As per central government recent press release, it is clarified that no developers shall be allowed to market their projects without getting registration under Real Estate Regulatory Authority (RERA). Since it has been almost 2 months from the last date of establishing regulatory authority, many states are yet not ready with any authority or website solution for builders to get registered.
This issue has become a big matter of contemplation among builders all over India. Builders from State like Uttar Pradesh are facing frustration because they are ready to get register themselves and their projects with the authority, but the authority in UP could be contacted.
“Enforcing an act in this manner where developers are ready to meet all the newly announced guidelines to continue with their business but the state governments deny them from doing so as they are not ready with the required infrastructure to register the projects. The state government must find out an interim system so that the act can be implemented without disrupting the business activities” said by N Hariharan, a senior counsel at Delhi high court.
Partners and Developers of big housing groups are pursuing the matter to the court so that court can give directions to the state government to come with a way to resolve this problem for the ease of business. Many developers like Super-tech are expecting the UP government should adopt the way Haryana government is registering projects in RERA. The state is registering projects having all the approvals with an undertaking from the developers that they would abide by the final rules which are yet to be notified by the Haryana government.
If the Developers do nothing and just wait for the authority to notify, it will lead to a massive slowdown of cash flow for the projects to take up to the completion stage which at final stage will affect the consumers only. Hence the developers are more aggressive towards the response of buyers in the market.
Note – Please note that the above article is part of our continuous research on the related matters. It is based on our interpretation of related regulations which may differ person to person. Readers are expected to take expert opinion before relying on above.