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As the deadline looms, for states to set up their respective Real Estate Regulatory Authorities and the machinery, and for developers to register their newly-launched or ongoing projects, both sections of stakeholders are making quick arrangements. In one of the latest developments in the National Capital Region (NCR), the Haryana cabinet, on July 25, 2017, approved the final rules under the Real Estate (Regulation and Development) Act (RERA) for the state. Neighbouring Uttar Pradesh also launched its own RERA website on July 26, 2017.
“Although the implementation of Haryana’s RERA has been long overdue, we welcome the move,” said Jaxay Shah, president of CREDAI, noting that Haryana had now become the 23rd state in the country to notify the rules. Faster implementation of the RERA, can act as a catalyst for the growth of the real estate market, he added.
Delays affect RERA implementation in the NCR
While the RERA came into effect on May 1, 2017, development firms have been given time till July 31, 2017, to register their ongoing projects with the real estate regulatory authority in their respective states. State governments were asked to establish their regulatory authorities by April 30, 2017.
Till date, 23 states including the NCR states have notified the RERA rules. However, a number of states have not been able to install the required machinery or a permanent regulator. All these developments have begun to impact market sentiments. Says Anupam Varshney, head – sales and marketing, Vatika Limited: “Since last year, market sentiments were down, due to a number of factors including the slump. RERA offers more transparency to buyers. Buyers would now want to transact with firms that are RERA-compliant and make full disclosures. Hence, any further delay in installing the RERA machinery, will aggravate the problems of the industry and trouble the buyers.”
Most development firms in the states that have notified the rues, are currently submitting their documents manually, to the respective regulators or the interim authorities that have been put in place. For instance, more than 20 developers have manually registered with the regulator in Haryana alone.
Current status of the RERA in the NCR
|State||Important date||Regulator in place||Appellate tribunal||Online mechanism and website|
|Delhi||Nov 23, 2016||Rules notified. The vice-chairman of the Delhi Development Authority (DDA) has been designated as the regulatory authority for the National Capital Territory of Delhi, under the RERA.||No information available||No information available|
|Rajasthan||June 1, 2017||Rules notified. The state government, in its order dated February 17, 2017, has designated the additional chief secretary of the Urban Development and Housing Department as the interim regulatory authority, until the Rajasthan Real Estate Regulatory Authority is set up.||The state government, in a notification dated May 15, 2017, has designated the Food Safety Appellate Tribunal as the interim appellate tribunal, until the establishment of the Real Estate Appellate Tribunal under the Act.||Launched on June 1, 2017|
|Haryana||July 25, 2017||Rules notified. The state’s cabinet has approved the final Haryana Real Estate (Regulation and Development) Rules 2017.||No information available||Not yet launched|
|Uttar Pradesh||June 9, 2017||Rules notified. The state government has designated the principal secretary of the Housing and Urban Planning Department of UP, as the interim regulator, till the formation of the real estate regulatory authority.||No information available||Launched on July 26, 2017|
Source: Secondary research by Content Consultants. The table is indicative of the preparedness of the states
RERA in the NCR: Challenges that lie ahead
Welcoming the launch of Uttar Pradesh’s RERA portal, RK Arora, chairman of Supertech maintained that it will be instrumental, in bringing transparency and accountability to real estate projects undertaken in Uttar Pradesh. “This will revive the customer’s confidence and in turn, drive the demand for real estate projects in UP. Now, developers need to support the initiative, by complying with the rules and registering their projects on the website. We are hopeful that we will soon get the registration numbers for our projects and will be able to undertake marketing initiatives for the projects, as per new RERA rules,” he added.
Rohit Raj Modi, director of Ashiana Homes, points out that “While it is important to adhere to the RERA rules, setting up of the necessary infrastructure, is also a must.” Developers, on their part, are hopeful that the NCR states will bring in the necessary mechanism to register, at the earliest.
“The Haryana government and other states, are working hard, to implement the rules. Hopefully, by August 2017, the state government will have its website. This would drastically cut the time and manual labour involved, in travelling to the authority office and preparation of the documents,” says Varshney.
While these may not have a direct impact on the sales, experts maintain that it will improve the confidence of prospective buyers, who are still waiting to see more transparency in the sector.