The Haryana government, which is yet to finalise the rules for the Real Estate (Regulation and Development) Act, 2016 (RERA), has nevertheless started registering projects under the draft rules. “Projects are being registered under the draft rules, if any changes are made in the final rules then the projects will have to comply with those as well,” a senior state government official said. The final rules will be notified in a week or so, he added. Among the eight projects registered as of Tuesday — mostly new launches in Gurgaon and one in Karnal — are four of Signature Global Housing Projects and one each of M3M and Raheja Developers. These apart, half a dozen more applications have been received by the interim regulator.
“The absence of the final rules does not hamper registration of projects with the regulator. Till the time an electronic filing system through a website is ready, developers can apply with physical papers of a project,” the official said. According to state government officials, Haryana has decided to allow developers more compliance time than envisaged under RERA. “The state will allow developers to sell ongoing projects during the first three months in which they ought to have registered the project. “A big chunk of projects are going to be completed in a month or two,” another state government official said.
Minister of state for urban development, housing and urban poverty alleviation Rao Inderjit Singh had written to Haryana chief minister Manohar Lal Khattar, asking the state government to make the rules stricter for developers. Sources said the department has received over 1,800 objections to the draft rules notified on April 29. Most objections relate to the exclusion of ongoing projects — those that have applied for an occupancy certificate or part completion certificate, or projects which have received the completion or part completion certificate in case of a plotted colony.
Singh had also said the changed rules would deprive home buyers of ongoing projects, the benefit of the special legislation passed by Parliament to protect consumers. “It is a settled law that subordinate legislation, such as rules, regulations and schemes, cannot be in violation of the principal Act and any such provision in the rules will be liable to be struck down by courts,” Singh had said in his letter.
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The Real Estate (Regulation and Development) Act, 2016 was notified by the ministry of housing, urban development and poverty alleviation on May 1 last year. Under RERA, each state and UT will have its own regulatory authority (RA), which will frame regulations and rules according to the Act. But not all states have a real estate authority in place yet and some with one have diluted the original provisions as per the central Act.
RERA covers both new project launches and on-going projects where the completion/occupation certificate has not been received. So far, 16 states and Union territories have not notified rules. Maharashtra, Madhya Pradesh and Kerala are the only states to have developed websites to enable developers to register online.