Home buyers urge Gujarat & UP govts to withdraw builder-friendly realty rules

NEW DELHI: Home buyers association ‘Fight for RERA’ has appealed to both Uttar Pradesh and Gujarat governments to withdraw the notified builder-friendly real estate regulatory Act (RERA) rules and come out with fresh notification on the lines of the ministry of housing and urban poverty alleviation (HUPA).

“The Rules notified by both Gujarat and Uttar Pradesh governments are ultra vires to the Real Estate (Regulations and development) Act 2016. It is also against the spirit of the said Act,” said Abhay Upadhyay, national convenor, Fight For RERA. UP has defined “ongoing project” in the notified RERA rules and come up with four exemptions to ensure that maximum ongoing projects get out of the ambit of RERA. It has also diluted compounding clause by making money payable proportionate to jail term.

Gujarat has exempted all projects launched before notification of the rules on November 1. Beside, its rules are partial and has not covered many aspects including requirement for registering projects. The HUPA notified rules, however, mandates registration of all ongoing projects that have not received completion certificate with the real estate regulator.

“These development points fingers towards back room manipulations by builders lobby to derail the process of bringing complete reforms by eliminating unaccountability in the real estate sector,” Upadhyay said. The ministry of HUPA on October 31 notified the final rules to implement the Real Estate (Regulation and Development) Act, 2016 (RERA) applicable for five Union territories of Andaman and Nicobar Islands, Chandigarh, Dadra and Nagar Haveli, Daman and Diu and Lakshadweep.

Gujarat and UP were the first to notify RERA rules for their respective states.

“The interpretation of rules should not go beyond the original purpose of the Act. Ongoing projects includes all the incomplete projects,” said a top HUPA official. The ministry has also written to the chief secretaries of all the states asking about the update on the notification of RERA rules. Fight for RERA has also appealed to the urban development ministry, which is responsible for framing and notifying RERA rules for Delhi, to refrain from cahooting with builders and be fair in their dealing with all stakeholders in an unbiased manner.

The ministry of urban development recently called a meeting of builders and their associations to discuss the real estate rules for Delhi and asked them to submit their suggestions. Upadhyay feels not calling consumers representative for the meeting is setting a bad precedent and points towards unholy collusion.

Credits ET Realty

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