Under the new law, states had to set up Real Estate Regulatory Authority (RERA) by May 1. The act makes it mandatory for buyers to register with RERA before launching or even advertising their project.
Though the Act came into force on Monday, it was notified by only 13 states and union territories across India. While Uttar Pradesh has not constituted the regulatory authority, Haryana is likely to implement it only by June.
As of now, this is what the Act means for realty hot spots of Noida and Gugaon.
Confusion over the Act in Noida
Developers, homebuyers as well as officials in Noida remained sceptical about the implementation and efficacy of the act, as a real estate regulatory authority (RERA) has not yet been put in place. The UP government has not constituted a RERA and appointment of staff is yet to start.
“The act has come into force but there is no RERA. So, where will we register our new or old projects. Nobody in the Noida authority or in the state government has told us how to proceed,” said a developer, requesting anonymity.
In Noida, 86 group housing projects have been delayed by three to four years due to a slowdown in the realty sector, affecting around one lakh buyers who had invested in projects that were to be delivered by 2012. In Greater Noida, around 3.5 lakh homebuyers are yet to get possession of flats that were to be delivered to them from 2012.
The Noida authority said that it will not allow new project operations to start till RERA rules are executed. “We have not received any communication on RERA from the state government. But we will adhere to the act and rules, which are into effect,” said Shishir Singh, additional chief executive officer of the Noida authority.
Some developers said that they will sell flats in their projects as per new rules. “Once RERA is formed, we will get registration of our ongoing projects done under it. We will also execute buyer-builder agreement for new sale of flats under new RERA rules,” said Anil Mithas, CMD of Unnati Fortune Group.
The Noida or Greater Noida authority were also confused over the issue. The chief executive officer of the two authorities, Amit Mohan Prasad, said, “The state government officials will tell us more about the issue.”
Implementation months away in Guragon
Homebuyers in Haryana will have to wait a while before the regulations under the much-awaited Real Estate Regulatory Act (RERA) 2016, are made binding on the builders. The state government recently brought the draft rules under RERA into the public domain inviting feedback and suggestions from residents.
Haryana is likely to implement RERA in the month of June, as the government notified and uploaded the draft rules of the Act on the website of the department of town and country planning on April 28. It also requested the residents to post their feedback by May 15 after which the issues raised by them would be scrutinised and the final draft will be approved and sent to the government for implementation.
Once the draft is notified, the government will appoint an authority which will regulate the real estate sector in the state. Dilbag Sihag, the former chief town planner, who played a key role in drafting the RERA rules, said that the government has followed a balanced approach to ensure there is unhindered growth of the real estate sector.
A senior government official of the town and country planning department, who asked not to be named, said that RERA could be implemented by the first week of June after a scrutiny of the feedback. “The issues pertaining to buyers would be resolved,” he said.
While the government officials assure that the things would significantly improve once the RERA is implemented, the buyers are not very enthused. After going through the draft rules, a large number of buyers alleged that the state government had diluted the original Act, and was giving leeway to developers by not making the regulations binding on the ongoing building projects across the city.
In Gurgaon, there are hundreds of projects along Dwarka Expressway, Manesar, SPR (Southern Peripheral Road) and the Golf Course Extension Road which are delayed, incomplete or where developers have not handed possession to buyers as per the promises made while selling the projects.