The much awaited Real Estate Reforms Act which is stipulated to come into effect from May 1st, is now facing a hindrance owing to the “chaltahai” nature of the state governments as most of the states and union territories are yet to form the regulatory authority and the stipulated standards framed by these regulators to ensure proper implementation of the act in the state. Till now only 13 states and Union Territories (few of which include Uttar Pradesh, Gujarat, Odisha, Andhra Pradesh, Maharashtra, Madhya Pradesh and Bihar) of the 29 states and 7 Union Territories have notified the norms while the present scenario of the rest are still in the dark.
RERA which was originally passed in March 2016 as the Real Estate (Regulation and Development) Bill by the parliament consists of 92 sections aim at creating value for the consumer. According to Housing and Urban Poverty Alleviation Minister M Venkaiah Naidu, this act will ultimately make the consumer “the king”, as most of it is targeted towards protecting the buyer from the plethora of unscrupulous activities which exist in this sector. The three prime factors which RERA will bring forth are “accountability, transparency and efficiency” while clearly defining the rights and responsibilities of both buyers and developers.
As per the RERA guidelines, the regulations are to be defined by the regulatory bodies from each state respectively. Last year, The Housing Ministry developed the comprehensive statutes for five out of the seven Union Territories (Andaman and Nicobar Islands, Dadra and Nagar Haveli, Daman and Diu, Chandigarh, and Lakshwadeep), while for Delhi NCR the Urban Development Ministry framed the rules similarly. Correspondingly, similar norms will have to be prepared by the other states respectively. The Urban Development Ministry already has sent the proposed model rules to every state and Union Territory as a framework for preparation of the rules. Post this, it is obligatory for the state and Union Territories to develop the rules and notify. The states that are yet to notify will be exposed to public pressure and common masses can even approach the court in case the state delays to let know. Also it has been highlighted in some reports that some of the prime provisions have been diluted by some states which were then made a note of and informed by the ministry to further correct them.
The prime focus of RERA is to address and correct issues which lead to construction disputes and ill-faith of the buyer, like delays, price, quality of construction and deceitful developers who sometimes dupe the buyer. The governing regulations by the state regulatory bodies will curb these disputes and result in a much transparent and efficient system in the real estate sector which will make value delivery to the consumer a key objective.
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