HYDERABAD: All the ongoing and new real estate ventures should be registered under Real Estate (Regulation and Development) Act within three months from now. RERA rules will be applicable to ventures launched since Jan 1, 2017.These are the salient features of the guidelines issued by government for RERA for the state. Meeting the deadline of July 31 for issuing guidelines for RERA, the state government issued the same late on Monday night.
According to official sources, the GO was sent to the law department for minor corrections and it will be released on Wednesday.Officials claim that RERA guidelines will be purchaser-friendly. One such feature is that if a person is purchasing a flat, he will not get bank loan if the venture is not registered under RERA. Thus, buyers will not fall for unauthorised ventures.
As for realtors, they should not divert the money collected for one venture to another venture. The guidelines make it clear that 70 per cent of the amount collected from purchasers should be deposited in a bank account opened for that particular venture. The RERA rules will be linked to the registration department. If a venture is not registered under RERA, the registration department will not do registration of that property.
Under the fresh guidelines, officials will constitute a RERA Tribunal which will include judges and IAS officers. There is a penalty clause in the new guidelines. If a realtor fails to complete a venture within the deadline announced by the company, realtor will be levied a penalty at the prevailing interest rates of State Bank of India and an additional 2 per cent surcharge on it. If the interest rate is 10 per cent, then the realtor has to pay a 12 per cent penalty on the venture’s total cost.Director of Country and Town Planning director Balakrishna confirmed to Express that the GO specifying the guidelines for RERA were issued.
RERA Highlights
The Act will be applicable to all projects launched on after January 1, 2017
All ongoing projects have to be registered within 3 months.
If a realtor delays a project, he has to pay penalty
Registration dept won’t register properties not registered under RERA
Amount collected for one venture should not be diverted to another
CREDAI hails proposed RERA guidelines
This is definitely a welcome decision as it is good for both consumer and developer. The move to include only those ongoing projects that were started after January 1, 2017 is good as otherwise a lot of litigation would have taken place, said G Ram Reddy, president, CREDAI, Hyderabad