Mumbai: The Ministry of Housing and Urban Affairs (MoHUA) has asked state governments to form a real estate regulatory authority immediately. At the same time, the Ministry has also requested to assign the task of Appellate Tribunal to any existing Tribunal where such a system has not been put in place.
As per the Real Estate Regulation Act (RERA), all existing and new projects must be registered with the regulator by July 31. The developers who fail to register under the new Act will attract a penalty of 10% of the project cost.
Meanwhile, two sets of builders have challenged the provision for mandatory registration of ongoing projects in two High Courts. The builders have pleaded that they should not be made to register their projects till the court passes a final order.
On July 11, the Nagpur Bench of Bombay HC had sent a notice to the Centre to respond. The government has stuck to the reason that RERA Act aims to protect consumer interests and foster the growth and development of the real estate sector.
Courtesy: http://www.nagpurtoday.in published on July 25, 2017