Centre warns states against diluting RERA
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by Axiom Landbase
- May 22, 2017
- Market Updates
- 0
The Centre has warned states against introducing rules and regulations in violation of the provisions of the Real Estate (Regulation and Development) Act (RERA), saying dilution may trigger a legal challenge.
“It is a settled law that subordinate legislation such as rules, regulations, schemes, etc, cannot be in violation of the provisions of the principal Act, and any such provision inserted in the rules will be open to legal challenge and liable to be struck down by the courts,“ Union minister of state for housing Rao Inderjit Singh said in a letter to Haryana chief minister Manohar Lal Khattar.
Haryana has diluted norms in its draft rules for RERA, keeping most incomplete projects out of the law’s ambit. Rao is the MP from Gurgaon.
“This has been the stand of the housing ministry and we have appealed to every state to frame their rules in sync with the Act, and they can follow the rules that the ministry has notified for UTs without legislatures,“ said a ministry official.
Lakhs of home buyers have opposed attempts by state governments to dilute RERA, particularly to exempt incomplete projects.
While Gujarat has kept all housing projects launched before November 2016 out of RERA’s ambit, Haryana, Madhya Pradesh, Rajasthan, Maharashtra, Tamil Nadu, Karnataka, Uttar Pradesh and Andhra Pradesh have incorporated provisions to give complete relief to incomplete projects. Sources said UP and Karnataka was going to amend their rules to bring all incomplete projects under the regulation.
Rao also suggested that since the Act clearly defined terms such as carpet area, flats, ongoing project, and disclosures to be submitted by builders, and specified a penalty for offenses by builders, states should stay away from defining them further to avoid confusion, interpretational difficulties, and litigation.
