With buyers entitled to seek relief under the Real Estate (Regulation & Development) Act, 2016 with effect from the first of May this year, the Central government has cautioned the states of a “serious situation of vacuum arising” if necessary institutional mechanisms, as required under the Act, were not put in place before that.
In the context of only four states and six Union Territories so far notifying the final Real Estate Rules and complaints of violation of some of the provisions of the Act by some States, Minister of Housing & Urban Poverty Alleviation Venkaiah Naidu has urged Chief Ministers to “take personal interest” in ensuring implementation of the Act in letter and spirit. In a letter dated February 9, 2017, to all the Chief Ministers of states, he stressed that “(The) Real Estate Act is one of the most important reforms for the sector, which would bring benefits to all stakeholders. It is therefore, my sincere request to please bestow your personal attention to this matter so that the Act is implemented in time and in the spirit with which it was passed by Parliament.”
Naidu also cautioned the Chief Ministers, stating, “Appropriate governments are required to establish the Real Estate Regulatory Authorities and the Appellate Tribunals, maximum by 30th April, 2017. The timelines are important as the Act would commence its full operation from 1st May, 2017, and in the absence of Rules and Regulatory Authority and Appellate Tribunal, the implementation of the Act would be affected in your state, leading to a vacuum in the sector.”