The home buyers were mostly at the receiving end and lately, the biggest issue facing buyers is delays in completion of projects and in some cases builders cheating them of their life savings.
In its new shape, the Real Estate (Regulation and Development) Act, 2016, will set in motion the process of making necessary operational rules and creation of institutional infrastructure for protecting the interests of consumers. A proposal for a law for the sector was first mooted in January 2009 at the National Conference of Housing Ministers of States and Union Territories.
It will also bring about a change in the current sentiment among home buyers, boosting confidence among them, say market experts.
“The new law will set in motion the process of making necessary operational rules and creation of institutional infrastructure for protecting the interests of consumers and promoting the growth of real estate sector in an environment of trust, confidence, credible transactions and efficient and time bound execution of projects,” said an Urban Development Ministry official.
The ministry has notified 69 of the total 92 sections of the act on Wednesday this week bringing the Act into force from May 1, 2016 culminating the eight-year-long efforts in this regard.
Rules under the Act have to be formulated by the Centre and state governments by October 31, 2016 under Section 84 of the Act.
Real Estate Regulatory Authorities (RERA), with which all real estate projects have to be registered, and Appellate Tribunals for adjudication of disputes have to be set up within one year under Section 20 of the Act, the statement added.
The most important change that is being made is the shorter adherence timelines. Regulatory authorities will now be required to make regulations within three months of its formation as against six months earlier proposed, while the states will now have to make rules within six months of notification of the proposed Act as against one year that was earlier proposed.