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Diluting RERA May Lead To Legal Action, Centre Warns States

May 29, 2017 02:16 PM

Diluting RERA may invite legal troubles, the Centre has warned states. The statement comes after Haryana diluted norms in its draft rules for RERA. It has kept the most-incomplete projects out of the Act’s ambit. This has forced the Centre to warn states against implementing regulations and rules violating the provisions of the Real Estate (Regulation and Development) Act. Dilution will lead to legal challenges. Numerous homebuyers have opposed the state government’s attempts to dilute RERA, particularly exemption of incomplete projects.

Union minister of state for housing Rao Inderjit Singh has stated in a letter to Haryana chief minister Manohar Lal Khattar that “subordinate legislation such as rules, regulations, schemes etc” cannot violate provisions of the principal Act. If any such rule is incorporated, such can be challenged legally and taken down by courts. Rai is Gurgaon’s MP. A ministry official said that the states must frame rules as per the Act. They can follow rules the ministry has notified for union territories without legislatures.

Sources have stated that UP and Karnataka will be amending their rules to bring all incomplete projects under RERA. Gujarat has kept all housing projects before November 2016 out of RERA’s ambit. Haryana, Madhya Pradesh, Rajasthan, Maharashtra, Tamil Nadu, Karnataka, Uttar Pradesh and Andhra Pradesh have incorporated rules that provides complete relief to all incomplete projects, reports ET Realty. RERA has clearly defined terms such as ongoing projects, flats, carpet area and disclosures that developers must submit.

It has also specified the penalty should builders commit offences. Hence, states must avoid defining the rules further to avoid litigation, interpretational difficulties and confusion.

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