Real Estate (Regulation and Development) Act, 2016 Comes into Force from 1st May 2016 [ Current Affairs ]
On 1st May 2016 the Real Estate (Regulation and Development) Act, 2016 came into force. Union Ministry of Housing and Urban Poverty Alleviation (HUPA) had notified 69 of the total 92 sections of the Act to bring it into force from 1 May 2016 in this regard.
Key necessities of Acts
- It is sets up in sign of the procedure of making necessary functioning rules and creation of official organization for protecting the interests of consumers.
- It encourages the growth of real land sector in an environment of trust, confidence, credible transactions and well-organized and time bound execution of projects.
- Real Estate Supervisory Authority will be expressed within one year as per the order of Act.
- Governing Authorities will have to position of grievances in 60 days and Appellate Tribunals will be required to referee cases in 60 days.
- Rajya Sabha has passed Real Estate (Regulation and Development) Act, 2016 on 11th March 2016.
- Establishes state level regulatory authorities called Real Estate Regulatory Authorities (RERAs) and tribunals called Real Estate Appellate Tribunals (REAT) to settle arguments.
- It will apply the contract between the developer and buyer and fast track the mechanism to settle disputes.
- 70 % of the amount calm from buyers for a project must be kept in a separate bank account and only used for construction of that project and State government can also modify this amount to less than 70%.
- Developers will have to pay the same penal interest rate as the buyer does if delays in completion of projects on time.
- All information for recorded projects must be revealed on website of the RERA.
- It will include details of organizers, land status, layout plan, schedule of execution and status of various approvals.
- To eliminate any scope for wrongdoing the term fitted carpet area must be defined clearly.
- Published on: May 2, 2016