All ongoing realty projects in India that do not get a completion certificate on or before April 30, 2017, will come under the limits of the RERA (Real Estate Regulation ACT).
Recently, Union Ministry of Housing and Poverty Alleviation has confirmed that the RERA will come into effect on May 1, 2017, and the new act will be applicable to ongoing development, which did not get the completion certificate before this date, this is a big step from Union Ministry after Demonetization.
The clarification appears after some states, including Uttar Pradesh and Gujarat, experienced claims of diluting the provisions of the act and intentionally letting off ongoing developments.
Uttar Pradesh in the draft rules has turned up with 4 exclusions to exclude incomplete developments from the group of “ongoing developments”, even as Gujarat has excluded all development launched earlier than the notification of the laws. Now investors & home buyers feel secure in upcoming residential projects in Noida, after experiencing so many fraudulent & fake promises from the local real estate developers.
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This indicates such developments need not be listed with the realty regulator in these states. On not including balconies from the description of carpet area, the Centre explained that it posed no problems as the price could be accordingly well-versed to the buyers.
The real estate regulation, which was approved by assembly last year, makes it compulsory for all real estate developer — developing a development where the land surpasses 500 square meters — to list them self with the regulatory authority earlier than launching or even promote their project.
Contempt to do so will lead a punishment of up to 10% of the development cost, according to the real estate law.
