Parliamentary standing committee looks into watering down of RERA by states

In an effort from preventing of watering down of Real Estate (Regulation and Development) Act (RERA) 2016, a parliamentary standing committee on subordinate legislation has started reviewing it.

The act, which comes into force from May 1 is supposed to protect the interests of the common man including transparent payment arrangements and timely delivery of properties by developers. Committee on Subordinate Legislation (COSL) is looking into how the act is being enforced by the states.

Various states, according to industry experts, have made certain changes in the act by not including existing projects or making changes in the punishment for non-completion of projects among other things.

"The committee is trying to ensure that the spirit of RERA remains intact. States cannot make changes in RERA that would make it a toothless act. It is important that developers who do not adhere to the norms are punished. That is why they are reviewing and based on our observation we will give our recommendations," said a source close to the committee.

The panel headed by BJP lawmaker Dilip Kumar Mansukhlal Gandhi has held one meeting on the issue and hopes to present its report in the monsoon session of parliament likely in July.

According to the panel, there are quite a few glowering examples of RERA being "tampered" with by the states. Gujarat for one does not have a retrospective effect, on properties developed before November 1, 2016.

In another case of RERA being watered down Uttar Pradesh government in its interpretation of RERA would not include projects that have applied for but have not received completion certificates. Also it would have projects where conveyance deed has been executed with 60 percent buyers and incomplete projects where maintenance has been handed over to association of allottees.

"There are quite a few examples in front of the committee. They are collating all this data and all this would be part of their report," added the source.