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The state of Haryana — Gurgaon in particular, where majority of the fraud cases are related to property — desperately required a law to regulate the activities of its real estate dealers. Experts said the Haryana Regulation of Property Dealers and Consultants Bill, 2008, that was passed by the state assembly on Tuesday, would help in arresting spiraling property prices on account of hoarding and the con and racket that goes on in the name of property transactions.

“About 60 per cent of the fraud cases registered in Gurgaon are related to property,” said DCP (headquarter) Anil Dhawan. And nearly 50 per cent of the 45,000 property dealers operating in Haryana have their offices in Gurgaon.

Gurgaon, with its booming housing sector, has come up as an ideal destination for investment in north India, said Col. Prithvi Nath, the governing council member of National Association of Real Estate Developers and Construction Companies (NAREDCO).

Gurgaon Property

Gurgaon Property

The Haryana Urban Development Authority (HUDA) is developing 58 new sectors on 14,800 hectares. “More than one lakh houses and apartments already exist in the 57 sectors that have come up till now. With the kind of housing available in Gurgaon, there was a strong need for a regulated property market,” said a HUDA official.

Sanjay Dutt, joint managing director of property consultancy firm Cushman and Wakefield, said the Bill would protect the interests of the property buyers and play a deterrent for the opportunistic property agents.

“Now the affected people would have a forum to address their grievances and illegal practices by the erring property dealers would reduce, if not come to an end,” Dutt said.

All property dealers will have to obtain licence from the government. The licence will be renewed every year. Property agents will also stand accountable for every deal they mediate and charge commission for. The government will approve the rate of commission they charge from their clients and all property dealers will have to stand as witness at every stage of property transaction. “The Bill will become an Act after Haryana Governor signs it,” Financial Commissioner (revenue) KS Bhoria said.

Officials also said property dealers would also stand witness on papers for each and every deal they conduct for their clients. This way they would be held accountable for any fraudulent deal, they added.