The Real Estate (Regulation and Development), 2016 Act popularly known as RERA came into effect from 1 May 2017, as was originally stipulated a year ago.It is not as if the states have been caught unawares – they knew this was coming well beforehand. However, as it stands, only 13 States, including the seven Union Territories (Andaman & Nicobar Islands, Chandigarh, Dadra & Nagar Haveli, Daman & Diu, Delhi, Lakshadweep Islands and Puducherry) have notified rules appurtenant to the law.In addition to this, there are a few concerns related to the Act. The formal authority (Real Estate Regulatory Authority), which will implement the rules and regulations of the Act has nobeenconstitutedimostcases. So a developer who has to get his project approved still does not know who togo to. If a developer faces a loss of revenue on account of such authority not having been constituted in time, it will be interesting to see who would be held legally liable
Public authorities such as development authorities and housing boards etc. are well within the ambit of this law since the term ‘promoter’ includes such authorities as well. However, so far there is no indication that these public authorities, which also develop real estate, have come up with a new compliance framework under this law.Uttar Pradesh has set forth certain exemptions to the applicability of the law to on-going projects, some of which are legally questionable, such as the use of a ‘partial completion certificate’ issued under the provisions of the Uttar Pradesh Apartment Ownership Act 2013. Technically, this is what could be called a ‘dilution’ of the spirit of the law, something that other states may also be trying to do to protect the interests of developers – which may explain why only a handful of states have actually notified rules and regulations in the first place.Again, with respect to Uttar Pradesh, while the law permits setting up of two or more authorities within the state for better geographical coverage and speedy disposal of cases, it would appear that the state has elected to constitute only one such authority at Lucknow.The largest number of new real estate projects within the Uttar Pradesh would arguably be within the district(s) of Ghaziabad and Gautam Buddha Nagar as part of the National Capital Region, yet the developer of a project launched here would have to seek approval all the way from Lucknow (even though other approvals are generally local).Once the law comes into effect, developers can no longer solicit investors or purchasers without approval of the authority. This may explain why the last quarter saw a rush of new
launches. It is possible that third party, below-the-radar soliciting for projects may continue such as marketing project through closed groups.As regards looking at the enforcement of this law proactively, it is possible to have existing local building control authorities – such as municipal bodies, development authorities, town planning departments, gram, zilla panchayats or block development offices – compile a list of such on-going projects in their jurisdictions for onward transmission to the proposed Real Estate Regulatory Authority.In fact, such offices of local authorities can become collection points for the application itself and make the Real Estate Regulatory Authority’s job much simpler by collating the necessary information during the course of according approval to building plans, reducing both redundancy and time taken to process such an application. Building plan approval, This means that an applicant for building permission must be responded to within a period stipulated under the law (30 days to 60 days).
Note: All Inforamtion provided by third party source.