New Delhi: The much-awaited Real Estate Act comes into force on Monday with a promise of protecting the right of consumers and ushering in transparency but only 13 states, including Maharashtra, and UTs have so far notified rules. The government has described the implementation of the consumer-centric Act as the beginning of an era where the consumer is the king.
Real estate players have welcomed the implementation, saying it will bring a paradigm change in the way the real estate sector functions.
The government has brought in the legislation to protect home buyers and encourage genuine private players. The Real Estate (Regulation and Development) Bill, 2016, was passed by Parliament in March last year and all the 92 sections of the Act come into effect from May 1.
“The Real Estate Act coming into force after a nine-year wait marks the beginning of a new era,” housing and urban poverty alleviation minister M Venkaiah Naidu said. The minister said the law will make “buyer the king”, while developers will also benefit from the increased buyers’ confidence in the regulated environment.
“The Act ushers in the much-desired accountability, transparency and efficiency in the sector, defining the rights and obligations of both the buyers and developers,” Naidu added.
Developers will now have to get the ongoing projects that have not received completion certificate and the new projects registered with regulatory authorities within 3 months from tomorrow. Under the rules, it is mandatory for the states and UTs to set up the authority.
However, only 13 states and UTs have so far notified the rules. They are Uttar Pradesh, Gujarat, Odisha, Andhra Pradesh, Maharasthra, Madhya Pradesh and Bihar.