Certain sections of RERA not notified by Centre

MUMBAI: Citizens will have to wait for at least a year to realise the benefits of the Real Estate Regulatory Authority (RERA) Act.

The Act came into force on May 1, but only with some sections, as the others have yet to be gazetted. As per the gazette notification, sections 2, 20-39, sections 41-58, sections 71-78 and sections 81-92 of the Act have come into force. Developers and builders in the state need not register with the housing regulatory authority, as section 4 of the Act has not been notified by the central government.

Advocate Nirav Jani said this has not been notified as state governments have been given a year under the Act to establish the authority.

Other significant sections that have not been notified are 19, which pertains to rights and duties of flat purchasers which allows the purchaser to obtain information about a project from the promoter/developer. Similarly, section 17, which deals with transfer of title by the promoter, and section 11, which deals with functions and duties of the promoter, have not been notified.

“Provisions of the Maharashtra Ownership of Flats Act (MOFA) will apply as far as registration and conveyance of societies are concerned. In case of inconsistencies, the RERA Act will prevail over the MOFA Act for gazetted provisions,” said Jani. Flat registration agreements too will be under the MOFA.

Sources said in case of inconsistencies between the central and state Acts, there is no authority to adjudicate, and all of them will end up in court for interpretation.

Rules for implementation of the Act are also to be framed. Housing department officials said the state can frame rules but there is no clarity on whether the Centre will frame model rules which states will have to adopt. “Once there is clarity on the issue we can go ahead with framing rules,” said state housing department officials.

As for establishing the housing regulatory authority, the official said sites have been identified for an office but the government will have to decide on the committee members.

In case the state fails to set up the authority within a year, the RERA Act is silent on what action will be taken against the state government for the delay.

Credits ET Realty

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