across the country are in a quandary as the Centre has stopped them from marketing ongoing projects yet to be registered with their respective state's
real estate regulatory authority
(Rera), and most state governments are neither ready with rules under the new Act, nor have they created the authorities.
In a written clarification to the National Real Estate Development Council (NAREDCO), the Union housing and urban poverty alleviation ministry (HUPA) said, "Section 3(1) of Rera prohibits advertisement for all projects (ongoing/future) without registration with the real estate regulatory authority."
Out of 35 states and Union territories, 24 are yet to set up regulatory authorities as mandated by the law, while 16 have not even notified the rules. According to Rera provisions, all projects need be registered online, but 32 states and UTs are yet to develop a website.
Except a few states like Maharashtra, MP, Gujarat and Rajasthan, most are not even ready to register projects manually. UP had notified Rera rules in December 2016, but the new BJP-led dispensation, which assumed office in March 2017, has expressed its intention to change the rules before starting registration. So far nothing has happened.
The chairman of the Confederation of Real Estate Developers' Associations of India (Credai), Getamber Anand, said stopping marketing activities at a time when the sector is passing through a lean patch would aggravate the condition. "This is certainly not ease of doing business," he said.
Anand said Credai was seeking legal opinion on the issue and may move court to challenge the "diktat". Asserting that the Real Estate Regulatory Act did not prohibit marketing of ongoing projects, he said the proviso of Section 3(1) clearly stated that ongoing projects would be given time till July 31 to register. As the state governments were not ready with the infrastructure to implement the Act when it kicked in on May 1, the Centre had said that the three-month period till July 31 would be sufficient to develop it.
NAREDCO chairman Rajeev Talwar, said that the government should not have disrupted business activities. Instead of this, they could have asked developers to continue with business and get their projects registered as soon as the requisite infrastructure was in place.
Navin Raheja, CMD of Raheja Developers, who rushed to Chandigarh with all the papers to register offline, said: "We are ready with all the documents and bank accounts to register, but it seems the states are still not fully ready."
Supertech CMD R K Arora added: "We are ready with all the approvals and bank accounts... but business should not get disrupted... At a time when GST is getting implemented, such a norm should not have been announced. Developers are being penalised for no fault of theirs."
Developers from UP feel that the government must provide a window to ensure business does not suffer. Credai's president for western UP, Deepak Kapoor, said that instead of asking states to expedite project registration, the Centre was restricting the business activities of developers.
News Source- TOI
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