from prominent real estate developer in Kolkata.
The meaning of “car parking area” is clearly mentioned in this new bill. According to the new bill, there is a notice called “Commencement Notice“ which when passed by the corresponding authority will permit the builder or promoter to begin construction works in a particular property. In last year 2016, the Centre has introduced Real Estate (Regulation and Development) Act in the Parliament. According to this Act, a place within a project will be called as a garage if it has 3 walls on three sides & one roof. This bill has not mentioned anything about open space parking areas as garage.
Mr. Samir Chakraborty, MLA from Taldangra said that there is no particular definition of garages according to the West Bengal government, which means all types of covered or uncovered parking space can be sanctioned as a garage by the competent authority. Mr. Samir also chairs the West Bengal Housing Board.
Generally, the housing industry deals with the construction, sale & development of land plots. The bill placed by the State is applicable for all over Bengal.
According to the new bill, if a builder, promoter or any real estate agent fails to pay any penalty or compensation forced on them by the competent authority, then that compensation can be recovered from them in the form of obstacles of land revenue.
As the bill has positive impacts, it has negative impacts also. Due to this bill, the property price may increase. According to the West Bengal Housing Industry Regulation Bill, Carpet Area must be declared & if any apartment has to be sold then it must be done on the basis of carpet area. But according to the West Bengal Building Act of 1993, only the total covered floor area had to be declared. In this bill by the Bengal government, it is mentioned that the owners have to pay only the cost of super built area to the builders.
From now on, out of the total amounts collected from the allottees for any real estate project, 70% has to be deposited in a scheduled bank. But the rest 30% remaining can be utilized by the promoter for other projects.
It is now compulsory for all real estate agents to register themselves. Defects liability period which was only two years in the past, is now five years. Before any advertisement is launched, the real estate project has to be registered prior. From now on, the promoters or the builders will be imposed penalty of 10% of the cost of the project or imprisonment of 3 years if they fail to pay the penalty.
To construct buildings in a plot in a very transparent & efficient manner this bill is introduced. Now because of this bill, any type of disputes between buyer & promoter can be solved fast. Now, appellate tribunals will be installed to hear any appeal. Those real estate projects which have land area of 500 sq meters & which have more than 8 apartments, it is now essential to register them.
Housing Minister Mr. Sovon Chatterjee told that within 60 days, the appellate authority will be made.
Finally, it can be concluded that the bill placed by Bengal government is a boon for the property buyers of Kolkata.