Stringent measures proposed to deal with errant builders

PANJIM, MARCH 7
The State Law Commission on Monday recommended a stringent law to deal with real estate developers and builders who dupe consumers.
State Law Commission Chairman Ramakant Khalap told reporters that the Commission has recommended enactment of ‘The Goa Real Estate (Promotion, Control and Development) Act, 2011’ proposing imprisonment of upto 2 years to erring builders.
Stating that experiences of consumers wanting to buy flats were ‘harrowing’, Khalap said several issues crop up after the flat or apartment is booked by the consumer including the fact that the promoter or builder has no proper marketable title to the property.
There are times when parking areas, open spaces and terraces are sold even to non-flat owners. In many cases, cooperative societies are not formed and flats are sold only on the basis of agreement of sale, he said.
Claiming that builders flout every rule in the book while constructing and allotting flats, Khalap said “in many cases there is not even a proper document of handing over or document of completion and occupation of the building”.
The Law Commission also encountered complaints like ‘sub-standard constructions’. The recommendations placed before the State Government ought to be administered as a deterrent, he said.
Khalap-led committee has proposed punishment which may go upto 2 years imprisonment and fine of upto Rs 10 lakh.
The Law panel has also sought compulsory execution of agreement containing details of carpet area, construction and providing all documents establishing title; compulsory transfer of apartment along with land and building to cooperative society or association and only in case where such organisation cannot be formed, individual Sale Deeds can be executed with proportionate rights in the land.
Prohibition on mortgage of land/apartment without consent of the purchaser; no receipt of money without letter of allotment or without entering into agreements; prohibition to collect the entire amount of consideration before possession and penalty in case of non-compliance of the provisions of the Act, are some of the other measures that are proposed in the legislation.
Two other recommendations that also feature are a) stamp duty for conveyance in favor of co-operative housing be reduced to 1 per cent irrespective of quantum of consideration, and b) registration fee for co-operative housing societies be reduced to 1 per cent irrespective of quantum of consideration.