The Rera Act Yet To Show Its Real Power
It is really surprising to know that only close to 20000 projects have been registered so far under the Real Estate Regulations Act. It has been since months since RERA has come into existence and the response seems to be a little low. The legislation seeking to protect the interests of home buyers has come into force last May. A lot more of the under-construction projects are still to be registered.
After the act was initiated by the previous United Progressive Alliance government and passed by Parliament in 2016, the developers were expected to declare information on various areas such as floor plan, carpet area, stage of construction etc. Yet the response from builders has been very slow.
The real estate regulatory act clearly states that all real estate projects have to be registered duly under RERA failing which there will be heavy penalty involved. It has been noted that only 6 states have complied with the rule while 23 states have set up interim ones.
The delay in the process of registration can be attributed to the fact that many private builders are favoured by the States. For example, Gujarat, Haryana and Uttar Pradesh have exempted ongoing projects from RERA. The same rule applies in Karnataka.
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