Builders are worried about the deadline to sign up for Real Estate Regulatory Authority (RERA). Any developer or agent who does not comply with July 31st can be jailed or penalized upto 10% on project value.
This regulation has been informed to all states and union territories. However, most of the states have not launched the government websites yet. Some of them have appointed interim tribunals. Some states have relaxed their regulations, leading to states like Haryana and Uttar Pradesh to revisit their regulations as well.
The dilution of RERA regulations by some states like Haryana and UP is concerning since RERA is all about ensuring that properties have completion certificates. If a property does not have completion certificate, then buyers of project can visit the state RERA to get their problems met. However, relaxation of rule means some builders might not come under the RERA ambit and hence, might be able to escape the completion certificate requirement.
For instance, UP has modified the definition of ongoing projects to mean a project where development is going on but has not been issued completion certificate but excludes projects where services have been handed over to the local authority for maintenance, where common facilities have been handed over to the rwa, where development works were completed and deeds have been executed for seventy percent of the units, and where development has been completed and completion certificate had been applied for.
Because of this regulation, a majority of properties have been left out. Completion certificate is the final proof that the property has been constructed by meeting all regulations.