New Delhi: Minister of State for Housing, Rao Inderjeet Singh has asked the Haryana government not to dilute provisions of the Real Estate (Regulation and Development) Act as this would deprive home buyers of ongoing projects the benefits of this significant piece of legislation framed to protect their interests.
In a strongly worded letter to Manohar Lal Kattar, Chief Minister of Haryana, the minister said, "It is found that certain provisions of the Draft Rules are not in consonance with the letter and spirit of the parent Act. It would deprive the home buyers of ongoing projects the benefit of this special legislation which was passed by the Parliament to ensure the protection of consumers."
He further said that it is a settled law that subordinate legislation such as Rules, Regulations, and Schemes cannot be in violation of the principal Act and "any such provision inserted in the Rules would be open to legal challenge and liable to be struck down by the courts".
Singh said that the state government was trying to create unnecessary confusion by trying to define ongoing projects, carpet area, common areas and facilities, flat etc. "The term ongoing project has been used only at one single place in the entire Act in the first proviso to section 3(1)….All projects that have received completion certificate prior to the Act coming into force are out of the ambit of the Act. However, those projects that have not received completion certificate as on May 1, 2017, are covered under the Act. Thus, there appears no need to define the term 'ongoing project' in the Rules by the State".
The minister asked the state government to examine these and make necessary modifications prior to notifying the final Rules.
The minister also pulled up the Town and Country Planning Department of Haryana for the delay in notifying the draft Rules and has asked the state government to notify the final Rules soon and set up the Regulatory Authority and the Appellate Tribunal "immediately" to ensure timely implementation of the Act.
The Haryana government tweaked the definition of ongoing projects exempting several delayed projects from the purview of the Act. This has left the home buyers of Gurgaon, Dwarka Expressway, and Faridabad, the three top property markets of Haryana worried and anxious.
Home buyers have organised several protests and even submitted a memorandum to the Chief Minister seeking his intervention to prevent any watering down of the provisions of the law. They even organised a "havan", a Hindu ritual of offering prayers to the Lord, seeking divine intervention.