As many as 26 states and union territories have notified rules under the Real Estate (Regulation and Development) Act, 2016 (RERA) and 14 states and union territories have made a fully operationalised web portal for enabling online registration of real estate projects and agents. Till date, a total of 20,000 projects have been registered with the Regulatory Authorities across the country, as per the latest data shared by the housing and urban affairs ministry.
Six states and union territories have established permanent Real Estate Regulatory Authority and 23 States/UTs have established interim Real Estate Regulatory Authority. In Gujarat, permanent Appellate Tribunal has been set up. Ten other states and union territories have appointed an interim Appellate Tribunal under the Real Estate Act, the data said.
As for the total number of projects registered across the country, the number has touched 20,000 with Mumbai leading the pack with over 11,000 ongoing projects getting registered with the Maharashtra Real Estate Regulatory Authority.
Officials said that 20,000 ongoing real estate projects have been registered so far. “This is not a small number in this short time,” they said, adding Rera registered projects should from now on be used as a marketing tool by real estate developers to promote projects. “RERA registered projects have a better chance of attracting buyers to invest in a project.”
Six states and union territories that have constitutional issues as land in these states belong to the community or autonomous councils include Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, and Sikkim.
The central Real Estate (Regulation and Development) Act (RERA) came into effect on May 1, 2017, exactly a year after it was passed by the Parliament. As per the Act, developers, projects, and agents had till July 31 to mandatorily register their projects with the Real Estate Regulatory Authority. Any unregistered project would be deemed to be unauthorised by the regulator.
Under RERA each state and UT will have its own Regulatory Authority (RA) which will frame regulations and rules according to the Act. But not all states have a real estate authority in place yet and some with one have diluted the original provisions as per the Central Act.
RERA covers both new project launches and on-going projects where the completion/occupation certificate has not been received.
According to the provisions of the Act, for ongoing projects which don’t have a completion certificate issued, developers had to make an application to the authority for registration of projects within a period of three months from the date of commencement of this Act which was May 1.
Under RERA, a developer cannot sell residential or commercial units in a project, ongoing or new, unless those are registered with the regulatory authorities.
Most states have diluted rules to favour developers. Many states have moved away from the Centre’s definition of ongoing projects and excluded projects for which lease deeds of either 50 percent or 60 percent of the apartments have been executed or for which partial completion or occupation certificates have been obtained by the developer. This leaves little hope for homebuyers stuck with old unfinished projects.
On December 6 last year, the Bombay High Court had upheld the constitutional validity of the Act and its applicability to ongoing projects across states. The court also granted RERA authority more powers to grant additional time in exceptional cases to builders to complete projects. This extra time is to be granted to developers in compelling circumstances on a case-by-case basis, the order had said.
“In a welcome clarification from the Bombay High Court, the RERA Authority would have to view the entire act holistically and appreciate provisions of the beneficial legislation. The court has also clarified that even the association of allottees may have the first right to develop in case of promoter default, however RERA Authority could in light of the purpose of ensuring completion of the development work within the stipulated time, if the authority does not find any deliberate lapse on the part of the promoters and there are exceptional circumstances compelling in nature which prevented the promoter to complete the development work, then it shall necessary for the authority to continue the same promoter under its directions,” says Sudip Mullick who leads the real estate and infrastructure team at Khaitan & Co.