State can’t weaken real estate Act, top official tells Noida homebuyers
The Real Estate (regulation and development) Act, 2016, touted to safeguard the interest of homebuyers, was proposed to protect homebuyers from unscrupulous developers. Under the Act, the states have to set up an authority, which will oversee realty projects. Builders must register with the authority before launching or even advertising their project.noida Updated: Jul 02, 2017 21:46 IST
Homebuyers should not worry because the state government cannot dilute the real estate regulatory authority (RERA) Act at per its will, said Rajiv Ranjan Mishra, joint secretary, the ministry of urban development.
Mishra, who played a key role in drafting RERA, addressed homebuyers’ questions at the Confederation of Delhi-NCR RWAs’ (CONRWA) convention at Delhi’s India International Centre on Sunday.
Homebuyers also questioned why the UP government is delaying the implementation of the Act, which was put into effect from May 1, 2016.
“Yogi Adityanath government in UP, in a communication to the ministry of urban development, assured that a real estate regulatory authority will be set up by July-end. Homebuyers should not worry on dilution of the Act because the state government cannot form RERA rules in isolation or in violation of the Central Act. There are specific guidelines to be followed while formulating the rules. UP is redrafting its rules to make way for RERA,” said Mishra.
The state government is yet to formulate a real estate regulatory authority. The delay is hurting builders and homebuyers. Builders cannot launch a new realty project without registering the same with the authority, which is yet to be put in place. Also, buyers cannot file a complaint of an anomaly in a project in the absence of an authority.
The Real Estate (regulation and development) Act, 2016, touted to safeguard the interest of homebuyers, was proposed to protect homebuyers from unscrupulous developers. Under the Act, the states have to set up an authority, which will oversee realty projects. Builders must register with the authority before launching or even advertising their project.
In Noida, 86 group housing projects have been delayed by three to four years due to a slowdown in the realty sector, affecting around one lakh buyers. In Greater Noida, around 3.5 lakh homebuyers are yet to get possession of flats that were to be delivered to them from 2012.
Noida MLA Pankaj Singh also spoke on the Act at the convention.
“Politicians and bureaucrats are responsible for the crisis created in the realty sector, due to which homebuyers have been suffering. But now CM Yogi Adityanath has made it clear to officials that solving buyers’ issues should be a priority. If there are violations, then action will be taken against the builder. My government is there to help buyers. Noida will be the biggest beneficiary of RERA in the country,” said Singh.
According to Mishra, 20 states have so far notified rules under the Act.
“Madhya Pradesh and Maharashtra have already formed real estate regulatory authorities. We are receiving many suggestions for amendments to the Act. After six months or a year, the Centre will consider amendments to make it more effective,” said Mishra.
First Published: Jul 02, 2017 21:46 IST