Several realty projects are on the edge as states such as West Bengal and Kerala have not appointed real estate regulators, a mandatory step under a landmark law designed to protect homebuyers.
Developers will not be able to market their projects — ongoing or new — till they register with either the permanent or interim regulator in states. For ongoing projects, where completion or occupancy certificate has not been given, the deadline for registration is July 31.
“Not registering a project with the regulator is a violation of the Real Estate Regulatory Authority (RERA) Act. But we can’t penalise the developers as states have not appointed regulators,” said a housing and urban affairs ministry official.
A regulator has to register a project within a month of receiving an application, failing which the registration will be automatically considered done.
Maharashtra, Madhya Pradesh and Punjab have permanent regulators, while 17 more states have appointed temporary ones. Union territories Dadra and Nagar Haveli, and Daman and Diu are under the Maharashtra regulator.
Developers of ongoing projects are worried as the central government is unlikely to extend the July 31 deadline.
{{/usCountry}}Developers of ongoing projects are worried as the central government is unlikely to extend the July 31 deadline.
{{/usCountry}}“If states have not set up a regulator, there is not much a developer can do. We are telling the states to expedite the process. We don’t want any disruption in ongoing projects,” said Geetambar Anand, the president of the Confederation of Real Estate Developers’ Association of India.
The housing and urban affairs ministry also can’t do much except request the states to speed up the process of appointing regulators.
Housing minister M Venkaiah Naidu has written to chief ministers several times in the past month.
“In the absence of rules and regulatory authority/ appellate tribunal, real estate activities would be adversely affected post 31 July 2017,” he wrote on June 21.
His ministry is also saddled with complaints that interim regulators in several states were refusing to register projects, saying their online portal is not ready.
“Not having a web portal is no excuse for not registering properties. Internal regulators can start the process offline,” a ministry official said.
States have been given a year to set up the website that will host details of every project such as layout plan and completion time. Developers will have to disclose all information, such as layout plan and project time schedule, to the regulator.
Also, of the 36 states and Union territories only 20 states have notified the rules. The law becomes ineffectual if rules are not notified.