The Uttar Pradesh government has rewritten the real estate regulation rules, doing away with pro-developer clauses that diluted the countries first-ever law to clean up a sector besieged with problems of delayed projects.
The new rules, bring all ongoing projects where completion certificate was not issued on May 1, 2016, when Real Estate Regulation Act (RERA) was notified under its ambit.
The Samajwadi Party government had earlier tweaked the definition of ‘ongoing project’ to keep a majority of projects in cities such as Noida, Greater Noida and Ghaziabad out of the purview of the real estate regulator.
Mahendra Bahadur Singh is heading a panel formed by the Yogi Adityanath government to rewrite the real estate regulation rules after consumers’ group met the Uttar Pradesh chief minister and told him that instead of homebuyers the rules were framed to favour the builders.
Other relaxations relating to 70% cap on funds to be utilised by the builder from the money taken from home buyers have also been reincorporated as provided in the original. Committee, which should also have a representative of RERA, monitor all such expenses by the developer.
As per the Real Estate (Regulation and Development) Act, 2016, an ongoing project is basically a project “for which the completion certificate has not been issued as on May 1, 2016” on the date of commencement of the Act. This basically ensures that many home projects which are work-in-process come under the act. Recommendations on fines and penalties on developers that were earlier watered down, now have been restored as provided in the Centre’s Act.