What is RERA and how will it affect the real estate industry and home buyers?by Nityanand Tripathi Senior Digital Marketing Executive
Realty Act is being implemented from May 1, but so far many states are not ready to adhere to its rules. This state wants some changes in its structure. According to the Times of India news, only 12 of the 32 states and Union Territories of the country are willing to accept the rules of the Realty Act. In this, the officials of the three Union Territories Delhi, Andaman and Nicobar Islands and Chandigarh have also accepted the rules of the Realty Act.
What is RERA
Real Estate (Regulation and Development) Act, 2016 is an act of the Indian Parliament that promotes capital investment in real estate as well as protecting domestic buyers. This act was passed in the Rajya Sabha on March 10, 2016 and in the Lok Sabha on March 15, 2016. By implementing 69 streams out of its 92, this Act was implemented from 01 May 2016
Detail about RERA
In addition, three Union Territories RERA Delhi, Andaman and Nicobar Islands and Chandigarh have appointed Interim Officers.
However, other states including Haryana, Rajasthan, Gujarat and Andhra Pradesh they have not done so. Hence no new project can be started in these states. However, this will damage the real estate sector as it is already struggling with recession.
The Real Estate Regulation and Development Act (RERA), 2016, was brought into effect from 1 May this year. It has been almost four months since the implementation of this law in the real estate sector, but so far the regulatory structures associated with it have not been duly constituted.
So far, 23 states and Union Territories have issued notification for implementation of the Rera Law and Property Legal Solution. Of these, interim regulators have been informed in 13 states and six union territories whereas standing states have been made in four states-Punjab, Maharashtra, Gujarat and Madhya Pradesh. States like Goa, Himachal Pradesh, Kerala, Telangana, Tripura and West Bengal have also drafted rules regarding the formation of Rera Authority, but have not yet notified them. On the other hand Uttar Pradesh is preparing to bring the Rera rules renewed on the lines of the Center's law.
There are some constitutional constraints in the way of implementation of this law in six states of Northeastern India - Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland and Sikkim. In fact, the transfer of land ownership of these states is restricted and this aspect is being reviewed. So far, only seven states have started the process of online registration of real estate projects and agents. According to this law, state regulatory authorities can create their own websites within a year of formation. They got the discount to continue offline registration for a year.
Many people associated with the real estate sector are amazed that many states have different interpretations of the RERA Act notified by the Center and accordingly they have made their own laws. Especially in NCR area adjacent to the capital city, this problem seems to be the most serious.
For instance, the projects which are already in progress in Uttar Pradesh and Haryana have been completed and have applied for completion certificates; they have been excluded from the radius of the law. Because of this, many kind of dilemmas are also emerging in the mind of the current owners and potential buyers. Many developers of NCR had applied in the middle of October and November last year to get the certificate of completion of their projects to avoid the whip of RERA. In the upcoming months, they got the project completion certificate. Real estate experts say that in the last six months, construction of 7,500 flats in Noida-Ghaziabad is completed in 21 thousand and in Gurugram. The ready to move in flats have been handed over to Welfare Association but many of them have not been provided with basic amenities in the project.
Kerala is one of the few remaining states in the nation, which has failed to inform the real estate directive rules within the time limit.
RERA in states
By 31 July 2017, 23 states and Union Territories (UTs) have established their permanent or interim regulator.
Under RERA, each state and UT must have its own regulatory authority. Unless they register with the states in permanent or interim regulators, developers will not be able to market their ongoing or upcoming projects. For current projects where complete or acquisition certificate is not given, the last date for registration has expired on July 31, 2017
Created on Mar 8th 2018 05:03. Viewed 383 times.