Is India Ready To Implement The Real Estate Law?  

The Central government has upped its efforts to implement the rules of the Real Estate (Regulation and Development) Act, 2016, which was passed by both Houses of Parliament in March this year. While 69 of the 92 Sections of the Act were notified in May, the remaining sections have to be notified by October 31 this year.

While the notified rules will be applicable to the Union Territories (UTs) of Andaman & Nicobar Islands, Chandigarh, Dadra and Nagar Haveli, Daman & Diu and Lakshadweep, the Urban Development Ministry will come up with the rules for the National Capital Region. On the other hand, other states and UTs will formulate their own set of rules. This may take some time.

Also Read: What Does RERA Say About Timely Delivery Of Projects?

According to the Act, every real estate project will have to register itself with a state-level Real Estate Regulatory Authority (RERA) , which has to be set up by April 30, 2017. The Act will then come into effect on May 1, 2017.

On the other hand, apprehensions are lingering right on the surface amidst celebration around the legislation. Largely expected to prove nothing less than a magic wand for the ailing real estate sector, the Act does have its critics as well.

"While the (government) intention is laudable, and RERA (Real Estate Regulatory Authority) , will indeed be a game-changer, there are some serious anomalies in the actual provisions of the new legislation which, in my view, pose certain grave concerns for developers and other risk-taking players in the real estate business,"

DLF chief Kushal Pal Singh has said earlier. Singh is certainly not alone expressing doubts about the law, developers across the country share his opinion.

The government, too, is aware of the many apprehensions developers might have about the “game-changer” Act.

“The Real Estate Bill has already been approved and we have finalised the rules, too. Now, we will communicate to the states shortly and the states have to appoint regulators within a period of six months... it will be a reality now … This is a regulation and not a strangulation. We want the private sector to join in a big way to take on the challenge of housing shortage in the country,” The Economic Times quoted Urban Development Minister M Venkaiah Naidu as saying.

As a matter of fact, real estate developers, who happen to be the key sector stakeholder, must be taken on board and their concerns must be addressed for the successful implementation of the Act. Apart from bringing in transparency and making it all fair in the property market, the legislation is expected to improve the overall health of the sector.  

Also Read: How The Real Estate Bill Will Transform The Sector