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States which diluted RERA provisions will need to mend rules following HC ruling

NEW DELHI: State governments, which redefined “ongoing projects” to keep most real estate projects out of the ambit of Real Estate Regulation Act (RERA) and diluted the law, will have to mend their rules.

The Bombay high court has upheld the constitutional validity of RERA and made it applicable to all unfinished projects where Completion Certificate has not been issued. According to the law notified by the Centre any project that has not got completion certificate by May 1, 2017 will be treated as ongoing project and all such projects need to get registered with the regulator. The developers will have to submit fresh time-lines for completion.

The HC has also made it clear that the regulator will have the right to register or not to register a project, if the fresh time-line to complete the unfinished project is unreasonable. The order said regulator can also issue necessary directions to the promoter in such cases taking into consideration the facts of each case.

Among states that gave exemptions to projects under the “ongoing”category were Telangana which excluded all projects for which building permissions were approved prior to January 1 this year by local authorities. Uttar Pradesh government has excluded projects if it meets one of four conditions – services have been handed over to local authority, common areas have been handed over to RWA, 60% of sale/lease deed executed and application filed for completion certificate.

Similarly, in Karnataka, all projects that are 60% complete have been kept out of RERA and in Andhra Pradesh, 50% sale deeds or laying of all slabs in the project is enough to exclude a project from registration. In Maharashtra, the rules say if any building in a project is completed, then it won’t need to be registered.

Sources said the Bombay HC ruling will compel the states to take corrective measures. Several appeals by urban affairs ministry to states including to BJP-ruled ones had gone unheeded when the Centre had asked them not to dilute the norms. The Centre had fought in favour of bringing all ongoing projects under RERA in the Bombay HC during hearings.

“Now our members can challenge the rules notified by states since these violate the central law. The Bombay HC order will be of great help,” said Abhay Upadhyaya of Fight for RERA, an umbrella body of flat buyers.

Source : timesofindia

This post first appeared on Daily Kiran, please read the originial post: here

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States which diluted RERA provisions will need to mend rules following HC ruling


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