Maharashtra is likely to make redevelopers of slums accountable in the state Real Estate Regulation and Development Act (Rera) which is expected to become effective from May 1.
"Many slum developers have made people vacate their homes but have not given them proper houses after many months or years. We were told with the Rera, even slum dwellers can challenge the builders," said a prominent developer in Mumbai who did not want to be quoted.
He said in the central act, the section dealing with slums is not there, as NCR does not have a major issue.
"But in Mumbai, a big part of the city is slums and developers make fortune out of it. They had put pressure on the government not to include them under Rera but the government is likely to add them," said the developer quoted earlier.
Gulam Zia, executive director at Knight Frank, said: "Earlier it was developer focused. Now the act looks like consumer focused."
As per the amendments to the act, builders will not be allowed to collect more than 10 per cent of booking amount from the buyers. Occupational certificate (OC) and completion certificate (CC) have also been made a must for ongoing construction projects, reports said recently.
A builder can charge more than the allowed booking amount only after the builder and the buyer have an agreement on the same, which must be submitted to the Rera authority in the state. Without a registration with Rera, the developer cannot charge more than 10 per cent from the buyers,” the report said, quoting a government official.
The state government came out with draft rules in December last year and invited suggestions.
Many forums and associations dubbed it pro builders as it allowed them to charge undue penalties for delay in payments.