Gujarat Notifies State RERA, But Rules May Not Be Retrospective


The Gujarat government notified the state rules of the Real Estate (Regulation and Development) Act on Saturday.
Highlights
  1. The Gujarat government notified the state rules of the Real Estate (Regulation and Development) Act on Saturday.
  2. Sources claim that the state’s RERA may not have a retrospective effect and will only cover real estate projects launched after November 1st, 2016
  3. This dashes the hopes of thousands of homebuyers who were hoping that RERA would help them deal with errant developers.
  4. The Central government is expected to notify the Real Estate (Regulation and Development) Act on the 31st of October, starting with the Union Territories.

AHMEDABAD: In a move that is certain to affect real estate development in the state, the Gujarat government has notified the state rules of the Real Estate (Regulation and Development) Act, which will come into force on May 1st. 2017.

The Real Estate Regulator Bill (RERA) came into force on May 1st, 2016 and states were asked to formulate rules within a period of six months which ends on 31st October. Gujarat is among the first few states to adhere to this deadline.

However, sources tell NDTV that the state’s RERA may not have a retrospective effect and will only cover real estate projects launched after November 1st, 2016. This essentially means that housing projects launched before the date will not be bound by the provisions of RERA. If this is true, real estate developers will have won a major victory as this has been a long-standing demand of theirs.

This also dashes the hopes of thousands of homebuyers who were hoping that RERA would help them deal with developers who delay projects, practice extortionate pricing and use inferior quality materials in construction.

This will also be in stark contrast to rules being made by other states including Maharashtra and Karnataka, where the state RERA is expected to have a retrospective effect.

Sources tell NDTV that the Central government is expected to notify the Real Estate (Regulation and Development) Act on the 31st of October, with the Union Territories of Andaman & Nicobar, Daman & Diu, Dadra & Nagar Haveli, Chandigarh and Lakshadweep being the first places where they will be rolled out.

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