Minister of Housing and
Urban Poverty Alleviation Shri M.Venkaiah Naidu today urged the States
and Union Territories to rise to the occasion and implement the Real
Estate (Regulation & Development) Act ,2016 from the first of May this
year, as proposed in the Act. He addressed a meeting of Chief
Secretaries and senior officials of States and UTs convened by the
Ministry of HUPA to discuss implementation of the Real Estate Act.
Shri Venkaiah Naidu said “ Real Estate Act is one of the most consumer
friendly laws passed by the Parliament and States have no power to
dilute its provisions. This law, which was widely welcomed and
appreciated benefits both the buyers and sellers of real estate
properties besides enhancing the credibility of the sector. There is lot
of hope and expectation from this act by all the stakeholders. There are
some media reports that some States have diluted some provisions of the
Act in the Rules notified by them. States don’t have such powers and I
hope such reports are not true. Today, I want to make it clear that any
compromise with the spirit of the Act will have serious implications
including public outcry. Whoever does so will have to face the public
outcry. I expect the States and UTs to rise to the occasion and ensure
implementation of the Act from May this year as proposed in the Act by
taking necessary measures in time”.
Later, various aspects of the Real Estate Act were discussed in detail.
Responding to the views and suggestions made, Dr.Nandita Chatterjee,
Secretary(HUPA) clarified that no amendments to the Act would be
considered at this stage since full implementation of the Act would
begin only in May this year when Real Estate Regulatory Authorities and
Appellate Tribunals would become functional.
Dr.Chatterjee also clarified that the minimum plot size of 500 sq.mt
proposed in the Act for registration of projects with Regulatory
Authorities was arrived at after several rounds of discussions by the
Parliamentary Committees and in the Parliament and it can’t be altered
now. She said that the cut off date for the ongoing projects that have
not received completion certificates for including under the purview of
the Real Estate Act would be May first this year, from when the full Act
comes into effect.
Regarding other issues raised by the States, the Ministry officials
stated that necessary clarity for the purpose of implementation of the
Act can be given in the Rules to be notified by the States/UTs, without
violating the spirit of the Act. These include stilt parking to be used
Responding to the issue of excluding balconies from the definition of
carpet area, it was explained that it posed no problems as costing could
be accordingly informed to the buyers. Interim Regulatory Authorities
have been proposed in the Act so that they could put in place necessary
institutional mechanisms for full fledged Regulatory Authorities could
become functional from the first of May this year, it was explained.
The Ministry has agreed to come out with a template for Website to be
made operational for disclosure of a range of information about the
projects as mandated under the Act. Any expenditure incurred by the
promoters on development of land could be included as part of the cost
of land, States were told.
During the review, it revealed that Andhra Pradesh, Arunachal Pradesh,
Chattisgarh, Haryana, Himachal Pradesh, Jharkhand, Karnataka, Kerala,
Mizoram, Rajasthan, Tamil Nadu and Puducherry would notify the Real
Estate Rules next month.
Punjab and Uttarakhand have informed that the needful would be done
after the elections to the State Assemblies.
Real Estate Rules have so far been notified for Gujarat, Madhya Pradesh,
Maharashtra, Uttar Pradesh, Delhi, Chandigarh, Andaman & Nicobar
Islands, Dadra and Nager Haveli, Daman & Diu and Lakshadweep.