Long wait for buyers: Real Estate bill to take 1-yr to become functional
The bill gives states up to six months to frame rules for carrying out the provisions of the legislation once it’s notified. It is likely to be taken up by the Lok Sabha on Monday and will come into force after the President’s assent.india Updated: Mar 12, 2016 00:48 IST
Homebuyers will have to wait for anywhere between six months and one year before they can knock on the door of a real-estate regulator for redressal, once the Real Estate (Regulation and Development)bill cleared by the Rajya Sabha on Thursday comes into force.
The bill gives states up to six months to frame rules for carrying out the provisions of the legislation once it’s notified. It is likely to be taken up by the Lok Sabha on Monday and will come into force after the President’s assent.
Besides framing rules, states will also have to constitute the real estate regulatory authority (RERA) comprising a chairperson and two members. Under clause 20 of the bill, states have been given a year from the date the law comes into force to establish the regulatory authority.
In the interim period, states can designate any officer — preferably the secretary of the department dealing with housing — as the regulator to hear buyers’ complaints.
“Once the law is notified, we will inform the states to draft their rules. The regulator will not become operational from the day the law comes into force. It will take at least a year before formalities are completed and the regulator becomes functional,” said a senior official of the housing and urban poverty alleviation ministry that is piloting the crucial law to regulate the real-estate sector.
An official said setting up a regulator is a time-taking process. “The state will have to first set up a selection committee headed by a high court judge or his nominee to recommend names for the post of regulatory authority,” the official added.
For developers, the move means they will not have to register their projects — mandatory under the new law — if they complete them before the regulator is established as the law covers ongoing projects where completion/occupancy certificate has not been given.
The housing ministry is planning to draft model rules that will be sent to states to assist them in framing their regulations. “The central Act will be the benchmark based on which states will frame their own rules,” the official added.