Indore: Real estate sector, which so far considered as a safe sector to earn money for developers and a sector whose buyers are always susceptible to cheatings, will now be in a transformational change from May 1 as Real Estate Regulation Authority (RERA) will be functional from this date. Developers are given three months time to get registered with RERA.
The Act will come into force in Madhya Pradesh and its head office will be in Bhopal. In cabinet meeting held on Tuesday, the state government has approved posts required for the Authority. Though from May 1 it will start working, the full swing functioning will take at least one more month. Confederation of Real Estate Developers Association of India (CREDAI) sources said that the significance of RERA is no player can roll out new projects without being registered with the Authority. In other words a builder cannot advertise, start booking for property without being registered with RERA. For the ongoing projects, the developers have to get registered before August 1.
As far as customers are concerned, they will get maximum benefit of the RERA. Elaborated provisions are being made in favour of buyers. If a developer fails to give possession to buyer, then they will be liable to pay compensation to them. According to seriousness of offence, a builder can even be sent to jail. In a major relief to customer, Union finance minister Arun Jaitley had made mandatory for builders in last Union budget that they should charge only the carpet area while registry of property is done. At present they charge for the super built up area.
“CREDAI welcomes the move of setting up RERA, which is coming into force from May 1. For new projects starting after May 1 will have to get registered with RERA, while for ongoing projects, 3 months grace period, ie before August 1, is given to builders to get it done.”
-Atul Jhawar, Secretary CREDAI, Indore