Union Minister for Housing and Urban Affairs Hardeep Singh Puri on April 12 said that there should be no dilution of the provisions of the Real Estate (Regulation and Development) Act (RERA) by states.
“No dilution is a norm. Those who have diluted will have to justify why they have diluted. And we will not bring the whole template down just because you have diluted it,” he said at a third meeting of the Central Advisory Council (CAC), constituted under the RERA Act, 2016.
The CAC deliberated on issues related to the implementation status of RERA by states and union territories (UTs); modifications in the rules framed by states, UTs; Strengthening RERA to ensure its effective implementation; structural safety of the projects; and the constitution of committee for resolution of legacy stalled projects.
On the issue of structural safety of projects, it was decided that the development authorities may ask for a structural safety certificate from the site engineer and promoter at the time of applying for the completion certificate. It was decided to take the matter with state governments in respect of forthcoming projects.
The responsibility (for the structural safety of projects) has to be assumed by the builders themselves. If the builder has gone wrong, or he/she has not been able to check something, full recovery from that person is the minimum, as thousands of people get affected, Puri said.
The deliberations of the Council were live-streamed on social media on official platforms of the ministry.
It was also decided that a meeting of the Council shall be held at least once a year and that a sub-group consisting of stakeholders concerned would meet once in six months, under the chairmanship of secretary, Ministry of Housing and Urban Affairs (MoHUA).
Action will also be taken to ensure the implementation of RERA in letter and spirit by establishing permanent Regulatory Authorities and Appellate Tribunals across the country. It was also decided that a detailed examination of reasons behind the non-implementation of orders passed by Regulatory Authorities or Adjudicating Officer regarding refund, penalty, compensation etc. may be carried out, the ministry said in a statement.
The meeting decided that a committee may be constituted to look into various aspects of the legacy stalled projects and propose a future course of action to ensure that homebuyers get homes, it said.
Registration of real estate agents on a pan-India basis was approved in principle. In this regard, the matter will be taken up with the states to finalise the modalities.
A one-day RERA conclave will be organised by MoHUA with all stakeholders to deliberate on key issues relating to the real estate sector, it said.
Homebuyers expressed satisfaction at the meeting saying that several of their suggestions were accepted at the CAC meeting. Homebuyers’ body Forum for People's Collective Efforts (FPCE) had suggested that a committee be formed under the leadership of the additional secretary of MOHUA comprising important stakeholders to take up the issue with respective state governments by personally visiting these states and ensuring necessary compliance immediately.
On the issue of tweaking the rules framed by states, the homebuyers' body had suggested that necessary instructions be given for compliance with the Supreme Court order dated February 14 in letter and spirit and accordingly general rules of all states should also be reviewed and placed before the Supreme Court for its consideration.
“This suggestion was accepted by the minister and all stakeholders were in agreement for review of all diluted general rules and agreement for sale and submitting it to Supreme Court for its directives,” said Abhay Upadhyay, president, FPCE.
On the issue of effective implementation of orders passed by Real Estate Regulatory Authorities or Adjudicating officers for the benefit of homebuyers, Puri said that deficiency does not exist in the Act.
“In some cases, orders are being passed but not being complied with. It is an issue of compliance,” he said at the meeting.
Homebuyers had also suggested that necessary directives be issued to all appropriate governments to ensure sufficient technical teams are provided to Regulatory Authority / Competent Authority to inspect every stage of construction at regular intervals to ensure structural safety and quality of construction and also enforcement of mandatory submission of Commencement Certificate as per RERA act 4(2)C for processing of RERA Registration Certificate.
Based on FPCE's suggestion, the minister said the developers should take responsibility for structural issues and more deliberations will take place in the next CAC meeting scheduled for October 22, which will be chaired by the housing secretary, Upadhyay told Moneycontrol.
During a discussion on the constitution of Committee for resolution of legacy stalled project, homebuyers' suggestion that representation of homebuyers must be ensured in the proposed committee was also accepted.
FPCE will be the homebuyers' representative in the proposed committee.
On the issue of stalled projects, the CAC agenda said that the Centre has established the Alternate Investment Fund (AIF)- Special Window for Affordable and Mid-Income Housing Fund (SWAMIH) investment fund of Rs 25,000 crore to provide last mile funding for projects.
The committee may comprise representatives from the Ministry of Finance, Ministry of Housing and Urban Affairs, and experts (dealing with stalled projects and insolvency proceedings) and give its recommendations to the central government within two months from the date of its constitution, the agenda said.
The Central Advisory Council (CAC) was set up by the government for the effective implementation of the real estate law in the country. Today was the third meeting of the CAC. The first two meetings of the CAC were held on May 14, 2018, and April 29, 2020.
The primary role of the CAC is that of an advisory body which is tasked with the function of finding more effective means to ensure the efficient implementation of RERA.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
