NEW DELHI: The real estate regulatory authority (RERA) will not be able to penalise builders for delays on their ongoing projects before May 1, 2017.
Officials from different states clarified that the RERA for various states can only penalise projects after they get registered with them and the builder defaults on the timeline set by them.
“We will decide the timeline for the ongoing projects as they come to us for registrations and those timelines will also be on a case to case basis,” said Anthony De Sa, chairman RERA & former chief secretary, Madhya Pradesh at a conference on real estate regulation rules organised by industry body FICCI here on Thursday.
Vini Mahajan, additional secretary, housing urban development, Punjab said RERA can only function under the specified rules and can’t go beyond that.
“Home buyers will have an option to reach out to other courts of law or RERA for resolving their issues. However, we can’t penalise a builder for earlier delay, as the Act doesn’t allows us to,” said Mahajan.
The real estate sector has been mired in projects delays due to severe cash crunch with builders and overall slowdown in the sector. The courts have also come down heavily on many big names and given favourable decisions for home buyers.
Around 826 housing projects across the country are facing delays of up to 4 years, according to a recent report from industry association Assocham.