The Centre on Monday notified the Real Estate (Regulation and Development) (General) Rules, 2016, to be applicable to the five Union Territories of Andaman & Nicobar Islands, Dadra & Nagar Haveli, Daman & Diu, lakshadweep and Chandigarh.
These Rules were required to be notified on October 31, as stipulated in the Real Estate (Regulation & Development) Act, 2016 that was partly brought into effect on May 1st this year.
As per provisions of the Act, Real Estate Regulatory Authorities (RERA) and Real Estate Appellate Tribunals have to be set up by the end of April, 2017 and the entire Act is to come into effect the day after.
The Act, which is a major reform measure to regulate the vast real estate sector, requires registration of all projects with state level Real Estate Regulatory Authorities to ensure protection of the interests of both buyers and builders.
“Some changes have been made in the Draft Rules placed in public domain three months back, by incorporating some suggestions received from consumer associations and real estate bodies,” said an official from Ministry of Housing & Urban Poverty Alleviation.
“To incentivize registration of projects and Real Estate Agents with Regulatory Authorities, fee has been reduced by half based on suggestions from promoters for reduction of fee. A cap has been placed on the total amount of registration fee as suggested by the real estate bodies,” said the official.
The Rules provide for compounding of punishment with imprisonment for violation of the orders of Real Estate Appellate Tribunal against payment of 10% of project cost in case of developers and 10% of the cost of property purchased in case of allottees and agents. Compliance with reasons for punishment shall be complied within 30 days of compounding.
With notification of the Rules by the Ministry of HUPA, States are also expected to do so soon, the official added.