Real estate builders who default the extended timeline of the central Real Estate (Regulation and Development) Act 2016, which enforced on May 1, 2017 will be penalized under this legitimate statue. Union urban development minister M Venkaiah Naidu also warned the realtors not to supersede their earlier commitment. Plot promoters won’t be relieved from this ambitious regimen. Many other states including Tamil Nadu and West Bengal haven’t finalized their respective state RERA drafts yet. Therefore, RERA is yet to be enacted in these states.
According to RERA norms, “A plot promoter is a person who develops land into a project, whether or not the person also constructs structures on any of the plots, for the purpose of selling to other persons all or some of the plots in a project, whether with or without structures thereon.” What’s more real estate agents who promote sale or asset purchase advertised by the builders will also be bound by RERA. Plot promoters should also register their layouts with the real estate regulatory authority (RA) before launching their projects respectively.
“RERA assures home buyers to protect their interest. Bringing back the confidence of homebuyers and investors to the realty sector is its sole objective. Without the full-fledged implementation of these ambitious rules real estate market won’t prosper. Residential property sale in Kolkata has been muted for quite a long time now. State shouldn’t seek any further downtime for RERA execution, - said Mr. Mahesh Somani West Bengal RERA expert.
It’s a part of RERA’s strategy to include plot promoters inside its ambit as it would ensure that buyers will get all the promised amenities while the time of occupancy. 45% of the total possession area of a proposed project should be allotted for facilities namely roads and Open Space Reservation (OSR) to get hold of approval from setting up authorities, while the rest can be urbanized as plots. Plot promoters are mainly found misleading buyers with exclusive amenities, which are not at all linked with the project. The promised amenities of a project have seen converted in some other commercial procurement during the time of project deliverance. Only RERA can renounce such illegitimate activities through its legal route. Homebuyers should be provided every features and facilities what they pay for.
The act refers that defaulting promoters shall be liable to be punished with detention for a term which may expand up to three years or with fine which may extend up to a further 10% of the expected project cost.
- Somani Realtors News Network