Government Asks the States to Form Interim Regulators
Apr 10, 2017 Real Estate News
The center government is all set to ask the states to form an interim body to look and regulate the real estate sector of the respective states. Centre hopes that most of the major states will adhere to them and form a body, and hope that the states put them to good use.
The ministry of HUPA notified the final rules of Real Estate Regulation and Development Act (RERA), 2016 applicable to the five union territories Andaman and Nicobar Island, Daman and Diu, Dadar and Nagar Haveli, Lakshadweep, Chandigarh.
While the act is to come into force from 1st May 2017, the states have been asked to form a small body or designate and officer, like the principle secretary, as a regulator for the interim period.
Interim regulators will help point out the issue that the states are facing regarding the real estate sector and how to deal with them. Meanwhile, the interim regulator can discharge the basic registration process in the state. It is expected that once few states start doing this, others will follow the suit.
Till now only Haryana has appointed an interim regulator but haven’t come up with the RERA rules which are of not much use.
Gujarat and UP have notified the center regarding their rules for the RERA which are mainly builder-friendly. Gujarat has exempted all the projects registered before 1st November 2016, from the rules of RERA. This has made the ‘Fight for RERA’, which is the Home buyers Association, upset.
Other states are yet to notify their set of RERA rules, in the lines of the laws laid down by RERA.
The ministry of Urban Development is working on the RERA rules for Delhi. While the other states and union territories with legislature will come up with their own set of RERA rules or will have an option to adopt the HUPA notified rules.
The rule is expected to decrease the inconsistencies by the developers in completing the project and handing over of the possession. The delay often costs the buyers heavily. They end up paying EMI and rent together for a long period of time than expected leading to their financial imbalance. According to the rule if the project is delayed, then the buyer is free to terminate the agreement and the developer is supposed to return the money to the buyer within 45 days with the interest rate offered by the SBI’s highest marginal cost. Also, if the buyer does not wish for the termination then the developer is bound to pay the buyer a monthly interest of 10.5 percent.
Developers will not have to disclose the income tax returns now. Also, the fees for the registration of projects with the authorities have been reduced to half.
The ministry of HUPA notified the final rules of Real Estate Regulation and Development Act (RERA), 2016 applicable to the five union territories Andaman and Nicobar Island, Daman and Diu, Dadar and Nagar Haveli, Lakshadweep, Chandigarh.
While the act is to come into force from 1st May 2017, the states have been asked to form a small body or designate and officer, like the principle secretary, as a regulator for the interim period.
Interim regulators will help point out the issue that the states are facing regarding the real estate sector and how to deal with them. Meanwhile, the interim regulator can discharge the basic registration process in the state. It is expected that once few states start doing this, others will follow the suit.
Till now only Haryana has appointed an interim regulator but haven’t come up with the RERA rules which are of not much use.
Gujarat and UP have notified the center regarding their rules for the RERA which are mainly builder-friendly. Gujarat has exempted all the projects registered before 1st November 2016, from the rules of RERA. This has made the ‘Fight for RERA’, which is the Home buyers Association, upset.
Other states are yet to notify their set of RERA rules, in the lines of the laws laid down by RERA.
The ministry of Urban Development is working on the RERA rules for Delhi. While the other states and union territories with legislature will come up with their own set of RERA rules or will have an option to adopt the HUPA notified rules.
The rule is expected to decrease the inconsistencies by the developers in completing the project and handing over of the possession. The delay often costs the buyers heavily. They end up paying EMI and rent together for a long period of time than expected leading to their financial imbalance. According to the rule if the project is delayed, then the buyer is free to terminate the agreement and the developer is supposed to return the money to the buyer within 45 days with the interest rate offered by the SBI’s highest marginal cost. Also, if the buyer does not wish for the termination then the developer is bound to pay the buyer a monthly interest of 10.5 percent.
Developers will not have to disclose the income tax returns now. Also, the fees for the registration of projects with the authorities have been reduced to half.
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