The central government had passed Real Estate (Regulation and Development) Rules (RERA Act 2016) lasy year. All states were asked to appoint the RERA regulator by April 30, 2017. However, with less than three weeks for the deadline to expire we do not see any RERA Regulator in sight in almost all states including Karnataka.
Status of RERA Regulator in States & UTs
- Madhya Pradesh is the only Indian state to appoint a RERA regulator.
- Out of remaining 28 states (MP already has one), states such as Haryana, Maharashtra, Punjab, Kerala, and Rajasthan have put in place an interim regulator.
- Uttar Pradesh, Gujarat, Andhra Pradesh, Odisha and Delhi are the only ones to have drawn up the rules.
- Out of 7 UTs, Delhi, Chandigarh, and Andaman & Nicobar Islands have put in place an interim regulator.
Thus, we can see almost all the metros such as Bangalore, Mumbai, Pune, Chennai, Hyderabad and Noida don’t have a regulator yet!
So long there is no regulator builders don’t have to register their projects. Without these regulators, the RERA Act will be ineffectual. Hence, any buyer hit by delays won’t get any relief. Don’t be surprised if builders lobbies try to delay setting up of regulators in metros to get few of their finished projects out of the purview of RERA.
Expect chaos for the first few years as the regulator will take time to settle down, understand the nuances of the RERA Act and its powers.
- RERA mandates builder to sell units on the basis of carpet area. However it is not clear what all is included in the carpet area. Does it include areas such as balconies, parking, terraces and toilets?
- For larger projects with multiple towers, will RERA be applicable on individual towers or on the entire project i.e. if few towers have the OCs does the builder need to upload information even for those towers or the entire project or only the remaining towers?
- For ongoing projects will the consent of two-third majority of buyers be required for any modification? There are several projects stuck due to TDR or other regulatory matters. A handful of buyers can create nuisance for the builder in such projects in future.
- For ongoing projects which plan approval will be submitted to the regulator? Will the regulator accept a revised master / building plan which can be different from the initial plan?
- Who shall be held responsible for delays not attributable to the builder such as regulatory changes, litigation, court orders, labour strikes, unavailability of raw materials etc?
- Whether projects, which received OC after May 1 but before the setting up of the regulator, need to be registered with the regulator?
- Who shall head a RERA regulator? A bureaucrat from the development planning agency? All planning agency whether BDA, MCD or BMC are corrupt to the core. How a bureaucrat from the same agency will ensure RERA is corruption free?
- RERA mandates brokers to get registered with the regulator. Will the regulator have the manpower / bandwidth to monitor these brokers?