NEW DELHI: The government on Thursday has clarified that the much-awaited real estate regulatory Act (RERA) will come into full effect from May 1 and has urged states to notify the rules and set up the regulatory authorities in the set time frame.
“RERA will come into full effect from 1st May, 2017, and we request the states to expedite the process” said Rajiv Ranjan Mishra, joint secretary, ministry of housing and urban poverty alleviation at the two-day national review and consultation meet organised in Delhi on the Pradhan Mantri Awas Yojna (Urban).
All the states are required to notify real estate rules including the general rules and the agreement for sale rules and establish the real estate regulatory authorities and the appellate tribunals maximum by April 30, 2017.
However, only four states of Gujarat, Madhya Pradesh, Maharashtra, Uttar Pradesh and six Union Territories have notified the final rules so far.
The government had also warned states of a serious situation of vacuum arising if necessary institutional mechanisms for the real estate regulatory Act were not put in place before the deadline of May 1 this year.
In a two-page letter to all the chief ministers of states on February 9, minister of HUPAVenkaiah Naidu said, “Real Estate Act is one of the most important reforms for the sector, which would bring benefits to all stakeholders. It is therefore, my sincere request to please bestow your personal attention to this matter so that the Act is implemented in time and in the spirit with which it was passed by the Parliament”.
The Real Estate (Regulation & Development) Act, 2016 was notified by the ministry of HUPA on May 1 last year for the six Union Territories without legislature. The HUPA rules were also supposed to act as the model rules for other states.
Walls N Roof Comment : Real Estate Regulatory Authority (RERA) is an act of the Parliament of India which seeks to protect home-buyers as well as help boost investments in the real estate industry. The Real Estate Act makes it mandatory for all commercial and residential real estate projects where the land is over 500 square metres or eight apartments, to register with the Real Estate Regulatory Authority (RERA) for launching a project, in order to provide greater transparency in the end to end process of the project. The government has given the states a deadline to submit all the rules to the Appellate Tribunal by 30th April 2017. RERA will ensure that transactions are regulated in the commercial and residential sector and ensure timely completion of the projects.