The Tamil Nadu government will launch more housing complex under RERA cognizance. For making it happen the government has decided to pare the numbers of residential apartments capped in the soaring Act. The central act covers project with nine units. State rule suggests, apartments with five or more units, constructed beyond an area of 500 sq mtr would fall under state RERA ambit. These buildings with 5 or more units are likely to have commercial provision.
As a matter-of-fact this state rule is well-suited with the central RERA norms. Now, projects with four units not beyond 500 sq mtr plot size will only be for self-occupancy, whereas projects crossing area size 500 sq mtr will be possibly designed for commercial sale.
RERA will secure homebuyers interest, and expected to retrieve accountability and clarity in real estate sector. Every up-coming and on-hand project should be registered under RA, whereas developers need to deposit 70% of the total booking amount in a separate bank account. The fund would be used only for existing project development purpose.
Tamil Nadu released its state RERA draft on Jan 2017, yet the state government hasn’t notified the draft rules for the Act. As a result RERA has been deferred rolling out in this state. Only after notification, developers of on-going projects, which haven’t received OC, should apply for the certificate to RA (Real Estate Authority). The projects yet to receive their OC will be under the scanning system of RERA regulation.
On the contrary, projects with complete possession status along with OC certificate, services had been handed over to the local authority for maintenance and common areas and facilities provided to the resident’s welfare association for maintenance won’t attract RERA rules. Any project, at initial development stage if needs any change in planning (revamp, addition, re-design) of upcoming phases (prior to the notification of the draft rules) must need 2/3rd residents’ consent on agreeing the same.
Giving example of Tamil Nadu, Kolkata RERA expert Mr. Mahesh Somani stated, “West Bengal is yet to notify its drafts alike Chennai. We hope that within this extended period of 3 months, the state will notify their norms.’’
Speaking about dilution of RERA by state governments Somani also added, ‘’ Government will definitely take positive step familiar with the central act. As along with the homebuyers, government itself is outraged of the increasing notoriousness of the builders and promoters.”
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