Real estate regulatory bill passed, homebuyers sceptical about implementation
The much-awaited Real estate (regulatory and development) bill was passed by the Lok Sabha on Tuesday without any amendments. Associations of homebuyers, however, said implementation of the act in Uttar Pradesh is a challenge.noida Updated: Mar 16, 2016 01:44 IST
The much-awaited Real estate (regulatory and development) bill was passed by the Lok Sabha on Tuesday without any amendments. Associations of homebuyers, however, said implementation of the act in Uttar Pradesh is a challenge.
The bill regulates transactions between buyers and promoters of real estate projects. It establishes state-level regulatory authorities - Real Estate Regulatory Authorities (RERAs), with whom promoters will have to register all projects above a certain size.
Projects above 500 sq metres or with 8 flats will have to be registered with the regulator.
“This was the first part of the battle - to get a uniform bill passed in the Parliament. Now, we will fight for implementation of the bill in Uttar Pradesh as a huge number of buyers are seeking houses in Noida, Greater Noida and Ghaziabad,” Abhishek Kumar, president of new era flat owners association (NEFOWA), said.
Homebuyers said the heads of the authorities in Noida, Greater Noida, Yamuna Expressway and Ghaziabad are not willing to share their powers with a regulatory authority, which may cause a delay in implementation.
“The UP Apartment Act was passed by the assembly in 2010. It took the Noida authority four years to implement the act. Similarly, officials will certainly take time to implement the new act and we will have to keep the movement alive till then,” said Alok Kumar, president, apartment owners’ association (AOA).
Flat owners, who are already in a legal battle with builders, feel that the new act can be helpful if the state government implements it stringently.
“Under the provisions of the existing UP Apartment Act, builders can be jailed for up to six years for flouting floor area ratio (FAR) rule. However, the competent authority never prosecuted any builder despite various violations,” Shweta Bharti, member of NEFOWA, said.
On the other hand, builders said the government should give the sector industry status and also start a single-window system to seek clearances.
“We are ready to work according to the new law but there are certain steps we want the government to take to develop this sector. A simple single-window system and an industry status, to procure cheaper loans, will help us cope with the new system,” Amit Modi, president of CREDAI (western UP), said.