States, except Gujarat, miss deadline to notify Real Estate Act to the pain of home-buyers
It seems nothing related to real estate development in India can ever stick to deadlines. The latest is the Real Estate (Regulation and Development) Act enacted by Parliament in May 2016 to protect interests of home-buyers. Since land is a state subject, even after the Centre enacts rules and regulations, state governments have to ratify it. While state governments had time until October 31 to notify rules under the Act, only Gujarat has done this.
The ministry of housing and urban poverty alleviation (HUPA) has completed formalities for the Union territories of Andaman and Nicobar Islands, Chandigarh, Dadra & Nagar Haveli, Daman & Diu, and Lakshadweep. However, the urban development ministry which had to notify the rules for Delhi failed to meet the target.
The problem is this deadline is linked to other deadlines for setting up real estate regulatory authorities and appellate tribunals. Delay in one could lead to delays down the line. According to The Economic Times, Maharashtra, Andhra Pradesh, Tamil Nadu and Karnataka have finalised the rules, but have not notified them.
The big benefit from the Act is that real estate developers will have to deposit 70% of the funds in a separate bank account to ensure project completion. Real estate developers are the immediate beneficiaries of the delays as they need not register projects under the new law if they complete it before the real estate regulator is established. It is time the Centre got states to stick to deadlines. After all, it is for the benefit of the common man.