How to verify whether the state covers such project under the ambit of RERA


RERA was brought in force from 1st May, 2017. Every State and UT was mandated to establish Regulatory Authority in accordance with the Act and Rules of that State. Not every State has established the Regulatory Authority immediately and few amongst those who have set up the authority, diluted some provisions of the parent Act. State governments have notified designation of officer who will act as the Authority till the formation of Regulatory Authority.

RERA not only covers new homebuyers but also the homebuyers who have not received the possession till the commencement of the Act. With respect to the new real estate projects, the registration number is a mandatory. The projects which received completion certificate prior the commencement of the Act are not required to register. Whereas, the pre-RERA projects, for which the completion certificate has not been issued till the commencement of the Act, has to be mandatorily registered within three months within the commencement of the Act. Thus, if the homebuyer has booked prior to the commencement of the Act and yet not got possession, the project falls within the jurisdiction of RERA. The revised date of the ongoing project according to the development is to be provided while registering the project.

There are few states who decided to keep the ongoing projects out of RERA ambit. Whereas, some decided to keep them in the ambit with certain conditions.

How some states are keeping ongoing projects out of RERA?

For the purpose of keep projects out of the ambit of RERA have diluted the rules and in some of the state’s Ongoing projects are those projects which are under development and has not received the completion certificate but excludes the project which fulfill the following:

  1. Where common areas and facilities have been handed over to the association of allottees or the competent authority, as the case may be, for maintenance.
  2. Where sale/lease deeds or possession letter of minimum 60 of the apartments in the phase/project have been executed.
  3. Where all development work has been completed and CC has been obtained from a chartered engineer in practice as per prevalent Township Policy.
  4. Where CC has been obtained from the competent (local) authority.

A buyer who has not got possession needs to check is whether the state covers such project under the ambit of RERA or not. The substantive provisions of the Act is to be applied on all projects where completion certificate is yet to be obtained. The projects registered will carry a transparent plan for the project as the homebuyers will be informed about every detail and such registration will also help the homebuyers to get their houses as soon as possible without any unnecessary delay.

Disclaimer – The above points are based on the personal interpretation. The readers are expected to take expert opinion before placing reliance on it.

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