By Dr. Sanjay Chaturvedi, LLB, PhD
The ‘Agreement for Sale’ rules under the provisions of Real Estate (Regulation and Development) Act, 2016 [RERA] have been framed by MoHUA for Union Territories (UTs) without legislatures and same was sent to all the States and UTs for adoption in the year 2016 itself. Now, as per directions of Hon’ble Supreme Court, this Ministry in consultation with the Housing Department of every State is carrying out the exercise to ascertain as to whether the rules framed by the States comply with the substratum of the Rules which have been framed by MoHUA for UTs without legislatures.
Moreover, to redress the issues of stalled project in Noida, Greater Noida and Yamuna Express Authority, a High-Level Committee was constituted by the Government of Uttar Pradesh under the chairmanship of the Secretary, Ministry of Housing and Urban Affairs. Accordingly, Ministry has sent its recommendations to the State of Uttar Pradesh for taking necessary action.
RERA also seeks to protect the interest of homebuyers. Section 4 of RERA provides for compulsory deposit of seventy percent of amount realised for real estate project from allottees in a separate bank account. RERA also, inter-alia, makes the promoter liable to refund the amount, with interest and compensation, in case developer fails to complete or is unable to give possession of apartment, plot, building to home buyers; as per the terms of the agreement for sale.
Moreover, in order to provide last mile funding to stalled real estate projects which are net-worth positive and registered under RERA, a Special Window for Affordable and Mid Income Housing (SWAMIH) Investment Fund of Rs. 25,000 Crore has been created.
This information was given by the Minister of State for Housing & Urban Affairs, Shri Kaushal Kishore, in a written reply in the Rajya Sabha today.