The Uttar Pradesh government on Wednesday said it is set to form a real estate regulatory authority by the end of next month.
Once formed, the regulatory authority will prepare specific guidelines to regulate the realty sector, which is largely unregulated and leads to complaints of harassment by homebuyers against developers.
“To safeguard property buyers’ interests, the UP government wants the real estate regulatory authority in the state to function as soon as possible. It is likely to be formed by next month,” said Navneet Sehgal, principal secretary of the information department, UP.
The state will approve of and formulate the rules necessary by the end of this month and later form the authority before the 2017 assembly elections, officials said.
The Real Estate (Regulation and Development) Act, 2016, came into force on May 1, starting the process of forming operational rules and putting in place institutional infrastructure to protect consumers’ interests and promoting the growth of the realty sector in India.
As per the notification, rules under the Act have to be formulated by the Central and state governments within a maximum of six months from the date of enactment. In addition, states are bound to form real estate regulatory authorities within a year from May 1, 2016.
The state government has also sought suggestions in this regard from all city authorities, including Noida, Greater Noida and Yamuna expressway authorities.
“Regulatory rules are a reflection of provisions mentioned in the 2016 Act. We have replied with the suggestions,” said SC Gaur, chief architect and town planner of the Noida authority.
Homebuyers hoped that the regulatory authority will help them by regulating developers and putting a stop to delayed housing or commercial projects, unwarranted penalties and poor quality of material being used
for construction .
“The good thing is that the regulatory authority will have to dispose of buyers’ complaints in 60 days. Appellate tribunals too will be required to adjudicate cases in 60 days. As of now, local authorities such as Noida, Greater Noida or even Ghaziabad for that matter do not address our issues and ask us to approach consumer
courts, thereby delaying justice,” said Uday Kumar Jain, an aggrieved buyer.
On their part, developers said the regulator will benefit the realty sector by restoring property buyers’ trust.
“We want that the real estate regulator forms guidelines in a way that covers all stakeholders involved in the business, including government agencies. For example, if a government agency does not give timebound environment clearances, fire no objection certificates, water or power connection, etc. the official responsible should face legal action under the same regulatory law. We welcome the regulator, but it should also provide litigation-free land and other clearances necessary for a project to be delivered on time,” said Amit Modi, vice-president of Confederation of real estate developers association of India (Credai), Western UP.