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New Real Estate Laws, No Regulator: What RERA Means For Noida, Gurgaon

Priya Singh 03 Dec 2023 245 Comment

The Real Estate Act came into force on May 1 to protect homebuyers from unscrupulous developers. As per the act, ongoing realty projects will have to be registered with RERA. Under the new law, states had to set up Real Estate Regulatory Authority (RERA) by May 1. The act makes it mandatory for buyers to register with RERA before launching or even advertising their project. The Real Estate (regulation and development) Act, 2016, touted to safeguard interest of homebuyers, came into force on May 1 to protect homebuyers from unscrupulous developers.Under the Act, the states have to set up Real Estate Regulatory Authority (RERA) and the act makes it mandatory for builders to register with RERA before launching or even advertising their project. Though the Act came into force on Monday, it was notified by only 13 states and union territories across India. While Uttar Pradesh has not constituted the regulatory authority, Haryana is likely to implement it only by June. Stay tuned with breaking news on HT Channel on Facebook. Join Now As of now, this is what the Act means for realty hot spots of Noida and Gugaon. Developers, homebuyers as well as officials in Noida remained sceptical about the implementation and efficacy of the act, as a real estate regulatory authority (RERA) has not yet been put in place. The UP government has not constituted a RERA and appointment of staff is yet to start. “The act has come into force but there is no RERA. So, where will we register our new or old projects. Nobody in the Noida authority or in the state government has told us how to proceed,” said a developer, requesting anonymity. In Noida, 86 group housing projects have been delayed by three to four years due to a slowdown in the realty sector, affecting around one lakh buyers who had invested in projects that were to be delivered by 2012. In Greater Noida, around 3.5 lakh homebuyers are yet to get possession of flats that were to be delivered to them from 2012. As per the act, ongoing unfinished realty projects will have to be registered with RERA. Without registration in RERA, homebuyers will not get benefited at all. “The UP government should look into the issue and constitute a RERA at the earliest. Chief minister Yogi Adityanath should recruit the required staff without delay, else the act will mean nothing to us because it will not make any difference,” said SK Nagrath, president of Jaypee Aman Flat Buyers Association. The Noida authority said that it will not allow new project operations to start till RERA rules are executed. “We have not received any communication on RERA from the state government. But we will adhere to the act and rules, which are into effect,” said Shishir Singh, additional chief executive officer of the Noida authority. Some developers said that they will sell flats in their projects as per new rules. “Once RERA is formed, we will get registration of our ongoing projects done under it. We will also execute buyer-builder agreement for new sale of flats under new RERA rules,” said Anil Mithas, CMD of Unnati Fortune Group. The Noida or Greater Noida authority were also confused over the issue. The chief executive officer of the two authorities, Amit Mohan Prasad, said, “The state government officials will tell us more about the issue.”