How absence of RERA is affecting the growth of Real Estate in these states
- Thursday 26th October 2017
- Author: Yash Verma
The territory of Delhi along with other states of West Bengal, Chhattisgarh, Andhra Pradesh and Telangana etc. has not yet started with RERA registrations, which has put all the builders and brokers on hold.
The lack of RERA has also made it difficult for homebuyers of these states to make use of the Real Estate Act. Homebuyers cannot complain against fraudulent activities of the builders and brokers without the presence of an Authority.
The Real Estate (Regulatory and Development) Act was first introduced in May 2017 after it was passed last year by the parliament. Most of the states were not able to implement the Act on time due to delays in the final notification of the rules and absence of the respective RERA Authorities. However, the majority of the states managed to start the registrations under the Real Estate Act before the termination of the deadline of 31 July 2017.
The territory of Delhi along with other states of West Bengal, Chhattisgarh, Andhra Pradesh and Telangana etc. has not yet started with RERA registrations, which has put all the builders and broker on hold. All the ongoing, as well as new projects require registration with RERA, which is not yet made possible in these major states.
The real estate developers have been left clueless regarding the status of the real estate Act as there is no official announcement from the Government of these states regarding the implementation of RERA. Also read:- Notification of RERA rules in Different states.
Builders and Brokers helpless
The provisions of RERA restrict builders from advertising or marketing their projects if not registered. Projects that are ongoing are not able to advertise as they have no Authority to register through. Builders planning to launch new projects have been left wondering as it is mandatory to register all the new launches after May 2017 with RERA.
Violating any such provisions could also lead to penalizing of the builder and cancellation of the registration in future.
Brokers are also required to register with RERA before continuing their operations in real estate as the Authorities have to overlook the working of all the real estate agents. Also, brokers are now only allowed to deal with projects registered with RERA. Unavailability of the RERA Authority in these places is having a huge impact on real estate developers as well the status of the real estate sector.
The lack of RERA has also made it difficult for homebuyers of these states to make use of the Real Estate Act. Homebuyers cannot complain against fraudulent activities of the builders and brokers without the presence of an Authority. Due to this, there have been only a minimal amount of investment in most of these states in real estate by consumers since May, earlier this year, when RERA was supposed to be implemented. Consumer Associations of the state are also furious over how inactive the State Governments has been for implementing the Act.
With the implementation of RERA, which is already done in more than 15 states of the Country, have observed a significant positive growth in the real estate sector. Homebuyers have also found a platform where they can directly report any kind of issue regarding their builders and agents. Without any idea on how and when the Act will be implemented in these states, still, the only solution to the problem is RERA.
The only way to help real estate developers and revive the interest of people in real estate will be to implement RERA throughout the country as soon as possible.
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