Defaulting builders will no longer be able to fool buyers by just changing the name of their firm. According to the Maharashtra Housing Regulatory Authority bill, builders will now have to reveal not only the name of the firm, but also the name of the promoters. So if one of them cheats and gets blacklisted, then the name of the firm along with the promoters will be displayed online.
The bill, which is expected to be tabled in the house on Monday or Tuesday, has an additional clause that not only requires the name of the developer, but also the promoters of the project, to be made public. Said state housing minister, Sachin Ahir, “The bill aims to bring more transparency.
Only after the developer provides the names of the promoters and all the details of the project, will the registration number be given to him.” The names will be displayed online. According to the minister, this will help the home buyer know whether any blacklisted firm, promoter or developer is trying to deal with them or not.
A senior housing officer said, “Often, when the developer is caught doing something wrong, he conveniently changes the name of the firm or puts someone else as the face, and remains as a promoter or a small investor in the firm. If people know the name of every builder, developer, promoter who has been blacklisted it will help them weigh their options before buying a flat.”
According to a real estate agent, several builders have changed their names in the past as soon as they were embroiled in a controversy. This move will affect them very badly. “The first move a builder who was embroiled in a controversy would make was to change the name of the firm. Now that all names will be displayed this will be a bit difficult. But builders will definitely find a new way out,” said the agent who didn’t wish to be named.