Real Estate Act to come into force from May 1
The Real Estate (Regulation and Development) Act, 2016 will come into force on Sunday, May 1 starting the process of making operational rules as well as putting in place institutional infrastructure to protect the interests of consumers and promote the growth of the Real Estate sector in India.
Earlier this week, the ministry of housing & urban poverty alleviation (HUPA) notified 69 of the total 92 sections of the act which would the act into force from May 1.
According to the notification commencing the act, rules under the act have to be formulated by the central and state governments within a maximum period of six months—by October 31,2016—under Section 84 of the act.
The ministry of HUPA would make rules for union territories without legislatures while the ministry of urban development would do so for Delhi.
Section 84 of the Act stipulates that “The appropriate government shall, within a period of six months of the commencement of this Act, by notification, make rules for carrying out the provisions of this Act.”
The key to providing succor to home buyers is the early setting up of Real Estate Regulatory Authorities where all real estate projects have to be registered and Appellate Tribunals for adjudication of disputes.
Section 20 of the Act says “The appropriate Government shall, within a period of one year from the date of coming into force of this Act, by notification establish an authority to be known as the Real Estate Regulatory Authority to exercise the powers conferred on it and to perform the functions assigned to it under this Act”.
Regulatory Authorities, upon their constitution, will get three months time to formulate regulations concerning their day to day functioning under Section 85 of the act.
Likewise, under Section 43 of the act, Real Estate Appellate Tribunals shall be formed within a maximum period of one year—by April 30, 2017. These fast track Tribunals are to be set up to decide on the disputes over the orders of Regulatory Authorities in 60 days time.
A committee chaired by secretary, HUPA has already commenced work on formulation of model rules under the act for the benefit of states and UTs so that they could come out with rules in quick time besides ensuring uniformity across the country
The ministry will also will come out with model regulations for Regulatory Authorities to save on time.
The remaining 22 sections of the act that are to be notified relate to functions and duties of promoters, rights and duties of allottees, prior registration of real estate with Real Estate Regulatory Authorities, recovery of interest on penalties, enforcement of orders, offences, penalties and adjudication, taking cognizance of offences etc.