Hyderabad: Real Estate Regulation Act that was passed by Parliament and approved by 13 states so far will come into effect from May 1 creating a win-win situation for buyers of property that will ultimately ensure the buyer will be king, asserts Union Minister for Urban Development and Housing M. Venkaiah Naidu. He asked other states that have not notify the Act so far to do it to create confidence among both buyers and sellers under a new regulation. “The landmark legislation has become a reality nine years after regulation of real estate sector was first mooted in 2009 by then UPA government. It, however, took five years to introduce the Bill in 2013,” Venkaiah said.
He said real estate sector which is the second largest employer contributing 9 per cent of GDP will significantly benefit from this regulation. “It is more than just the regulation of the sector.” He said the new Act envisages that developers shall refund payments to buyers within 45 days of becoming due. It is a win-win situation for both buyers and developers. Rights and obligations of the buyers, developers and real estate agents are clearly defined in the Act and any aggrieved party can seek redressal for violation of the terms of agreement by the other party.
Giving details of the notification of the Act, the minister said all ongoing projects that have not received completion certificate as well as new projects shall be registered by developers within three months i.e by July end. This mandatory registration of projects with Real Estate Authorities enables grievance redressal if the builder fails to deliver what was promised when the project was launched. As many as 13 states and UTs including Andhra Pradesh, Bihar, Gujarat, Madhya Pradesh, Maharashtra, Odisha, Uttar Pradesh, Andaman and Nicobar Islands, Chandigarh, Dadra and Nagar Haveli, Daman and Diu, Delhi and Lakshadweep have notified the rules as required under the Act. He appealed to other States to notify it in official Gazette.
