Hyderabad: The Real Estate (Regulation & Development) Act (RERA), 2016 is unlikely to be enforced in Telangana before August. Though the Act came into force in the rest of the country on May 1, as per Centre’s directions, the TS government is yet to notify the draft rules.
Draft rules need to be approved by the Cabinet before they are notified. After notification, the government must call for objections and suggestions, and it must give the concerned stakeholders at least two weeks to respond. The final rules may then be prepared and notified by the government.
Once this process has been completed, a regulatory authority must be constituted under the RERA Act.
All builders and real estate agents will have to be registered with the authority, and they will have to obtain approval from it before launching any real estate projects.
K.T. Rama Rao, the Minister for Municipal Administration and Urban Development, constituted a committee in April, to draft the rules. The committee took a month to prepare the draft and submitted it to the Minister last week. Once approved by the Minister, the draft may be referred to the CM for the cabinet’s approval.
Official sources say, “Though the Centre's Act came into force on May 1, builders and real estate agents have been given three months’ time to get themselves registered under the Act. The government needs to complete all procedural requirements by July 31. Unless the regulatory mechanism is in place by August 1, it will not be possible for builders to launch any new projects.” This means that the government has two months to ensure that the RERA mechanism is in place. Officials are confident that they will be able to meet this deadline.
RERA is aimed at protecting the interests of buyers by bringing about increased transparency and accountability in property transactions.
