21 November 2016

REAL ESTATE (REGULATION & DEVELOPMENT) ACT, 2016 – STATUS UPDATE

News

As a first step towards the implementation of the Real Estate (Regulation and Development) Act (RERA), 2016, the Central Government directed all the State Governments to notify rules for the functioning of real estate authorities at state level by 31 October 2016. Check out the below table to find out the latest status update about RERA implementation in various States.

RERA Status

State

Rules notified under RERA 2016 by 31 October 2016

  • Gujarat
  • Uttar Pradesh
  • Five Union Territories – Chandigarh, Lakshwadeep, Andaman and Nicobar Islands, Daman and Diu, Dadra and Nagar Haveli

Rules drafted and put in public domain for inputs

  • Maharashtra, Karnataka, Uttar Pradesh, Kerala

Expected to notify draft rules for suggestions soon

  • Andhra Pradesh, Telangana, Tamil Nadu, West Bengal, Delhi

Other states are yet to make any announcement about the status of the implementation plan of RERA. Despite repeated reminders from The Ministry of Housing and Urban Poverty Alleviation (HUPA) to state governments to expedite the process, most of the states are yet to comply with the rules.

Research view

While the process to get a regulatory framework for the real estate sector in the form of Real Estate (Regulation and Development) Act, 2016 itself was tedious, getting all the states to regularise the sector at the ground level is turning into a far more interminable task. States such as Gujarat and Uttar Pradesh that have recently notified the rules, are also facing opposition from consumer groups, as a few important clauses were relaxed in the state rules. In our opinion, due to uncertainty and indecision amongst the state level legislators and industry participants about the implementation of the draft rules, it should take at least 12-24 months before majority of the states fully come on board with the required infrastructure to support the functioning of the Real Estate Authority. 


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