While the Real Estate Regulation (and Development) Act, 2016 completes one year after all its sections became law on May 1, 2017, of the 28 states (the Act is not applicable in J&K) where the Act is to be enforced, only three so far have appointed a permanent regulator. Also, only 14 states have functional web portals, and just 20 have notified the rules. However, all the seven Union Territories have notified them.
Maharashtra, Madhya Pradesh and Punjab have appointed permanent regulators under the RERA. All other states where RERA is being implemented are functioning with interim designated regulators, a report by real estate consultancy firm Knight Frank said. Haryana, Assam, Kerala, Telangana and Orissa do not have web portals. Even in states such as Uttar Pradesh, Bihar, Rajasthan and Andhra Pradesh, among others, where web-based portals have been launched, the information uploaded by developers is so scanty that it is practically of no use, Knight Frank’s chief economist and national director (research) Samantak Das said.
West Bengal has not even notified the Act. The seven north-eastern states, too, have not notified the RERA because of certain constitutional obligations. The state RERA rules, wherever implemented, are not very clear about registration of ongoing projects launched before all sections of the RERA became law on May 1, 2017.
Maharashtra RERA is the most active in the country and the only exception where the regulator’s proactive functioning had set new precedents. Of more than 25,000 projects registered under RERA across India, 62% are in Maharashtra, the report said. Poor implementation of the RERA in various states has had an adverse effect on revival of the realty sector.
“States such as Maharashtra, which implemented the regulation in true letter and spirit, witnessed signs of uptick in residential sales and overall consumers’ sentiments,” Shishir Baijal, chairman and managing director of Knight Frank India, said.
Niranjan Hiranandani, president of real estate developers’ body NAREDCO, said it would take some more time for all states to comply with the norms and create the set-up for its impact, which will bring in consumers protection, transparency and fairness in the real estate sector.
“The first year is typically for working out problems that need to be tweaked or altered – and this is exactly what has happened over the past one year…We need to see how things work out in coming months before we can take a call on how to explain it, but at present, I would say the performance of the RERA has been encouraging. A lot of work is still to be done in a few states to get the existing and new project registered,” Hiranandani said.