All the incomplete and ongoing housing projects too will come under the RERA.
All incomplete and ongoing housing projects will also be covered under the Real Estate (Regulation and Development) Act (RERA), Bombay High Court ruled on Thursday.
Some states such as Haryana and Uttar Pradesh had reportedly refrained from keeping ongoing projects under the ambit of RERA. Housing and Urban Affairs Minister Hardeep Singh Puri, who was speaking at the Idea Exchange programme, said there is no scope to loosen the regulation for any realty project, adding, “They (states which have diluted the law) will have to comply. I have already taken it up with them”.
In Haryana, ongoing projects were not included in RERA while in UP, ongoing projects that had applied for competition certifications were excluded.
The housing ministry had already written to various state governments regarding this.
The court, however, permitted the RERA authority to grant an extension of time to developers on a case-to-case basis for such projects. The court said the authority must not cancel any project or developer's registration where delay has been caused due to exceptional or compelling circumstances.
While Puri said the developers should be given a chance, defaulting builders will not be spared. Some builders will have to go to jail, a Financial Express report said quoting Puri.
On effectiveness of RERA, Puri said it has just been six months since implementation, but it is going in the right direction with builders appealing in court to challenge RERA decisions. While there are initial hiccups, affordable housing scheme as well as strict action will help in cleaning the real estate sector.RERA, which was implemented on May 1, seeks to protect the interests of home buyers and also boost investments in the real estate sector.