Economy

Real Estate Act: Govt to notify rules for five Union Territories this week

| | Updated on: Oct 17, 2016

Law to put in place effective regulatory mechanism, enhance credibility of industry

The rules meant for five Union Territories to implement the Real Estate Act are likely to be notified sometime this week.

“The Ministry of Housing and Urban Poverty Alleviation (HUPA) will bring out rules applicable to five UTs without legislature —Andaman & Nicobar Islands, Chandigarh, Dadra and Nagar Haveli, Daman & Diu and Lakshadweep — this week,” an official in the know of the development said.

For National Capital Region of Delhi, the Ministry of Urban Development is responsible for notifying rules. The Ministry of Urban Development also could consider adoption of the rules framed by the Ministry of HUPA.

In June, the HUPA Ministry had invited suggestions and objections from the public for the draft rules for the five UTs hosted on the Ministry’s Web site. It had also held discussions with home buyer groups. These draft rules were later sent to the Ministry of Law and Justice for vetting.

All 29 States and Puducherry have to draft their own rules. “We have written 2-3 letters to States as the deadline to notify these rules is October 31. We believe the States are waiting to look at the rules that will be put out by HUPA Ministry for the five UTs,” a source told BusinessLine .

Commencement of the Act According to a government notification announcing the commencement of the Real Estate Act on May 1, 2016, rules under the Act have to be formulated by the Central and State Governments within a maximum period of six months, that is, by October 31, 2016 under Section 84 of the Act.

Real Estate Regulatory Authorities and Real Estate Appellate Tribunals have to be set up by April 30, 2017, and the entire Act is to come into effect the day after. These fast track Tribunals shall decide on the disputes over the orders of Regulatory Authorities in 60 days.

The Rajya Sabha had passed the Real Estate Bill on March 10, 2016 and the Lok Sabha passed on March 15, 2016 after which President Pranab Mukherjee accorded his assent to the Bill on March 25, 2016.

The Act seeks to put in place an effective regulatory mechanism for the sector, enhance the credibility of construction industry by promoting transparency, accountability and efficiency in execution of projects.

Commercial real estate is also under the ambit of the regulation and projects under construction are also required to be registered with the Regulatory Authority.

Published on January 16, 2018

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