Three month deadline set for states to set real estate regulator
The Ministry of Housing and Urban Poverty Alleviation has notified the Real Estate (Regulation and Development) Act, 2016, in its entirety setting a three-month deadline starting May 1 for all state governments to appoint a Real Estate Regulatory Authority, issue the regulations and enforce the legislation.
Builders, of both new as well as ongoing projects (the ones that have not received completion certificate), will have to mandatorily register their project with the Authority within this period. The three-month deadline is also applicable to real estate agents who also have to register themselves with the Authority.
Terming the Act as the “most far reaching pro-consumer and pro-industry initiative,” Union urban development minister M Venkaiah Naidu said on Thursday that it is the responsibility of Chief Ministers of all states to ensure that the Act and other institutional infrastructure is in place by then or risk facing a backlash from the people referring to potential PILs in court against non-implementation.
Stating that 60 Sections of RERA were brought into force a year ago, Naidu added, “ The remaining 32 Sections of the Act have been notified last night. These include sections relating to registration of ongoing projects that have not received completion certificate and penalties for non-compliance which would be effective from first of next month.”
So far, only 13 states and union territories have notified rules under RERA while another 15 have prepared draft rules. There is no information about any progress from the three states of Goa, Manipur and West Bengal while the north eastern states of Sikkim, Arunachal Pradesh, Meghalaya and Nagaland have sought
legal opinion due to issues in the land-holding pattern. Similarly, only Madhya Pradesh has appointed a state-level Regulatory Authority so far. Twenty one states have either appointed an interim Regulatory Authority or are in advanced state of appointing an Authority while the rest have made no progress on this front.
Naidu had earlier in a meeting of housing secretaries and chief secretaries of all states warned the states against diluting their RERA rules to facilitate builders to the detriment of home-buyers. He had said that “any compromise with the Act will have serious implications.”