New Delhi, Oct 3: The Centre has finalised rules for the Real Estate (Regulation and Development) Act, which will be communicated to the states soon, allowing them to set up regulators for the sector, Union Urban Development Minister M Venkaiah Naidu said today.
Parliament had passed the bill in March, to regulate the real estate sector, bring transparency and help protect consumer interests.
"The Real Estate bill has already been approved and we have finalised the rules too. Now, we will communicate to the states shortly and the states have to appoint regulators within a period of six months... it will be a reality now," Naidu said on the sidelines of 'India Habitat III-National Report' release event.
Emphasising that the Act brings in transparency and accountability in the real estate sector, he urged the private sector to join hands with the Centre to meet the shortage of houses in the country.
"This is a regulation and not a strangulation. We want the private sector to join in a big way to take on the challenge of housing shortage in the country," he said.
The Real Estate Act is touted as a major reform measure to regulate the vast real estate sector and bring order in it.
It will help establish state-level Real Estate Regulatory Authorities to regulate transactions in both residential and commercial projects and ensure timely completion and handover of those. It will also be required to dispose of complaints within 60 days.
Among other provisions, the Act prohibits unaccounted money from being pumped into the sector and from now, 70 per cent of the money has to be deposited in bank accounts through cheques.