Weather | Dhaka The government yesterday placed a bill in parliament for enacting a law with provisions for punishing real estate developers for wrongdoings and protecting the interests of buyers and landowners.
The Real Estate Development and Management Bill 2009 is based on an ordinance, promulgated by the last caretaker government, which ceased to have effect on February 25 this year for not being ratified in parliament within the stipulated time.
Prime Minister Sheikh Hasina however announced in parliament that the ordinances, which ceased to have effect, would be placed in the House as bills for turning them into laws.
State Minister for Housing and Public Works Abdul Mannan Khan introduced the bill in the House with a provision for stern legal actions for violating the law.
The bill was sent to the parliamentary standing committee on housing and public works ministry for scrutiny. The committee has been asked to submit a report to the House within three weeks.
The state minister said the proposed law will establish trust among buyers, sellers, developers and landowners and also ensure safe investment.
“Any violation of conditions enshrined in the agreement by any party will be deemed as punishable offence,” the bill says.
According to a provision of the bill, an unregistered developer will be imprisoned for two years or fined Tk 10 lakh for advertising any property development project in the media.
The proposed law says all real estate developers have to be registered with the authorities concerned.
A developer will be awarded two years' imprisonment or fined Tk 10 lakh for launching development works without permission of appropriate authorities.
If a developer fails to keep the promise of providing utility facilities to the developed plots in line with its prospectus, he or she will be fined Tk 5 lakh, or awarded one year's imprisonment for failing to pay the fine.
Another provision of the bill says a developer will be imprisoned for three years or fined Tk 20 lakh or awarded both for constructing buildings in violation of the approved design.
If a developer doesn't comply with the agreement with landowners or buyers or keeps the construction work unfinished and does not give compensation for this, it will be considered as cheating, says the law. The developer might be imprisoned for maximum two years or fined Tk 20 lakh or awarded both for cheating.
The state minister believes once the bill is turned into a law, it will contribute to the country's development and ensure a congenial atmosphere in the real estate sector.
Meantime, State Minister for Power, Energy and Mineral Resources Mohammad Enamul Haque placed a bill for amending Bangladesh Energy Regulatory Commission Act to re-set the qualifications of candidates for chairmanship and membership of the commission.
In defence of amending the law, the state minister said there are some anomalies in the existing qualification criteria.
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Tuesday, September 8, 2009 11:55 AM GMT+06:00 (11 weeks ago)
These are excellent steps. However, the monetary value of the punishment should be raised further, taking into account the current value of apartments and the level of profit that developers make.
Tuesday, September 8, 2009 01:39 PM GMT+06:00 (11 weeks ago)
Though belated, the present government has taken a very pragmatic decision to enact law, protecting the interest of flats and plots purchasers from the unscrupulous Developers.
Previously there were no such rules and procedures to protect them though the immediate past Caretaker government had passed an ordinance which was not ratified by the present Government and hence many of the purchasers have been depriving of to take legal protection. As a result many buyers have been bitterly experienced and suffered after paying substantial amount of very hard earned money or savings.
Besides some developers hardly respect the commitments and deed agreement and eventually ignores the deed clauses. Even in some cases buyers are not always properly guided and seemingly less attention is paid to their legitimate demands and claims if they are not socially, economically, politically authoritative and powerful. It may or may not be applicable to all developers equally but in some cases both buyers and sellers are also responsible for the deadlock though in principle basic responsibilities are vested upon the developers.
I therefore hope, the government would pass this law, to uphold and save the innocent buyers from such ordeal, particularly to mitigate the sufferings of manifolds after paying money for a flat or a land allured from the very lucrative advertisements. The law should protect and safeguard the agreement signed between the two parties and under no way to be misguided and misinterpreted by the developers in favor of their interest keeping in mind; a single buyer is a weak opponent to some extent. The law must ensure the accountability and fairness of developers to the sellers.
On the other hand, the Government would facilitate the respective developers by extending all possible supports and cooperation enabling the developers to complete the project in time instead of procrastinating the bureaucratic process and procedures. This sector is playing very pivotal roles in the infrastructural development, enhancing employments and economic growth of the country which can not be ignored.