Big real estate companies in Lucknow say that the Real Estate Regulation and Development Bill will possibly weed out non-serious developers who simply wants to make easy money. More than 70 per cent projects in the city, big as well as small, have some lacuna or the other in terms of obtaining necessary approvals, claim industry experts.    

This implies that once the bill gets enacted, a majority of projects would come under the scanner and could possibly be stalled, thereby affecting thousands of people. The bill ensures developers register all projects with the State regulatory authority and adhere to deadline and specifications promised to the buyer.    

It could also make provisions for penalising realtors who dupe people through misleading advertisements. Besides, an important feature is that the developer needs to seek all necessary clearances before selling his property. He cannot collect money from buyers before obtaining important permits from various agencies. This comes as a great relief for end users who are not given clear picture about the land acquisition status by many developers.    

The move has been welcomed by established players who said setting up an apex regulatory body was the need of the hour to bring the much needed control in the industry. Experts claimed around 30 per cent projects are being developed in the outskirts by small and fly-by-night operators who have not taken approval from either of the authorities-Lucknow Development Authority or UP Housing and Development Board.    

Since the land (mostly agricultural) on which the projects are coming up are on the periphery, developers have got maps conveniently approved by local zila panchayat bodies for lesser rates. These are small projects on about 20-25-30 acres of land. One can see such projects mushrooming near Barabanki and on Deva Road, Gosainganj on Sitapur Road, Mohanlalganj on Rae Bareli road and the stretch between Amausi airport and Unnao on Kanpur Road. Before obtaining necessary approvals, developers market their projects at attractive rates to lure public.