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Real Estate Projects That Fail To Register by July 31st Will Become Unauthorised

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Real Estate Projects fail to register

Builders beware! If you don’t register your projects under the new Real Estate (Regulation and Development) Act by July 31, it will be deemed as ‘unauthorised’ construction by the real estate regulator.

“If builders fail to register their projects by July 31, all their projects will become unauthorized,” said Rajiv Ranjan Mishra, Joint Secretary, Ministry of Housing and Urban Poverty Alleviation at a conference on real estate regulation rules organized by industry body FICCI. RERA, which kicked in this week, mandates that all developers must register both their new launches and ongoing projects that have not received a completion certificate with the regulator by July 31.

 

Builders have nevertheless been allowed to advertise and sell their ongoing projects during the three-month period as they prepare to register their projects with the realty regulator. Many developers after May 1 have been advertising their ongoing projects with a disclaimer at the bottom.

A panel comprising Anthony De Sa, Chairman RERA and former chief secretary, Madhya Pradesh; Vini Mahajan, Additional Secretary, Housing Urban Development, Punjab and Dilbag Singh Sihag, RERA Haryana committee and former chief town planner of Haryana, all said that RERA allows developers to sell their ongoing projects till July 31.

The Act clearly states that “Provided further that, at the end of ninety days from the date of notification of section 3 of the Act, the promoter shall not advertise, market, book, sell or offer for sale or invite persons to purchase in any manner any plot, apartment or building respect of such land parcel unless he registers such independent phase as a separate real estate projects….”

“It is correct that without registration of new or ongoing projects which are not otherwise exempted, it is not allowed under Section 3 of the Act to advertise or market the project. However, it may be noted that physical filing of the application has been provided for in state rules till the website is up and running,” says Akshat Pande, partner, Alpha Partners, a law firm.

“Also, as soon as developers file their applications, the registration will be granted or the 30-day period will expire after which the project is deemed to be registered under section 5,” says Pande.

Source: Money Control

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