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Discussions related to Real Estate matters, Real Estate laws, loans, financial queries

Real Estate Regulation Bill comes into effect from 1st May 2016

Postby webmaster » Mon May 02, 2016 12:56 pm

NEW DELHI: The Real Estate (Regulation and Development) Bill, 2016, became an act on May 1, kick-starting the process of making rules as well as putting in place institutional infrastructure to protect the interests of home buyers in India.

While acknowledging that the act is a positive development, property experts said the new rules should address problems faced by builders in getting sanctions and approvals in a timely manner. "Government authorities should also be made accountable for time bound approvals through the rules that will be made," said Anshuman Magazine, managing director of property advisory firm CBRE South Asia.

He said that if this happens, it will be one of the major steps towards the recovery of the Indian real estate market and will improve the confidence of both consumers and institutional investors - domestic or foreign. "Of course, it should not become another hurdle for development, which will then raise property prices in the long term," said Magazine.

The Ministry of Housing & Urban Poverty Alleviation notified 69 of the act's 92 sections that come into force from May 1. Rules for implementing the provisions of the act have to be formulated by the central and state governments within six months - by October 31 - the maximum period stipulated in Section 84 of the act.

The housing ministry will make the rules for Union Territories while the Ministry of Urban Development will do so for Delhi.

The key to providing succour to home buyers will be the setting up of Real Estate Regulatory Authorities, which will require all projects to be registered, and the formation of Appellate Tribunals to adjudicate disputes.

According to Section 20 of the act, state governments have to establish the regulatory authorities within one year of the law coming into force. These authorities will decide on the complaints of buyers and developers in 60 days.

The act seeks to protect the rights of home buyers, mandates registration of projects, including those that have not got completion or occupancy certificates.

Registration will require builders to set aside 70% of the funds collected from buyers and pay interest in case of delays. Any officer, preferably the secretary of the department dealing with housing, can be appointed as the interim regulatory authority.

Once the regulators are set up, they will get three months to formulate regulations concerning their functioning. Real Estate Appellate Tribunals need to be formed within a year - by April 30, 2017. These fast-track tribunals will decide on disputes over orders of the regulators within 60 days.

A committee chaired by the secretary of the housing ministry has started work on formulation of model rules so that states and UTs can frame their rules quickly, besides ensuring uniformity across the country. The ministry will also will come out with model regulations for the regulatory authorities.

The remaining sections of the act that have to be notified relate to aspects such as the functions and duties of promoters, rights and duties of allottees, prior registration of real estate projects with the regulatory authorities, recovery of interest on penalties, enforcement of orders, offences, penalties and adjudication.

Considering that there 12 months left for the regulatory authorities to be set up by the states, builders are expected to speed up work to avoid the stringent provisions of the new real estate regulatory act.

http://economictimes.indiatimes.com/wea ... 069308.cms
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Relief to home buyers: New Real Estate Act comes into force

Postby webmaster » Mon May 02, 2016 12:58 pm

The Real Estate Act, designed to protect consumer interest and improve accountability of developers, will come into force today, setting in motion the process of making necessary operational rules and creation of institutional infrastructure.

An official statement said that the rules will made “within a maximum period of 6 months” as per the provisions of the Act.

It also said the proposed authorities, which will ensure timely execution of projects, and the appellate tribunals to adjudicate cases will come up in one year.

The Real Estate Act makes it difficult for promoters and builders to delay projects and gives relief to home-buyers and proposes imprisonment of up to three years besides monetary penalties for any violation of rules.
The law also makes it mandatory for all residential and commercial projects to register with the Regulator and will apply to new and ongoing projects.

“As per the notification announcing the commencement of the Act on May 1, 2016, rules under the Act have to be formulated by the Central and State Governments within a maximum period of six months i.e by October 31,2016 under Section 84 of the Act,” the statement said.

The Ministry of Housing and Urban Poverty Alleviation (HUPA) has notified 69 of the total 92 sections of the Act on Wednesday, the statement said.

Appellate Tribunals will be required to adjudicate cases in 60 days and the Regulatory Authorities will have to dispose of complaints in the same number of days.

“…A Committee, chaired by Secretary (HUPA), has already commenced work on formulation of Model Rules under the Act for the benefit of States and UTs so that they could come out with Rules in quick time besides ensuring uniformity across the country.

“The Ministry will also will come out with Model Regulations for Regulatory Authorities to save on time,” the statement said.

A proposal for a law for Real Estate was first mooted at the National Conference of Housing Ministers of States and Union Territories in January, 2009.

http://www.firstpost.com/business/real- ... 58418.html
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Re: Real Estate Regulation Bill comes into effect from 1st May 2016

Postby webmaster » Mon May 02, 2016 1:11 pm

The Real Estate (Regulation and Development) Act, 2016 will come into effect from Sunday.
It has set in motion, the process of making necessary operational rules and creation of institutional infrastructure for protecting the interests of consumers.

Earlier this week, the ministry of housing and urban poverty alleviation (HUPA) notified 69 of the total 92 sections of the act which would the act into force from May 1.

As per the notification of the Ministry, rules under the act have to be formulated by the Central and State Governments within a maximum period of six months.

The ministry of HUPA would make rules for union territories without legislatures while the ministry of urban development would do so for Delhi.

As per the act, Real Estate Regulatory Authority will be formulated within one year.
The Regulatory Authorities will have to dispose of complaints in 60 days and Appellate Tribunals will be required to adjudicate cases in 60 days.

http://www.hindustantimes.com/india/rea ... 2EsJI.html
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