The implementation of the Real Estate Regulation and Development Act (RERA) is one of the biggest achievements in the Indian real estate sector. After the Act came into picture, it is now compulsory for developers to register their projects under RERA.
The Central Act considers those projects as ongoing which are yet to receive a completion certificate on the date of the notification of the Act. Completion certificate is the benchmark for exemption of projects under RERA as per the Central Act. According to Central Act – the promoter of an ongoing project which has not received completion certificate within the specified time mentioned in the sub-section, should make an application to the respective authority as provided in rule 3 and needs to disclose the below information:
(i) the original sanctioned plan, layout plan and specifications and the subsequent modifications carried out, if any, including the existing sanctioned plan, layout plan and specifications;
(ii) the total amount of money collected from the allottees and the total amount of money used for development of the project including the total amount of balance money lying with the promoter;
(iii) status of the project including committed completion time to the allottee at the time of sale, reasons for delay and the time period within which developer will complete the pending project which should be appropriate with the extent of development already completed and the same needs to be certified by an engineer, an architect and a chartered accountant in practice.
However, there have been some modifications and dilution from the Central Act by different State Governments, such as definition of ongoing projects and certain other conditions which are there in the Central Act.
Also Read: Dawn of RERA and GST Increases Demand For Ready-Possession Homes
