The real estate act is finally a reality after a nine-year wait, as it came into force on May 1. The promise is to protect the rights of consumers and usher in transparency in a largely unregulated sector. But only 13 states and Union Territories (UTs) have so far notified rules and fewer still have formed an authority to enforce the provisions of RERA.
In March 2016, both houses of the Parliament passed the real estate bill. It is a model law, which means it is up to the states to draft and pass their own laws according to the guidelines, as land is a state subject. This, point out critics has allowed states the liberty to dilute the provisions of RERA. The motive of the Act was to ensure timely handing over of projects by builders, compliance by builders with necessary clearances and preventing diversion of project funds. But the purpose would be defeated if states water down the provisions of the Act.
The Centre had asked all states to notify the Act before April 30. All real estate developers and agents are to register with their respective state regulatory authorities by July 30. A status check: