NEW DELHI: The central government is aware of the ambiguity over rules of Real Estate Regulatory Act in several states where authorities are so far not in place and is trying to address the issue.
“We are hopeful that authorities for rest of the states will be in place by July 31. In the meanwhile we are trying to address all the grey areas coming into light during the implementation of the act and the vacuum formed in the absence of such authorities,” said Rao Inderjeet Singh, minister of state for planning, urban development and housing and urban poverty alleviation.
So far, 11 states and 7 union territories have notified state rules while rest are in the process. Only three states i.e. Kerala, Madhya Pradesh and Maharashtra, have online portals for registration of stakeholders. Singh was speaking at India Realty Congress 2017 organised by ETRealty in association with NAREDCO here.
Anthony De Sa, IAS (r), chairman, RERA & former chief secretary of Madhya Pradesh, however, clarified that stakeholders have to only apply for registration of ongoing projects by 31July in order to comply with RERA. “Until approval of your project is rejected, you have nothing to worry about,” he said. Singh added that though the Centre has formed the Real Estate (Regulation and Development) Act, 2016, it has limited powers if states delay implementation of laws. The Real Estate (Regulation & Development) Act, 2016 was notified by the ministry of housing and urban poverty alleviation on May 1last year by enforcing 59 sections of the Act. In April this year the remaining 32 sections of RERA were also notified, bringing RERA into full force from May 1, 2017.
States have another three months starting May 1for notifying RERA rules and set up local regulators. All real estate projects and property agents also have to be registered with regulatory authorities by July 31.Following implementation across the country, transparency levels are expected to grow. According to Sriram Kalyanaraman, MD & CEO, National Housing Bank, increased transparency will bring in more money in the real estate sector post the Real Estate (Regulation and Development) Act, 2016.
A major question raised at the event was about registration of ongoing projects. National Real Estate Development Council (NAREDCO) will be undertaking a handholding exercise for all stakeholders, said Rajeev Talwar, chairman of National Real Estate Development Council NAREDCO.