The Ministry of Housing and Urban Poverty Alleviation (MHUPA) has decided to move the apex legislative authority Supreme Court for clubbing all the cases against the Real Estate (Regulation & Development) Act (RERA), which have been at the several high courts of the country. The ministry of housing now wants all RERA cases to be decided by one court. All these petitions have challenged the constitutional validity of the law.
The Real Estate (Regulation and Development), was enforced on May 1, given that most of the states and UTs failed to notify, their
RERA norms within this period, government had sanctioned additional time of 3 months and it’s ending on July 31. While government is expecting states and UTs to submit their respective regulations, developers and realtors are racking up against the several rigid provisions of RERA. The housing ministry has proposed to the ministry of law to transfer all the petitions to the Supreme Court, which have challenged the constitutional legitimacy of this governmental policy.
Monday July 31, was the deadline for RERA registration for ongoing projects, builders and the realtors; meanwhile Goa has declared, the state won’t be able to notify respective RERA norms before Oct 30. For the moment, Mumbai High Court’s Nagpur bench and Madhya Pradesh High Courts have received bunches of such cases for hearing. Such cases have been posted for hearing after four weeks. A leading
property portal in Kolkata claimed that only 35-40% of the total ongoing projects have been registered by RERA authority as of now. The consumers appeared highly stressed about the fact that states and builders haven’t registered their ongoing projects with the regulatory authority.
Among these cases, the key controversy causing provision is including all on-going, under construction projects under RERA purview. RERA have retrospective effect since the projects were started, when there was no such legal binding. Accordingly, a major count of the petitions claimed that the law is unethical. Another subject that came into light is developers challenged the Centre’s right to enact the law related to the land purchase. Land issue comes under state’s jurisdiction. Withstanding which submitting land related documents of the projects to the regulator would be measured up as violation of the state right to privacy. According to the housing ministry, 23 states and UTs have notified their respective real estate regulations. Only 4 of these states have notified state rules framing up the permanent regulator, others formed interim regulators.
States and UTs that have notified their respective RERA norms, notified the rules in the presence of interim regulatory authorities or no regulatory authority, as most of these states haven’t yet formed any regulatory authority (RA) by far. Adding to that, RERA is a central law which can be fully implemented thorough state policy implementation, despite states have found diluting
RERA provisions just to safeguard most of the under construction projects from RERA realization. Sources said that there is huge last minute registrations’ pour in several states, whereas there is no permanent regulatory authority.
“Rumour has it, that states have found mitigating key provisions of central RERA in their drafts. Buyers are in doubt how far this improvised regulation of RERA can shield their interest,”- said Mr. Mahesh Somani, west Bengal RERA and realty expert.
-Somani Realtors News Network