REHAB opposes most provisions of draft law
Realtors have opposed the draft of the Real Estate Management Ordinance-2008 saying that the penal provisions incorporated in the draft will hurt the growth of the sector.
The Real Estate and Housing Association of Banfgladesh (REHAB) Thursday placed recommendations on the proposed act, urging the government to review it for the greater interest of the sector.
"We have submitted our recommendations Thursday on the draft act as the contents are contrary to the growth of the sector," said Tanveerul Haue Probal, president of REHAB.
The government took a move for encting a law for stremlining the real estate and housing sector amid widespread allegations of encroadchment of private and public lands, breaching of contracts with buyers and deception by a section of homebuilders.
As per the draft law, unregistered developers will be fined Tk.500,000 and repeated violation will carry a five year jail term along with a fine of Tk.200,000.
The proposed law said the real estate companies have to be registered with the National Housing Authority and other eity based government owned development authorities.
But REHAB said the developers should not be required to register with any government entity if they become members of the REHAB.
If developers stop construction works of flats for a period of three months or more, they will be liable to suffer a prison sentence of two or a fine of Tk. 500,000 or both, according to the proposed law.
REHAB in its proposals said, therer should not be jail provision of the developers.
It suggested inclusion of fines and cancellation of registration in the draft act instead of jail provision.
(The Financial Express/28.07.08)
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