Hyderabad: Telangana state government has failed to notify Real Estate Regulation and Development Act, 2016 (RERA) rules within April 30 deadline as mandated by the Centre’s RERA Act leaving the fate of real estate projects in limbo. The government initiated the processof drafting the rules three days back. Officials said it will take at least 15 days to notify the same. However, officials said this will have no impact on real estate projects in the state as the Act provides builders to register under RERA by July-end. The government will fulfill all the RERA provisions by then, they say.
“We have recently constituted a committee comprising senior officials from GHMC, HMDA, MAUD etc to draft the RERA rules. The committee is on the job. It may take another 15 days to draft the rules and submit to the government for approval,” said Navin Mittal, secretary, Municipal administration and urban development. Mr Mittal said due to delay in notifying RERA rules there will not be any immediate impact on either existing or new realty ventures in state. “The RERA Act has a provision for builders of existing and new projects to register under the Act within three months, that is, till July-end. With this, builders can take up works without any hurdles. We will complete all the legal formalities required to be fulfilled under RERA by then,” Mr Mittal said.
Mr Mittal added that the RERA Act made by the Centre for Union Territories is being studied by the committee, based on which it will draft rules for Telangana. However, builders said lack of clarity on RERA rules would affect the realty sector as builders would hesitate to take up works. “There is utter confusion on RERA rules notified by various states. While some states gave exemption to ongoing projects, some did not. There is no clear definition over what comprises a completed or an ongoing project or a new one. Without clarity on this, the builders would not take up projects or sell properties fearing it may result in legal wrangle in future,” said C. Shekar Reddy, builder and past national president, CREDAI.
Mr Reddy said the neighbouring AP had recently notified RERA rules which gave some exemptions to ongoing projects due to which there is clarity for builders to take up construction activities there. Incidentally, Telangana remained mum on notifying RERA rules till the last minute. Despite the Centre sending repeated reminders to state government since October last year and union urban development minister M.Venkaiah Naidu writing to chief ministers of all states in February urging them to ensure RERA rules are ready by April 30, the government did not initaite the process. The matter was set into motion only three days back when MAUD minister K.T. Rama Rao reviewed the RERA issue with officials. A committee was appointed for the purpose which sought 15 days time to study the RERA rules of other states and UTs and draft the rules for TS.
