Wednesday 24 May 2017

RERA Enforcement: Investors Who Bought Property in India May Find Help from Center

In what is good news for homebuyers who invested in a yet to completed best property in India. The Center has warned states against diluting the Real Estate Regulatory Act or RERA. Among the warning to states by the centre include the introduction of rules and regulations by states legislatures which violate the RERA’s provisions. According to the Centre, dilution of the RERA by states may lead to a legal challenge.

Words from the Housing Ministry

The Union Minister of State for Housing has stated in a letter that rules, regulations and schemes enacted by Indian states cannot be in violation of the main provisions of the RERA because the RERA is settled law that cannot be altered by the subordinate legislation of Indian states. The Union Minister in a letter to the Chief Minister of Haryana wrote that any provision inserted into the rules of the RERA constitutes an open legal challenge which is liable to be struck down by Indian courts.


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Most incomplete projects in Haryana have been kept outside the scope of the RERA because the state of Haryana has diluted the norms which were a part of the draft rules for the RERA.

A ministry official went on to say that the housing ministry has appealed to each state not to dilute the RERA but to frame their rules in synchronicity with the Real Estate Regulatory Act. Ministry officials have provided Union Territories as exemplars of an undiluted RERA which has been notified in UT without any legislation. Indian states are encouraged to follow the RERA in the form in which it exists with Union Territories.

What Home Buyers Have Said

Across India, hundreds of thousands of homebuyers who have invested in projects that are yet to be completed have been against any dilution of the RERA. Such homebuyers have openly opposed any attempt by state governments to dilute the RERA and in particular the attempts by states to exempt yet to be completed projects from the RERA.

A recent example of action by homebuyers who were against the dilution of RERA is that of UP homeowners petitioning the Chief Minister of Uttar Pradesh because they were deeply concerned about the dilution of the RERA by the UP state legislature. Many such investors had bought yet to be completed real estate in India at Noida. In this instance, the UP Chief Minister had assured Noida Authorities that the RERA would not be diluted by his government.
     
RERA across the States Today

The state of Gujarat has kept all projects launched in the state before November of last year out of the grasp of the RERA. According to some of the best property websites in India, states including UP, Andhra Pradesh, Haryana, Madhya Pradesh, Maharashtra, Tamil Nadu, Rajasthan, and Karnataka have worked against the interest of buyers by excluding most incomplete projects from being completed as stipulated under the provisions of the RERA.

Conclusion

The RERA’s function if enforced by the Judiciary could lead to the implementation of the undiluted RERA at the state level in India.   



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