The much awaited Real Estate (Regulation and Development) Act, 2016 came into force on Sunday. The countdown for making operational rules, setting up of regulatory authorities and appellate tribunals has also begun.
The act was passed by the Lok Sabha on March 15. The rules are to be framed by the Central government and the state governments within a maximum period of 6 months while the authorities and tribunals are to be formed in one year.
Setting up of Real Estate Regulatory Authorities (RERA) with whom all the real estate projects have to be registered and appellate tribunals, for adjudication of disputes, are the key features that provide early relief and protection to buyers.
The act will bring relief to residents as majority of the builders in Noida and Greater Noida have either delayed the projects or have cheated buyers.
“It will be helpful for us and we hope that government makes the rules as soon as possible, as a number of cases of aggrieved buyers are pending in Noida, Greater Noida and Ghaziabad,” Alok Kumar, president of federation of apartment owners’ association, Ghaziabad, said.
“Implementation of the act in different states still remains a challenge. It depends on the will power of the state government to enforce the new act. Selection of a regulator will be a major challenge. If the government appoints one of their own as a regulator, it will hard for the homebuyers to get justice,” Abhishek Kumar, president of new era flat owners welfare association (NEFOWA), said.
Builders demanded transparency in clearances by the government bodies. They demanded accountability from the government agencies that delay clearances and eventually leads to delay in projects.
“Government agencies responsible for issuing permits should be brought under the law and made accountable for undue delays. On an average, it takes 2-3 years to start a project after land is acquired; by this time the cost of land rises by 24-30% due to hefty interest payments as bank loans are not available for procuring important raw materials. The added costs ultimately gets passed on to the customer,” Amit Modi, vice-president, confederation of real estate developers association (CREDAI), western UP, said.
Builders also demanded a single window system to facilitate clearances for their projects.
In a bid to press for the act, homebuyers had earlier initiated a twitter campaign with the handle ‘#passrerabill’ and ‘#fightforRERA’ and had tagged Prime Minister Narendra Modi, Union minister of urban development, Venkaiah Naidu and Congress vice-president Rahul Gandhi.
The homebuyers’ association had held several meetings with Gandhi and Naidu, who had given the assurance to pass the Bill. HT was the first to report about their campaign.