Cabinet meet today, focus on real estate

CHANDIGARH:The Punjab Council of Ministers, expected to meet on Saturday evening, could give its nod for the state’s own rules to enforce the Real Estate (Regulation and Development) Act, 2016 (RERA), paving the way for setting up a regulatory authority in the real estate sector.

Ruchika M Khanna

Tribune News Service

Chandigarh, December 9

The Punjab Council of Ministers, expected to meet on Saturday evening, could give its nod for the state’s own rules to enforce the Real Estate (Regulation and Development) Act, 2016 (RERA), paving the way for setting up a regulatory authority in the real estate sector.

All ongoing real estate projects, wherein construction is on and the constructed units’ possession has not been given to investors, will be brought under the new rules of RERA that have been framed by the state government. Under this, mandatory registration of all ongoing and new real estate projects will be required to provide safeguards against delays and fraudulent practices by realtors. The rules will also allow the imposition of punitive measures as well as jail term on unscrupulous builders. It also requires builders to disclose project details on the website of the regulator along with quarterly update on its progress on site.

All realtors will have to put 70 per cent of the amounts realised by the builder for the real estate project from the homebuyers in a separate ESCROW account, to be maintained in a scheduled bank, and is to be utilised to cover the cost of construction and the land cost only for that purpose.

Besides, the Punjab cabinet will also discuss and give a go ahead for the setting up of a regulatory authority for the fees charged by private schools.

Other things to be discussed are amendment to the Punjab Medical Registration Rules, 1971, and ex facto approval for the extension in services of two members of the Punjab Subordinate Services Selection Board.