The government of Uttar Pradesh has decided to form a real estate regulatory authority by the end of the year 2016. The regulatory authority will be formed to prepare specific guidelines to regulate the Real Estate sector.
To safeguard the interests of property buyers’ in the state, the UP government expects the real estate regulatory authority to execute its function as soon as it has been set up. Principal Secretary of the information department, UP, Mr. Navneet Sehgal commented on these developments.
The Real Estate (Regulation and Development) Act, 2016, came into force on May 1 of the year, starting the process of forming operational rules and putting in place the institutional infrastructure to protect consumers’ interests and promoting the growth of the realty sector in India.
As per the notification, rules under the Act have to be formulated by the central and state governments within a maximum of six months from the date of enactment. In addition, states are bound to form real estate regulatory authorities within a year from May 1, 2016.
The UP state government has also sought suggestions in this regard from city authorities, including Noida, Greater Noida and Yamuna Expressway authorities.
Home-buyers hope that the regulatory authority will help them in resolving the issues they face during home buying and afterwards. Similarly, developers also expect the rules of the Act to be friendly with the nature of their business and approval process be more straightforward and transparent.
“The good thing is that the regulatory authority will have to dispose buyers’ complaints in 60 days. Appellate tribunals too will be required to adjudicate cases in 60 days. As of now, such matters in Noida, Greater Noida and Ghaziabad are settled in consumer courts.
Real estate regulator is expected to form guidelines in a way that covers all stakeholders involved in the business, including government agencies. For example, if a government agency does not give time bound environment clearances, NOC for fire, water or power connection, etc. the official responsible should face legal action under the same regulatory law. We welcome the regulator, but it should also provide litigation-free land and other clearances necessary for a project to be delivered on time,” said Amit Modi, vice-president of Confederation of real estate developers association of India (Credai), Western UP.