RERA- ESTABLISH REGULATORY AUTHORITY


Karnataka State Government notified the Real Estate Regulation Act (RERA), on 10-07-2017 and all under construction or on going projects and new projects have to be registered with the regulator from 01-08-2017, and failure to do so will attract a penalty of 10% of the project cost.
The housing and urban affairs ministry (MoHUA) has asked state governments to immediately establish real estate regulatory authority and assign the task of the appellate tribunal to any existing tribunal where such a system has not been put in place.

 

In a letter to all chief secretaries and lieutenant governors on Friday, MoHUA secretary Durga Shanker Mishra said the situation had become “grave“ because, in the absence of rules, regulatory authorities and appellate tribunals, transactions in the real estate sector would get adversely affected from July 31.

Two sets of builders have challenged the provision for mandatory registration of ongoing projects in two high courts.  The builders have pleaded that they should not be made to register their projects till the court passes a final order.On July 11, Nagpur bench of Bombay High Court had sent a notice to the Centre to respond. The government has maintained that the main reason for bringing the new law was a huge number of delayed projects.

 

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