Only In Nine States have Notified their Respective RERA So Far, Says CRISIL

According to the result report by CRISIL only nine states have notified their respective RERA rules so far. The Real Estate (Regulation & Development) Act, 2016 (RERA) came into force from May 1, and the states were asked to notify their rules and development in tandem with the Act to ensure their timely implementation.

As per section 85 of the Act, Regulations are required to be notified by the ‘Regulatory Authority’ within 3 months of its establishment. But as of now, only Bihar, Maharashtra, Gujarat, Andhra Pradesh, Madhya Pradesh,  Odisha, Uttar Pradesh and Rajasthan have managed to do so. Some of the Union Territories which have complied are Chandigarh,  Andaman and Nicobar Islands, Daman and Diu, Dadra and Nagar Haveli, Lakshadweep and Delhi NCR, the research firm said.

For instance, seven out of the nine states have weakened the non compliance clause of the Act, which initially given to detainment for up to three years, a punishment of 10 percent on the assessed cost or both. “Many states have removed the imprisonment bit from the clause and only mention monetary penalties,” Binaifer Jehani, executive of CRISIL(Credit Rating Information Services of India Limited) Research.

In any case, this weakening is better from not having any standards set up, Jehani included. "The way the business is at this moment, these principles will likewise go far," she said talking in regards to the partial implementation by the nine states. 

With respect to across the country usage of RERA, "it is just a short time" Jehani said. As a few players begin submitting to the directions, homebuyers will expect the same out of the rest, she clarified. "The sloppy players will consequently fall set up," she said.

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