State authorities that diluted the definition of ongoing projects in the real estate sector under the Real Estate Regulation and Development Act (RERA) will have to rectify the RERA Rules as per High Court ruling.

According to the law notified by the Centre any project that has not got completion certificate by May 1, 2017, will be treated as an ongoing project and all such projects need to get registered with the regulator.

The HC has also made it clear that the regulator will have the right to register or not to register a project if the fresh timeline to complete the unfinished project is unreasonable.

Sources said the Bombay HC ruling will compel the states to take corrective measures. Several appeals by the urban affairs ministry to states including to BJP-ruled ones had gone unheeded when the Centre had asked them not to dilute the norms. The Centre had fought in favour of bringing all ongoing projects under RERA in the Bombay HC during hearings.

Source: Economic Times