The implementation of the Real Estate Regulation (and Development) Act, 2016, in the country is woefully short of expectations even almost a year after all its sections became law on May 1, 2017.
Of the 28 states (the act is not applicable in J&K) where the act is to be enforced, only 3 have appointed a permanent regulator, only 14 states have functional web portals, and only 20 states have notified the rules. All 7 Union Territories, however, have notified the rules.
Maharashtra, Madhya Pradesh and Punjab have appointed permanent regulators under RERA. All other states where RERA is being implemented are functioning with interim designated regulators, a report by real estate consultancy firm Knight Frank said.
To enable customers to easily access project information, RERA says all states must maintain a web-based portal where all developers will upload project information. But states like Haryana, Assam, Kerala, Telangana and Orissa do not have these portals.
Even in states like Uttar Pradesh, Bihar, Rajasthan and Andhra Pradesh, among others, where web-based portals have been launched, the information uploaded by developers is so scanty that it is practically of no use, said Knight Frank Chief Economist and National Director (Research) Samantak Das.
At the same time, the state RERA rules, wherever implemented, are not very clear about registration of on-going projects launched before all sections of the RERA Act became law on May 1, 2017. The law came into effect with 59 of 92 sections notified on May 1, 2016. Exactly a year later, the remaining sections came into force.
This has left large number of buyers unprotected and with heartburn. All ongoing projects had to be registered with RERA by August 2017. But even today a number of projects which have not secured occupation certificates from the authorities remain unregistered with RERA.
The report said states like West Bengal have not even notified the Act. The 7 Northeastern states, too, have not notified RERA because of certain constitutional obligations.
The appointment of an authority under RERA in every state was expected to go a long way towards regulating the sector and making it transparent.
Under the Act, no project can be launched without being registered with RERA, and this can be ensured only after the project has secured approvals from all the authorities concerned. Once registered with RERA in the state, developers can market a project.
According to the report, most states and UTs have implemented RERA half-heartedly, thus failing to create an effective regulator.
It said the Maharashtra RERA was the most active in the country and the only exception where the regulator’s proactive functioning had set new precedents. Of the more than 25,000 projects registered under RERA across India, 62% are in Maharashtra.
Poor implementation of RERA in various states has had an adverse effect on the revival of the realty sector. Das said Maharashtra has witnessed a revival in demand for real estate following the proper implementation of the act. Proper implementation encourages investment in real estate as it brings transparency to the sector, he said. (TNN)
Note: All Inforamtion provided by third party source.