Page 40 - CV April-May 2019 issue

B ridge the

gaps for an

effective

‘RERA’

ith most States not yet in sync demand is difficult to visualise. specific Acts with the Central Act, and found
with Central RERA, user that a few States have diluted a few crucial
States yet to notify RERA
Wdemand is unlikely to revive aspects.
So far, 20 states — Andhra Pradesh, Assam,
Demand for real estate is likely to remain Bihar, Chhattisgarh, Goa, Gujarat, Haryana, While the Central Act defines 'ongoing
listless unless consumer confidence revives Himachal Pradesh, Jharkhand, Karnataka, projects' to cover projects ongoing on the
with the effective implementation of recent Madhya Pradesh, Maharashtra, Odisha, date of commencement of the Act (May 1,
policy pronouncements and regulatory Punjab, Rajasthan, Tamil Nadu, Telangana, 2017), for which completion certificates had
changes. Tripura, Uttar Pradesh and Uttarakhand — yet to be issued, a few States have altered
the coverage to exclude projects where
The sector saw a structural overhaul of sorts and seven union territories have notified
applications had already been made for
in fiscal 2018, at both macro (implementation RERA. The Act does not apply to Jammu
completion certificates or agreements for
of the Goods and Services Tax) and sectoral and Kashmir, while most of the North-
specific share of units were already
(such as implementation of the Real Estate Eastern States, Kerala and West Bengal are
registered.
(Regulation and Development) Act, 2016, yet to notify it.
(RERA) levels. These include Andhra Pradesh,
However, even among those that have
Chhattisgarh, Haryana, Karnataka, Madhya
However, buyers continue to be fence- notified their respective Acts, many are yet to
Pradesh, Rajasthan, Telangana and Uttar
sitters, awaiting effective enforcement of form a permanent RERA authority and
Pradesh. On the other hand, Gujarat and
RERA and new launches in the affordable appellate tribunal.
Rajasthan have diluted the penalty payable
housing segment. As things stand, with most
(to 5 per cent from up to 10 per cent of the
States not yet in sync with the Central RERA Diluted provisions
project cost) for breaching the provisions.
and scheduled timelines, an improvement in CRISIL Research compared notified State-
38 / CONSTRUCTION VISION / May June 2019