TN Govt initiates action to draft RERA rules

CHENNAI: Builders may no longer be able to take home buyers for a ride as the state government has kick started the process to ratify real estate act which will have provisions to set up a regulatory authority and penalise promoters delaying housing projects.

The Tamil Nadu government is likely to constitute a sub-committee to formulate rules for notifying the ambitious act eight days after the centre unveiled draft rules for the Real Estate (Regulation and Development) Act 2016.

State governments must frame rules to ratify the central act within six months after the act came into force on of May 1. The legislation aims at protecting the interests of buyers, stringent action against promoters delaying housing projects, single window clearance and establishing Real Estate Regulatory Authority to redress the grievances of consumers.

A high level meeting of top officials representing various bodies attached to the state housing and urban development department was convened on Saturday. The meeting discussed threadbare the recent draft rules of the union ministry of housing and urban poverty alleviation, official sources said. “The discussion was around the draft rules and provisions like establishing Real Estate Regulatory Authority. A sub-committee is likely to be formed for framing rules of the act,” a senior housing official said.

Another official said, “We would be framing the rules by October 31”. However, the Tamil Nadu government has not yet decided about the quantum of penalty to be levied on defaulting promoters.

The draft rules released by the Centre on June 24 says developers must pay 11.2 per cent interest to buyers for delay in handing over apartments and homes. Any violation like increase in the size of apartments, change in layout and construction of additional towers in a project without taking consent from 70per cent of the allottees can lead to cancellation of registration. Though the Centre’s draft rules covers only five Union Territories without legislatures, states are at liberty to modify it or draw their own rules.

Senior officials including urban development secretary Dharmendra Pratap Yadav, representatives from the Tamil Nadu Housing Board and Chennai Metropolitan Development Authority (CMDA) participated in the meeting, sources added.

Meanwhile, CREDAI Chennai chapter chairman Suresh Krishn has sought the government to define the term “existing projects” and clear the air on date from which projects would come under the purview of the act.

Credits ET Realty

One thought on “TN Govt initiates action to draft RERA rules

  1. Sirs
    Framing rules for the RE aCT 2016 no 16 of 2o16 dated 25.03.2016 is essential to Tamil Nadu. This should be framed immediately. The Builders has not obliged the conditions framed by CMDA while issuing approval.
    1) STP has not worked as per the norms fixed by CMDA.
    2) BY THE NAME OF SERIVCE TAX the Builders collected huge amount from the customers. There is no proper maintenance of accounts by the Promotors.
    3) BY WAY OF corpus fund the builders collected very huge amount from the customers and they uilise that amount for their own use. There is no proper Audit.
    4) uTILISATION OF Common Area.
    5) No Intercom facility to the customers.
    6) Not cOMPLETED THE scope OF wORK even after handing over the Association.
    7) Basic Needs of Customers has not achieved.

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