Friday 25 August 2017

Centre wants states to follow RERA in spirit

Taking a cue from a parliamentary committee that pulled up state governments, particularly those in Uttar Pradesh, Haryana and Gujarat, for diluting key provisions of the Real Estate (Regulation and Development) Act, the Ministry of Housing and Urban Affairs has asked the states to amend or formulate rules of the Act in consonance with the spirit of the central Act. “Right from the beginning, we have been telling all the states not to dilute the Act. It is good that even the parliamentary committee thinks the same and now our hands will be further strengthened,” a senior government official said.
In a report tabled in Parliament earlier this month, the committee on subordinate legislation, headed by BJP MP Dilipkumar Mansukhlal Gandhi, has asked the state governments to take all possible remedial measures to ensure that ongoing projects are brought under the ambit of the Act so as to extend the stipulated benefits of the RERA to home buyers. The committee has directed the ministry to ask the state governments to amend or formulate the rules under RERA in such a way that there is no ambiguity regarding the definition of “ongoing projects.”
Haryana and Uttar Pradesh have decided to keep outside the purview of the RERA projects that have been issued or applied for, occupancy certificates. This is a significant difference from the central RERA notified on May 1 this year that had completion certificates as the benchmark for exemption. Gujarat has diluted the key provision regarding punishment to developers for non-compliance. “In Uttar Pradesh, about 80-85% of the total projects are getting registered…We are not satisfied with what Haryana has done,” the official said. The Act came into force on May 1, 2017. So far 25 states have notified rules.
Source- Financial Express

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