Plot sales regulation act ready: draft released
Posted on: 07/Feb/2017 3:09:35 PM
As the regulation Act on plot sales has been prepared and ready, it is expected that this will be enacted as a Law in a short time. The central government enacted the plot sales regulation Act in March last year in order to prevent the illegal activities in the plot sales trade.
Consequently, the central government gave some duration of time for the state governments to implement this Act. The time period given was to implement the Act before October 2016.
Why the delay?
The death of the former Chief Minister Jayalalithaa, the cyclone Varda, and the Jallikattu issue and other reasons led to the delay for the Tamil Nadu state government to implement the Plot Sales regulation Act.
Further, the state government of Tamil Nadu had asked for some clarifications on a few ambiguous and contradictory items on the regulations imposed. This also led to the delay in the implementation.
The close circles in the Housing Development field informed that the Law on the Plot Sales Regulation will be implemented shortly. The state government of Tamil Nadu is ready with the draft. Once this is approved by the state government, it may be released in the Government Gazette. It is expected that this will be put up in the State Legislative Assembly in 1 or 2 months.
The experts in the field of construction observed that the new Law would be attractive to the sellers and also transparent in approach.
However, is it safe for the buyers? For any delay in the construction as per the contract agreement from the sellers, they must pay 12 percent interest as per the delayed period.
Also, the sellers can transact 30 percent of the amount in other forms but the remaining 70 percent record must be maintained in an exclusive bank account.
Thus, the Law includes the prevention of the plot seller to use the money received from the buyer for some other work. Thus, as it is transparent to the buyers, this Law is safe for the plot buyers.If the state government of Tamil Nadu takes up the task of explaining this to the buying public, it would be beneficial to the buyers.
Imprisonment for violation
Various regulations are imposed in the Plot Sales Trade Act. As per this, both the buyer and the seller will have to furnish their Aadhar Card and PAN Card numbers. This will ensure that there is no illegal activity in the registration and the Patta. Further, the sellers who violate this Act are subject to imprisonment for up to 3 years.
All the regulations in the new Act will enable the streamlining of the plot sales trading. The entire construction project/plan will need to be registered. There also other clauses which are beneficial for and in the interest of the buyers.
