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The Central Government on Monday 31,October 2016 has notified the final rules to implement the Real Estate (Regulation and Development) Act, 2016 (RERA) that aims to bring transparency and set accountability in the sector and help in completion of stalled projects.

The rules, put in the public domain by the Ministry of Housing and Urban Poverty Alleviation  three months back for suggestions, will be applicable for five Union territories without legislature of Andaman & Nicobar Islands, Dadra & Nagar Haveli, Daman & Diu, Lakshadweep and Chandigarh.

The ministry of urban development is working on similar rules which would be applicable for the NCR, while state governments and other Union territories with legislature will either come out with their own rules or have the option to adopt the HUPA-notified rules.

Builders will now have to make public the details such as original sanctioned plans of the ongoing projects with specifications and changes made later, total amount collected from allottee, money used, original timeline for completion and the time period within which the developer undertakes to complete the project, duly certified by an engineer, architect or practicing chartered accountant.

The final rules direct companies to upload on the webpage of the project the information regarding number and type of apartments or plots, garages booked, status of the project with photographs floor-wise, status of construction of internal infrastructure and common areas with photos, status of approvals received and expected date of receipt, modifications in sanctioned plans and specifications approved by the competent authority within 15 days of expiry of each quarter.

As per the Act, the Real Estate Rules were required to be notified by all the concerned by October 31,2016. In view of the delay in this regard, the Ministry of HUPA has sought time from the Committee on Subordinate Legislature of Rajya Sabha for notifying the Rules.

It will enable buyers who have invested in real estate projects -including existing ones -to secure interest at 10.9% per annum for delayed possession.

In case a buyer is seeking a refund, they will now be entitled to a refund on the entire payment at the same rate, and the builder will have to repay the amount within 45 days of a claim being made. The interest rate has been fixed at 2 percentage points above the SBI’s marginal cost of funds (the current benchmark lending rate for banks).

Now that the rules have been notified, every builder will have to register with the state regulator. The final rules specify that developers of ongoing projects will also have to deposit 70% of the funds collected, but which have remained unused, into a separate bank account within three months of applying for registration.

 

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