BHUBANESWAR: As property buyers are entitled to seek relief under the Real Estate (Regulation and Development) Act, 2016 with effect from May 1, the Ministry of Housing and Urban Poverty Alleviation has urged the State Government to implement the law from the stipulated date.
“Real Estate Act is one of the most important reforms for the sector which would bring benefits to all stakeholders. It is, therefore, my sincere request to please bestow your personal attention to this matter so that the Act is implemented in time and in the spirit with which it was passed by the Parliament,” Union Minister of Housing and Urban Poverty Alleviation M Venkaiah Naidu said in a letter to Chief Minister Naveen Patnaik.
Naidu in his two-page letter to the Chief Minister said the Real Estate Act, 2016 was one of the most consumer-friendly laws passed by the Parliament and its timely implementation is the responsibility of both the Central and State Governments. This would not only provide the much-needed consumer protection but also give a fillip to the sector, benefiting all the stakeholders.
He has cautioned the State of a serious situation of vacuum arising if necessary institutional mechanisms as required under the Act are not put in place before that.
The Ministry, which had organised a consultative workshop last month to review the progress made by the States to implement the Act, said only four States namely Gujarat, Madhya Pradesh, Kerala and Uttar Pradesh have notified the final rules under the Act so far.
Under the provisions of the Act, both buyers and developers of real estate property can approach Real Estate Regulatory Authority (RERA) seeking relief against the other for violation of the contractual obligations and other provisions of the Act.
The State Government is in the process of framing rules under the Act for setting up an appellate authority before May 1, official sources said.
All residential and commercial real estate properties set up over a minimum area of 500 square meters or apartment with more than eight flats will have to be registered with the proposed RERA.
According to the new law, anyone found violating the norms will face a jail term up to three years and/or a fine.