New Delhi (IANS) - The government on May 4 asked the states to expeditiously complete process to notify the Real Estate Regulation Act (RERA) and appoint full-time regulators at the earliest. "So far, 14 states and union territories have notified RERA, which came into force on May 1 this year and another 14 states and union territories are at an advanced stage of notifying the Act," Rajiv Ranjan Mishra, Joint Secretary, Ministry of Housing and Urban Poverty Alleviation, said. Mishra was speaking at a seminar on "Real Estate Regulation Rules, GST and Affordable Housing (CLSS Scheme)", organised by the Federation of Indian Chambers of Commerce and Industry (Ficci) (pictured).
"RERA will positively impact the sales and industry's profit," he said. The Act aims to protect the rights of consumers and usher in transparency and accountability.
The sector, which has immense potential to generate employment and scope for investment, had remained largely unregulated over the years. But, with RERA in place, the sector is expected to receive the required fillip contributing to the overall growth of the economy. Mishra said that states should desist from changing the fundamental rules of the Act.
"There will be state-specific issues, which will require diverse solutions and states should consider those," he added. On affordable housing for all, he said there was a huge demand in this segment and developers should work in this sector proactively. "There is a need for stakeholders to work in tandem."
Mishra said that the industry would have to learn and adapt to the new modes of businesses.
"With the enactment of the Act, issues will arise and they will have to be dealt with proactively," he said and urged Ficci to share industry recommendations on the RERA with the ministry to ensure a smooth transition. On the occasion, the dignitaries released the Ficci-GT-Khaitan & Co Comparative State RERA Rules Report, which comprises a survey that studies the impact of RERA on the sector and stakeholders.
The findings show that over 60% of the respondents feel that going forward, transparency will increase in real estate dealings. Close to 60% of the respondents also feel that the RERA will increase governance hold in the sector and lead to increased investments.