The implementation of the Real Estate Regulation (and Development) act, 2016, in the country is woefully short of expectation even almost a year after all its sections become law on May 1, 2017.
Of the 28 states (the act is not applicable in J&K) where the act is to be enforced ,only three have appointed a permanent regulator ,only 14 states have functional web portals only 20 states have notified the rules . All seven union territories, powers, have notified the rules.
Maharashtra, Madhya Pradesh & Punjab have appointed permanent regulators under RERA. All other states where RERA is being implemented are functioning with interim designated regulators, a report by real estate consultancy firm knight frank said.
To enable customers to easily access project information, RERA says all states must maintain a well-based portal where all developers will upload project information. But states like Haryana, Assam, Kerala, Telangana and Orissa do not have these portals.
At the same time, the state RERA rules, wherever implemented, are not very clear about registration of on-going projects launched before all sections of the RERA act became law on May 1, 2017. The law came into effect with 59 of 92 sections notified on May 1, 2016, exactly a year, the remaining sections came into force.
This has left large number of buyers unprotected and with heart burn. All ongoing projects had to be registered with RERA by august 2017. But even today a number of projects which has not shown occupation certificates from the authorities remain unregistered with RERA.
The report said states like west Bengal have not even notified the act. The seven north eastern states too, have not notified RERA because of certain constitutional obligations.
The appointment of an authority under RERA in every state was expected to go a long way towards regulating the sector and making it transparent.
Under the act, no project can be launched without being registered with RERA, and this being registered with RERA, and this, can be ensured only after the projects as secured approvals from all the authorities concerned. Once registered with RERA in the state, developers can market a project.