Union government gets tough with states on RERA implementation

In a major boost to home buyers, union urban development and housing ministry has asked states to plug the loopholes in Real Estate Regulation ACT (RERA). A parliament committee has pointed out dilution of the RERA by the states in order to provide benefit to builders.

The parliamentary committee was asked to study implementation of rules for Real Estate Regulation ACT (RERA). In its report submitted in the Lok Sabha, the parliamentary panel has said that the most states have tweaked rules, which are beneficial to the builders but detrimental to the consumers.

The act was enacted to protect consumers but the onus to implement it was on the states. However, the parliamentary committee found that going against the spirit of the law several states including Rajasthan made changes suitable for builders. It said that because of this consumers are not getting the benefits they are entitles under RERA.

But, the union government has made it clear to the states that for effective implementation of the law while keeping in mind consumers’ interest, they will either have to change the rules not in accordance with the central act or frame new laws. Following the central ministry’s directives, the states will have to close …read more