The Maharashtra Government will set up a regulatory body for the real estate sector with a view to usher in transparency and eliminate malpractices by developers, a senior Government official said.
The pricing mechanism, however, would remain out of the proposed regulator’s ambit, the official said.
“Considering the current scenario, there is a need for setting up a regulator to curb malpractices in the sector,” Maharashtra Principal Seceratry (Housing), Sitaram Kunte, told reporters on the sidelines of an event here on Saturday.
Mr. Kunte, however, did not give any timeline for establishing the regulatory body, saying, “It will be done shortly.”
The regulator would ensure that relevant disclosures about their projects are made by the developers to their customers, he said.
“Real estate projects need to be registered with the regulator. Besides, there should be complete disclosures about the projects for the benefit of the consumers,” he said.
The regulator will ensure that a developer provides complete information about the project such as its completion period and other important details, he said.
“In case, there is any dispute between the two parties, it will be sorted out by the regulator,” Mr. Kunte said.
When asked whether the regulator would also have control over pricing, Mr. Kunte said, “we are not considering it within the ambit of the regulatory body since pricing is market-driven.”
However, the regulator will ensure that discrepancies in prices are done away with.
