The much awaited Real Estate (Regulation and Development) Act, 2016 has comes into force from the first May. The public oriented law to regulate the real estate sector is aimed at bringing transparency in the sector to end the harassment of home buyers at the hands of unscrupulous builders.
The law will ensure timely delivery and set up a practical regime for dispute resolution.
Due to lack of a sector regulator, home buyers have suffered endless and inordinate delays in getting the possession of their property.
The law makes it compulsory to register any group housing society constructed on a plot size of 500 square or more to register with state specific regulators and disclose all necessary information about the project, company to home buyers.
As per the notification, Rules under the Act have to be formulated by the Central and State Governments within a maximum period of six months.
Ministry of Housing & Urban Poverty Alleviation has notified 69 of the total 92 sections of the Act on last Wednesday, bringing the Act into force from 1st May, 2016.
It also said the proposed authorities, which will ensure timely execution of projects, and the appellate tribunals to adjudicate cases will come up in one year’s time.
The Act makes it difficult for promoters and builders to delay projects and gives relief to home-buyers. It also proposes imprisonment of up to three years besides monetary penalties for any violation of rules.