Centre to evaluate performance of states

NEW DELHI: Concerned over states diluting key provisions of the new realty law that Parliament cleared last year, the Union housing and urban poverty alleviation ministry has called a meeting on January 17 to take stock of the implementation of the Real Estate (Regulation and Development) Act (RERA).

Chief secretaries (housing) of all states will attend the meeting that will be chaired by housing minister M Venkaiah Naidu.

Sources said the meeting was triggered following complaints from consumer groups that several states, including Gujarat, UP, Maharashtra and MP, had reportedly diluted key provisions related to ongoing projects in their state law to favour builders.

“We will take stock of how states are implementing the realty rules and challenges that they are facing. Issues such as dilution of central law and states leaving out ongoing projects from the ambit of the RERA Act will also be discussed,” said a housing ministry official.

The realty law makes it mandatory for all such builders — developing a project where the land exceeds 500 square metres — to register themselves with the regulatory authority before launching or even advertising their project. Failure to do so will invite a penalty of up to 10 % of the project cost. For subsequent violation, developers will land up in jail for three years.

While states had to frame their own law using the central act as a template, the rules for the UTs were notified by the Centre. States can make changes to the central law depending on their requirement but they can’t completely dilute the provision of the parent Act.

The PMO had also sought a report from the ministry on the dilution of certain provisions by the states.