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In a bid to revive confidence in the real-estate sector the government will implement the Real Estate (Regulation & Development) Act, 2016 (RERA) in full from Monday.
“Developers shall get all the ongoing projects, which have not received completion certificate, and the new projects registered with regulatory authorities by July end.
“This enables the buyers to enforce their rights and seek redress of grievances,” an official statement said.
The new regulation will apply to over 76,000 companies across the county. Minister of Housing and Urban Poverty Alleviation M Venkaiah Naidu, in a series of tweets, said, “The Act ushers in the much desired accountability, transparency and efficiency in the sector, with the Act defining the rights and obligations of both the buyers and developers.”
In addition to mandatory registration of projects and real estate agents, the Act mandates depositing 70 per cent of the funds collected from buyers in a separate bank account in case of new projects and 70 per cent of unused funds in case of ongoing projects.
Further, projects with a plot size of at least 500 square metres, or eight apartments should be registered with regulatory authorities.
In addition to this, both developers and buyers will pay the same penal interest of SBI’s MCLR (marginal cost of lending rate) plus 2 per cent in case of delays. Developers will be liable for structural defects for five years.
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