Regulatory deficit shouldn't halt sale

Regulatory deficit shouldn't halt sale

Do not penalise real estate for missing Rera.
The Centre has debarred real estate developers from marketing ongoing projects that are yet to be registered with the real estate regulatory authority (Rera) in the respective state, as per the Real Estate Act, 2016. The Union housing ministry needs to get real and reconsider. Most states have either not set up regulatory bodies under the newly notified Act, or are not ready with the attendant rules. The Centre needs to opt for a measure of flexibility on the issue, and allow marketing of real estate projects provided there's full disclosure and with the added provision that they are to be registered as soon as the state regulatory infrastructure is in place and functional.
Construction is a key driver of economic activity in general. Real estate and construction have not been doing too well and were hit by demonetisation. Yet, the outlook is bright, according to a recent study by Magicbricks (a sister concern of this newspaper) and KPMG, with potential buyers growing in numbers. Only when real estate developers can offload existing inventory can they start new projects and add their bit to reviving economic growth. Real estate sales should not stall because state governments have failed to put their regulatory structures in place. That would be not merely unkind but also unjust, and counterproductive from the point of view of giving a boost to economic growth.
True, section 3(1) of the Act does prohibit advertisement for projects -ongoing or future ones -without registration with the concerned Rera. When the Act was operationalised on May 1, a three-month period was deemed sufficient for the purpose. The Centre must urge all states to comply within the stipulated period. Reports say that of the 35 state and Union territories, 24 are yet to establish regulatory bodies as mandated by the law, and 16 are yet to notify the rules. The Act requires that all projects be registered online, but the reality is that 32 states and UTs have yet to develop websites for the purpose. And in such a scenario, simply going by the letter of the law may not be the best course of action.