The Centre on Monday notified rules for the Real Restate (Regulation and Development) Act, through which it aims to monitor the sector and make it more transparent, as well as to ensure that projects are completed quickly. The new norms will apply to the Union Territories of the Lakshadweep and Andaman and Nicobar islands, Dadra and Nagar Haveli, Chandigarh and Daman and Diu, according to a statement from the government.

While the Housing Ministry notified these rules, the Urban Development Ministry will frame regulations for the Delhi-National Capital Region. Other states and Union Territories will come out with their own sets of norms.

Buyers can now get 10.9% interest every year if they want a refund because possession was delayed. Developers must make this payment within 45 days. Moreover, all projects will have to be registered with state-level Real Estate Regulatory Authorities to ensure that the interests of both buyers and builders are safeguarded. The registration fees for both builders, as well as for commercial and residential projects, have been slashed by half.

Also, to make sure that projects are completed on time and unused funds for one undertaking are not used for another, developers will have to deposit 70% of the funds collected for a project into a separate bank account within three months of applying for registration.

In March, the Rajya Sabha had passed the Real Estate (Regulation and Development) Act, 2016, which gives powers to regulatory bodies to oversee all transactions between buyers and sellers and to take steps against those caught violating the guidelines. According to the new rules, anyone found flouting the norms faces a jail term of up to three years and/or a fine.