Even as only 13 states have notified new real estate law, it holds out a lot of promises
Buying a home not only tugs hard on your purse-strings but also takes a psychological toll. There is many a slip between the proverbial cup and the lip between booking and receiving possession. With the Centre passing the Real Estate Regulatory Authority (RERA) Act, one hopes that buying a home becomes easier and transparent. However, with only some states/ union territories notifying the RERA rule even as the April 30 deadline neared, the question remains as to whether the law will really make a difference.
Will RERA kick in on time?
Experts believe that the law may be rendered ineffective if states do not implement the law on time. At the time of writing, only 13 states including Maharashtra, Gujarat and Andhra Pradesh have notified the final rules, while another 14 have prepared draft rules. Binaifer Jehani, Director, CRISIL Research, told the Finapolis, “In the absence of RERA, developers will not have to register projects, and hence, buyers affected by delay will not get any relief.” Alternatively,it may create a void. “Non-implementation of RERA would create a vacuum in states that miss the April 30 deadline,” said Ramesh Nair, CEO & Country Head, JLL India.
What does the RERA promise?
Developers will have to register their projects (including ongoing ones) beforehand (within three months of the law kicking in) and clearly mention all facets of their projects in their application to the RERA, failing which the RERA could revoke the registration and bar the project in question. Developers not registering their projects will have to pay a penalty of 10% of the project cost and face jail if the offence is repeated.
This story is from the May 2017 edition of The Finapolis.
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This story is from the May 2017 edition of The Finapolis.
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