Real Estate bill 2010

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Real estate bill passed, punishment for breaches

Last 22 September the real estate bill 2010 has been enacted. The parliament passed the bill submitted by Abdul Mannan Khan.  The bill is said to be a milestone for the people who seek home, apartment etc. this bill has been enacted protect the people from the grabs of illegal occupiers.

However, this law will not be applicable for the projects or any business venture taken by the government directly in this field. every developing business owners must obtain proper registration from the perspective authority.  After paying full money of the developer by a purchaser, the development must transfer the possession of the property and get the required documentation and registration.

If a developer develops any building without proper authorization they will be subject to the fine of Taka 20 lac. or a jail not exceeding three years or both.  According to the agreement, if a developer fails to deliver properly they have to return the money along with fine within six months in the form of cheque.  If any developer mortgages the perspective property to any bank or financial institution they will not be able to sell it to the customer.  However, with the permission from the respective customer the developer will be able to sell it.  If any developer operates any developing business without proper registration and authorization they have to face the fine of Taka 10 lac. or Jail not exceeding two years . if any developer of however, breaches the conditions underlying in this law and mortgages any property they will be subject to a fine of Taka five lac. or Jail not exceeding one year. According to the agreement if any developer fails to transfer the ownership of the land they will be subject to a fine of Taka 20 lac. Or Jail not exceeding two years.

Source:24H Dhaka news.

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Year old real estate bill passed

The government has finally passed the real estate development and management bill, which was tabled more than a year ago.
The draft law, Real Estate Development and Management Bill-2009, is aimed at bringing the developers and builders under law and save people from the malpractices of the businessmen.

State minister for housing and public works Abdul Manan Khan told parliament that millions of people could be saved from the clutches of real estate businessmen, whom he termed as “assailants and land grabbers”, if the bill was passed.

The lone opposition (independent) Fazlul Azim supported the bill saying, “Millions of people will pray for you for the enactment of the bill.”

The Real Estate Development and Management Bill-2009 sets some regulatory guidelines for running the real estate business and makes provisions for punishment for the breach of the law.

The draft law says the government will set a new office for enforcing the law.

According to the bill, no developer will start work on projects without the approval of the new office. The developers breaching the law will face two years’ imprisonment or a fine of Tk 10 lakh in default.

The bill also stipulates jail term for two years or a fine of Tk 10 lakh for developers if they advertise an unapproved project.

“If any developer, after signing agreement with the customers, does not complete unfinished development work, the government will consider the failure equal to cheating.”

“If breached, owner of the defaulting developer will face two years’ imprisonment or Tk 10 lakh in default,” the draft bill says.

It says the developers must ensure proper ventilation and utility services inside the houses and must carry the expenditure of any repair needed in the first two years of construction.

The bill also says that the companies must hand over the records and necessary documents in three months after the customers make full payment.

“If a developer uses sub-standard construction material or uses less construction material than required, the company owner will face three years’ imprisonment or fines of Tk 20 lakh,” the bill says.

The developer will face similar punishment if it changes the approved designs of any projects.

The bill, tabled on Sept 7 last year, went to the parliamentary standing committee on the housing ministry for further scrutiny.
The parliamentary watchdog was given three weeks to finalise the recommendations.

But the standing committee extended the deadline several times, perceivably faced with the opposition, have been involved in the housing and real estate business.

The committee inserted a section in the bill for protecting the interests of the developers.

It said land owners will be awarded two years’ imprisonment or fined Tk 10 lakh or both if they fail to hand over land to developers within the deadline mentioned in the contract.

Nasrul Hamid Bipu, a top leader of the Real Estate and Housing Association of Bangladesh, was made head of a sub-committee to make recommendations on the bill.

The minister and the committee members at the standing committee meetings were sharply divided over the bill, parliament secretariat sources said.

“Young graduates from BUET and Dhaka University are involved in the case.”

“But one or two companies have been grabbing vast tracts of land of the common people purchasing a small portion in different spots,” said Khan.

“The bill is aimed at bring the assailants and land grabbers under legal network as no one in Bangladesh is above the law.”


Source: BD news 24