Centre asks states to set up regulatory bodies

Centre asks states to set up regulatory bodies
25/07/2017 , by , in News/Views

The Centre has asked the states and union territories to “immediately” set up regulatory authorities under real estate rules as just over a week is left for mandatory registration of all projects, according to an official communication.

Under the Real Estate (Regulation and Development) Act (RERDA), every state and UTs must have its own regulator and developers will not be able to market their projects, both ongoing or new, till they register with either the permanent or interim regulators.

For ongoing projects, where completion or occupancy certificate has not been given, the deadline for registration is July 31.

Till now, 21 states and union territories have notified the rules but only 19 have set up either interim or permanent regulatory authorities.

“Though a large number of states have notified the rules, very few have set up permanent regulatory authorities and appellate tribunals.

“The situation has become quite grave, because in the absence of rules and regulatory authorities/appellate tribunals, the transactions in primary real estate will get adversely affected after 31st July, 2017,” Housing and Urban Affairs Secretary Durga Shanker Mishra said in a letter, dated July 21, to all states and UTs.

He said it was “therefore necessary that the subordinate rules and regulatory authority need to be in place forthwith”.

In absence of an appellate tribunal, Mishra said adjudication of disputes in the sector will also get delayed.

He also clarified that registration of projects and real estate agents can also be done offline in case the web portal is not ready.

“I would like to point out the even though it is desirable to register the projects and agents through the web portal… it is not mandatory as per section 4(3) of the Act, for a period of one year from the date of its commencement.

“Thus until a web portal has been operationalised, registration of projects and agents can be done offline,” Mishra said.

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