States Must Not Dilute Real Estate Regulation Rules, House Panel

Unhappy with most of the states delaying implementation of the real estate regulation law, also known as RERA, and some of them already diluting the Central Act, a parliamentary panel has asked the states to complete the process quickly so that consumers get the benefit of the law. The panel has said that states must not dilute the norms compromising the spirit of the Central law.

RERA aims to protect home buyers interest and also bring transparency in the real estate sector.

Sources said some of the members of the Subordinate Legislation Committee asked housing ministry officials why the Centre did not notify the rules and preferred giving this task to the states, which has resulted in delay. Till now only 12 states and Union Territories have notified the rules and another 16 have prepared the draft rules.

“The ministry replied that since the law was framed after deliberation with state governments and they demanded full say in notifying the rules, the Act empowers them to frame the rules. This has been done to respect the federal structure. Land and real estate are also state subjects,” said a source.

Ministry officials have informed the panel that a dozen letters have already been written to the state governments including the chief ministers to expedite the notification of rules and for setting up of the regulator. The Centre has notified the rules and thereby paving the way for implementation of the law from May 1.

Fight for RERA, a flat owners association, which had taken the lead in pushing for the new law, had earlier taken up the lukewarm response of states to notify the rules with the parliamentary panel. It had also pointed out how some of the states such as Uttar Pradesh, Madhya Pradesh and Gujarat, which have notified the rules, have diluted the norms in favor of builders, hurting consumers and their interest.

Source: http://timesofindia.indiatimes.com/india/states-must-not-dilute-real-estate-regulation-rules-house-panel/articleshow/58386079.cms

States Must Not Dilute Real Estate Regulation Rules, House Panel

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