States told to set up realty regulators soon
MoHUA secretary said the situation has turned "grave" because in the absence of rules, transactions in the real estate sector would suffer from July 31.
In a letter to all chief secretaries and lieutenant governors on Friday, MoHUA secretary Durga Shanker Mishra said the situation has turned "grave" because in the absence of rules, regulatory bodies or appellate tribunals, transactions in the real estate sector would suffer from July 31.
As per the Real Estate Regulation Act (RERA), all existing and new projects have to be registered with the regulator by July 31. Failure to do so will attract penalty of 10% of the project cost. Two sets of builders have challenged the provision for mandatory registration of ongoing projects in two high courts.
FLASHPOINTS ON RERA
The builders have pleaded that they should not be made to register their projects till the court passes a final order. On July 11, the Nagpur bench of Bombay HC had sent a notice to the Centre to respond. The government has maintained that the main reason for bringing the new law was the huge number of delayed projects.
Mishra said in the absence of appellate tribunals, adjudication of disputes would get delayed. Though several states had notified rules, very few had set up permanent regulatory authorities and appellate tribunals.