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Respite for realtors: Unlisted projects can be marketed till July 31

NEW DELHI: Builders can continue the marketing of their ongoing projects till July 31, 2017, even if they are not registered with the Real Estate Regulatory Authority (RERA). However, no new project can be launched without it being registered with RERA.

As the new real estate law requires all projects to be registered with RERA before marketing it, many developers are postponing their marketing activities.

Allaying all the speculation, spokesperson of union ministry of housing and urban poverty alleviation (HUPA) said that according to the Real Estate (Regulation and Development) Act (RERA), existing ongoing projects need to file for registration with their respective regulatory authority by July 31. Till then the developers can continue their marketing and other activities like construction and securing the approvals from the existing authorities.
In the next three months, all the legal infrastructure required to implement RERA will be in place, which will enable the developers to register the ongoing projects to apply for registration, the spokesperson said. Only those developers of on-going projects, who do not file for registration of a project with the author ity, will have to stop advertising or marketing of the project.

According to the RERA 2016, “Projects that are ongoing on the date of commencement of this Act and for which the completion certificate has not been issued, the promoter shall make an application to the authority for registration of the said project within a period of three months from the date of commencement of this Act.”
The spokesperson said the Act is clear and, therefore, there should not be any confusion about this.

However, no new project can be launched till it is registered with the regulator. At the same time, the law has also prohibited any pre-launch marketing of a real estate project.Chairman of Confederation of Real estate developers association of India (CREDAI) Getamber Anand said that rules are clear but many developers are extending the provision for new projects to ongoing ones, which is wrong. However, he said the government must expedite the processes of creating the legal infrastructure.

None of the states barring Madhya Pradesh and Maharashtra have created the necessary conditions like promulgation of rules and appointment of regulator to enable a project to be registered.

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