Kozhikode, Sep 9 : The state government will notify the much-awaited Real Estate Regulatory Authority (RERA) soon after the September 23 by-election in Pala.
Minister for Local Administration A C Moideen had on Monday confirmed to this effect. The Minister said that formalities are underway for its notification, before the bye-election. The authority will have a chairman and two members. However, the decision of the chairman is subject to a court clearance, the Minister said.
The notification and implementation of RERA has far-reaching significance and relevance in the light of the Supreme court reiterating its tough position on demolition of the five apartment complexes in and around Kundanoor in Cochin, which had been found to have blatantly violated Coastal Regulation Zone rules.
The court had given its ultimatum to get the buildings demolished by September 20 and instructed the Kerala Chief Secretary face consequences and to be present in the court on September 23. The state government authorities are meeting on Monday to discuss on the modalities, leaving no scope for the 400-odd flat owners who had invested crores to buy these luxury flats, in good faith.
The nexus between the builders and the officials of the local bodies, make things work out in favour of the developer. However, as the rule goes – let the buyer beware, the legal protection remains as a Damocles sword on their heads. The construction legalities apart, the other specifications that were published in the project brochures also get violated by many a builder leaving the purchaser suffers for life.
It has been much long that Kerala has been shying away from constituting and notifying RERA despite the Central Act coming into force in Mid-2017, envisaged to protect the interests of home buyers and to ensure fair play in real estate sector, as envisaged in the Central Act.
The 2016-notified Real Estate (Regulation and Development) Act envisages setting up of Real Estate Regulatory Authority (RERA) in each state for regulation of the real estate sector and acts as an adjudicating body for speedy dispute redressal of the consumers of the high-cost real estate business vertical.
It was to bring in transparency in the real estate business by insisting mandatory disclosure of project details to the property buyers and conducting the sale process strictly through agreement to be executed between buyers and sellers that the Central Government had brought in the much-sought-after RERA.
Protection to home buyers
The Act has made it mandatory for every real estate player to get their projects registered with the respective state’s RERA. This includes projects where the total area to be developed exceeds 500 square meters or the ones with more than 8 apartments to be developed and those projects which have not attained the completion certificate, before commencement of this act.
According to the provisions of the Act, the real estate authority of each state will intervene when breach of contract happens and shall imposed appropriate penalty on defaulters. All properties and projects shall come under the authority and required to be registered with the authority, prior to launching and selling of the properties.
The Act prohibits unaccounted money from being pumped into the sector and as of now 70 percent of the money must be deposited in bank accounts through cheques is now compulsory. A major benefit for consumers included in the Act is that builders will have to quote prices based on carpet area not super built-up area, while carpet area has been clearly defined in the Act to include usable spaces like kitchen and toilets.
RERA is considered as one of the landmark legislations passed by the Government of India. Its objective is to reform the real estate sector in India, encouraging greater transparency, citizen centricity, accountability and financial discipline. This is in line with the vast and growing economy of India as in future many people will be investing in real estate sector. (UNI)