Adding another development in the Central government’s motive of regulating the real estate sector of India, the Telangana state government notified the Telangana Real Estate (Regulation & development) Act (RERA) on 3rd August 2017.
Starting from the definition of on-going projects to the role of real estate regulator, the newly formed state has notified the rules in such way that it covers all the prescriptions mentioned in the central Act.
As per the notification, projects that got the approval after 31st December 2016 by various government bodies and is built on more than 500 sq. meters of land having more than six units will come under the ambit of the RERA.
The notification also clarifies the fee for registering a project with Telangana RERA.
For group housing projects, Rs. 5 per sq. meter would be charged as a registration fee if the area of land does not exceed 1,000 square meters and Rs. 10 per sq. meter, capped to Rs. 5 lakhs if the area of the land exceeds 1,000 square meters.
In case of mixed development, a registration fee of Rs. 10 per sq. meter would be applicable if the area of land does not exceed 1,000 square meters and Rs. 15 per sq. meter, capped to Rs. 7 lakhs if the area of the land exceeds 1,000 square meters.
For commercial projects Rs. 20 per sq. meter would be charged as registration fee if the area of land does not exceed 1,000 and Rs. 25 per sq. meter capped to Rs. 10 lakhs if the area of the land exceeds 1,000 square meters.
For plotted development, the registration fee would be Rs. 5 per sq. meter capped to Rs 2 lakhs.
The notification also states that the developers have to deposit 70% of the funds received from the allottees in an escrow account. It also mandates the real estate agents to register themselves with the RERA to carry out the business.
The state government will soon appoint a chairman & members of Telangana RERA and will launch an online portal for the same.
The RERA portal will allow developers to register their on-going projects, real estate agents to register themselves and buyers along with realtors to file complaints with the RERA.