State-level Real Estate Regulatory Authorities (RERAs) will be established to regulate transactions related to both residential and commercial projects and ensure their timely completion and handover. The bill covers any project that is more than 500 sq m or has more than eight apartments (states can lower this requirement further). It provides for imprisonment of up to three years for promoters and up to one year for real estate agents and buyers and/or monetary penalties if they violate orders of appellate tribunals.
Under the real estate bill passed by the Rajya Sabha on Thursday, no pre-launching of projects will be allowed without getting all approvals from the local development or municipal authority and without obtaining registration from the regulator. All incomplete projects are to come under the regulation. The rules that will be made subsequently will make provisions for taking care of already completed projects.
Appellate tribunals will have to adjudicate cases in 60 days as against the earlier provision of 90 days, and regulatory authorities will have to dispose of complaints in 60 days while no timeframe was indicated in the earlier bill, Naidu said. In addition, developers will have to provide brief details of projects launched in the past five years, both completed or under-construction, and the current status of the projects. These may be made available on the regulator’s website so buyers can take an informed decision.
Credits ET Realty