A group of developers from Jabalpur and Nagpur have filed cases in Bhopal and Mumbai High court against keeping on-going projects under the ambit of the Real Estate (Regulation & development) Act (RERA).
According to some developers, the projects were started as per the old laws when the RERA was not in the scene. Now, the government is trying to place all the on-going projects under the ambit of the RERA. This move by the government will have retrospective effect in the real estate sector. Recently, the central government quashed the demand of developers to exclude all the on-going projects from the radar of the RERA.
As per the government official, the RERA is to safeguard the interest of the buyers and help them get their home for which they are waiting for years even after paying the amount asked by the developers. RERA is not retrospective as it covers only those projects which have not received the completion certificate on or before 1st May 2017.
As per the sources, CREDAI, a recognized group of real estate developers has asked all its members to register their on-going projects with the RERA and carry out the business as per the RERA rules notified by the states.
According to Praveen Jain, the President of National Real Estate Development Council (NAREDCO), the RERA safeguards the interest of the buyers and infuses professionalism in the realty sector. As the RERA will develop the real estate sector of India, the council will not approach the court against its implementation.
The Central government has directed all the states to ensure the fair implementation of the RERA and asked the real estate developers to register their on-going projects with the authority by 31st July 2017. If the developer fails to do so, the government will not allow the sale and marketing of those projects.
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