Ongoing Projects and RERA

Ongoing Projects and RERA

Ongoing Projects and RERA

According to news reports, real estate developers are free to promote and market current projects even after May 1, when the real estate act came into force across India. As per RERA, the ongoing residential and commercial projects have to be registered by July 31. Also, Developers do not need to get registration number for these projects in order to advertise, market or continue the usual activities at present. However, developers cannot launch new projects without first registering them with RERA. There was earlier confusion on this front and many developers halted their activities with respect to ongoing projects. But now this position has been clarified by the Union Housing and Urban Poverty Alleviation Ministry registration clause is applicable only to new projects launched after May 1. All the existing projects need to be registered only by July 31. A number of regulators and senior officials of Central and State Governments also confirmed that there is no bar on advertizing and marketing of existing projects. They dispelled all lingering doubts by clarifying that the existing projects need to be applied for registration only by 31st July. Further, one senior official confirmed that they would get a nod from the authority almost in all cases. According to RERA, projects that are ongoing on the date of commencement of the Act and for which completion certificate has not been issued, the promoter shall make an application for registration of the project within a period of three months from the date of commencement of the Act. At the same time, the Act prohibits any pre-launch marketing of a real estate project before registration. Chairman of CREDAI informed that while the rules are quite clear, many developers are extending the provisions meant for new projects to their currently ongoing ones. He requested the Governments concerned to speed up and create the necessary legal infrastructure. None of the States, barring Madhya Pradesh and Maharashtra have created the necessary legal infrastructure. In Maharashtra, the State Government has chosen an interim regulator even as the Union Government is pushing the State Governments to appoint a full-fledged regulator in their States. Vice President of CREDAI clarified that marketing and advertizing of existing projects is allowed. Rules are made to streamline the operations of a sector and RERA is also like that. All the current projects are ready to be registered, but for this purpose, a regulator should be appointed and the official website should be up and running. All genuine builders have put 100 per cent of the sales proceeds, and more, to complete projects.