LAW TO PROTECT HOMEBUYERS LIKELY TO MISS ITS DEADLINE
NEW DELHI: A landmark law designed to protect millions of homebuyers who face needless harassment because of limited legal options at times of dispute is set to miss its November target of becoming entirely operational across India.
The delay can be blamed on the states, including the Union territory of New Delhi, which didn’t frame rules within a six-month target that expires on October 31 for the real estate regulatory authority act to become operative.
“We are approaching the Parliament committee on subordinate legislation to seek more time for the states,” a Union housing and poverty alleviation ministry official said.
The law to regulate the real estate sector, which contributes about 9% of India’s gross domestic product, makes it mandatory for all projects and brokers to be registered with a real estate regulator who will oversee transactions and settle disputes. States are supposed to frame rules and appoint a regulator after Parliament passed the law this April. The law came into effect in May.
Developers could see a boon in the delay. They won’t have to register their projects, mandatory under the new law, if they complete it before the regulator is established. The law covers only ongoing projects where completion or occupancy certificate has not been given. That leaves anaggrievedbuyer,whohasbought a home in one of such project, without a chance to get the complaint redressed. CONT’D ON P6 >>P20