The Bihar cabinet today approved "Bihar Real Estate (Regulation and Development) Rules, 2017" to bring transparency in real estate sector and to protect the interest of consumers.
"With the implementation of the rules, it would not only bring transparency in the real estate sector in the state but also protect the interest of consumers," Urban development and housing department Principal Secretary Chaitanya Prasad said.
Besides, the rules would ensure timely completion of projects, Prasad told reporters after the cabinet meeting.
The cabinet gave its nod to the rules in view of the Real Estate (Regulation and Development) Act, 2016 notified by the Central government in March last year.
Prasad said that the Act envisaged the provision of a "Real Estate Regulatory Authority" in every state where an aggrieved consumer could file a petition.
According to the rules, a developer can sell a flat on the basis of "carpet area" only, cannot take more than 10 per cent of the cost of a flat as "advance or booking amount, and will also have to furnish project details on the Authority's website.
Prasad said that the Act also has the provision of setting up of "Real Estate Appellate Tribunal" but till the Tribunal was formed, "Land Tribunal" would work as Real Estate Tribunal.
Urban development and housing department principal secretary was designated as Regulatory Authority till a permanent regulatory authority was set up in the state, he said.
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