The Central Government of India will notify the rules of the Real Estate Act soon, moving another step toward operationalizing the bill which seeks to regulate the Real Estate sector, bring transparency in the function and help protect the consumer rights. The Ministry of Housing and Urban Poverty Alleviation (HUPA), which is responsible for making such rules for Union Territories of India without a legislature, is likely to notify them within ten days, a spokesperson said.
After incorporating advice from the public, the ministry has assigned the draft rules to the Ministry of Law and Justice for quality control senior officials of both the ministries will meet tomorrow for finalizing the draft notification, the spokesperson said. As per an announcement circulated in April this year, Real Estate rules were to be notified by within six months or October 31 this year of the Real Estate Regulatory Act coming into play.
The ministry's April notification came into effect 69 of the 82 sections of the Act from May 1 this year. Rules of real estate in India to be notified by the Ministry of Housing and Urban Poverty Alleviation (HUPA) apply to Union Territories of Andaman & Nicobar Islands, Chandigarh, Dadra and Nagar Haveli, Daman & Diu and Lakshadweep. The Ministry of Urban Development will come up with such laws for the National Capital Region of Delhi while other states and Union Territories will be issued with their rules.
The most awaited Real Estate Regulatory and Development Bill, 2016 was passed by Rajya Sabha and by Lok Sabha on March 10 and March 15, 2016, respectively. The Act, which is brag about, show off as a major reform measure to regulate the large sector of real estate in India, requires registration of all projects with state level Real Estate Regulatory Authorities to ensure the protection of the interests of both buyers and builders.
The Act also requires developers to deposit 70 percent of the payments made by allotters in a different bank account to ensure that such funds are not diverted to other properties in India. It also provides for forcible detention of up to three years for developers and one year for real estate broker and buyers for breaking the law of any provision of the Act. As per the functionalities of the Act, Real Estate Regulatory, and Development Authorities of the bill and Real Estate Appellate Tribunals have to start by the end of April 2017, and the entire Act is to come into play the day after.
The remaining segments of the bill that have to be notified relate to visible features such as the functions and rights, duties of promoters, and obligations of allotters, prior registration of India real estate properties with the regulatory authorities, recovery of interest on penalties, enforcement of orders, offenses, adjudication, and sanctions. Considering that there a year left for the regulators to be set up by the states, developers are expected to speed up work to avoid the stringent provisions of the new real estate regulatory bill.
Rahul Kumar, the author of the above article, is working in a real estate firm offering services related to the Commercial and Residential properties in India. He is also a blogger and a web enthusiast who writes articles and blogs on the business properties in India and Metropolitan cities.