Real Estate (Regulation and Development) Act, 2016 came into force on May 1, 2016 culminating the eight year long efforts in this regard and setting in motion the process of making necessary operational rules and creation of institutional infrastructure for protecting the interests of consumers and promoting the growth of real estate sector in an environment of trust, confidence, credible transactions and efficient and time bound execution of projects.
Ministry of Housing & Urban Poverty Alleviation had notified 69 of the total 92 sections of the Act. A proposal for a law for Real Estate was first mooted at the National Conference of Housing Ministers of States and Union Territories in January, 2009.
Early setting up of Real Estate Regulatory Authorities with whom all real estate projects have to be registered and Appellate Tribunals for adjudication of disputes is the key for providing early relief and protection to the large number of buyers of properties.
The Act empowers appropriate Governments to designate any officer preferably Secretary of the Department dealing with Housing, as the interim Regulatory Authority until the establishment of Regulatory Authority under the provisions of the Act.
Under the directions of the Minister of Housing & Urban Poverty Alleviation Shri M. Venkaiah Naidu, a Committee chaired by Secretary (HUPA) has already commenced work on formulation of Model Rules under the Act for the benefit of States and UTs so that they could come out with Rules in quick time besides ensuring uniformity across the country.
Major dilutions under the Realty Act
States such as Odisha and Bihar have notified rules that are completely in sync with the one notified by the Union housing and poverty alleviation ministry.
Haryana’s draft rules have completely left out disclosures by builders on the sanctioned plan, layout and specifications at the time of booking with all subsequent changes till date.
In Maharashtra, a provision has been included to allow builders to take out or divest from a project after occupancy certificate has been issued. This means, the builder can pull out its entire investment before completion of common areas, facilities and amenities.
In UP, the norms related to compounding of offences have been diluted as no specific amount has been mentioned.
In Delhi, the Urban Development Ministry has allowed relaxation, where rules specify that promoters need to provide details of only those court cases which have been disposed of during the last five years.
Till 29th April, 2017, 13 states and Union Territories had notified their final rules.
The Indian Lawyer