Real estate watchdog tied up in state regulations, to get delayed

NEW DELHI: The failure of most states to put in place a regulator ahead of the April 30 deadline has put a question mark on the Centre’s effort to protect home buyers by giving them a platform to resolve disputes quickly.

Madhya Pradesh is the only state to have set up the real estate regulatory authority (Rera), a year after Parliament passed a law to regulate residential and commercial projects and protect the interests of buyers who complain of delays and cost overruns.

“We have written to states, held multiple national and regional consultations to ensure they expedite the process. But we have not got response from some states, including West Bengal,” said a housing and poverty alleviation ministry official.

The real estate regulatory authority act that came into force on May 1, 2016, provides for a regulator in states to oversee transactions and settle disputes.

States were given a year to get the regulator in place. Without these regulators, the realty law will be ineffectual.

Builders have to register a project coming up on 500sq m or more with the regulator before they launch or even advertise their plan.

Only Madhya Pradesh had set up the Rera, minister of state, housing and urban poverty alleviation Rao Inderjit Singh told the Rajya Sabha on April 6. India has 29 states and seven union territories, which are administered by the Centre.