Real estate regulatory Act comes into force

The much-awaited Real Estate (Regulation and Development) Act, 2016 comes into force from Sunday with the Government notifying it during the last week.

The Act, which envisages regulating the real estate industry by bringing in transparency, is set to protect the interests of consumers and promote the growth of the sector in an environment of trust, confidence, credible transactions and efficient and time-bound execution of projects.

The Ministry of Housing & Urban Poverty Alleviation on Wednesday notified 69 of the total 92 sections of the Act bringing it into force from May 1 culminating eight-year efforts in this regard. A proposal for a law for real estate was first mooted at the National Conference of Housing Ministers of States and Union Territories in January, 2009.

As per the notification, rules under the Act have to be formulated by the Central and state Governments within a maximum period of six months. The Ministry of HUPA would make rules for Union Territories without legislatures while the Ministry of Urban Development would do so for Delhi.

Setting up of Real Estate Regulatory Authorities (RERA) with whom all real estate projects have to be registered and Appellate Tribunals for adjudication of disputes is the key for providing early relief and protection to the large number of buyers of properties.

Regulatory Authorities, upon their constitution, get three-month time to formulate regulations concerning their day-to-day functioning. Likewise, Real Estate Appellate Tribunals will be formed within a maximum period of one year i.e by April 30, 2017. These fast-track tribunals will decide on the disputes over the orders of regulatory authorities within 60 days.

A committee chaired by Secretary (HUPA) has already commenced work on formulation of Model Rules under the Act for the benefit of States and UTs so that they could come out with rules in quick time besides ensuring uniformity across the country. The ministry will also will come out with Model Regulations for regulatory authorities to save on time.

The remaining 22 Sections to be notified relate to functions and duties of promoters, rights and duties of allottees, prior registration of real estate projects with Real Estate Regulatory Authorities, recovery of interest on penalties, enforcement of orders, offences, penalties and adjudication, taking cognizance of offences etc.