In the recent development in the real estate sector of Telangana, the state government notified the Telangana Real Estate (Regulation & Development) Act popularly known as Telangana RERA. It has been more than a fortnight since the state implemented the RERA rules but the government failed to set up the regulatory body for the same.
As per the RERA rules prescribed by the Central government, it is mandatory for the real estate developers to register their on-going projects within three months of the notification of the rules. In Telangana, the registration of real estate projects and agents has not started yet due to the absence of the regulatory authority.
Citing the establishment of the Real Estate Regulatory Authority a lengthy and time-consuming process, the white-collar government workers have requested Telangana CM K. Chandrashekar Rao to appoint municipal administrative and urban development secretary as the interim Chairman of the RERA Telangana . According to an official, the government has already appointed a selection committee who will suggest names for the post of RERA Chairman within 60 days. Thereafter, the state government will take another one month to appoint the permanent Chairman. When asked about the appointment of the Appellate Tribunal , the official said that the government may appoint officials from Endowments Tribunal or Telangana Sales Tax and VAT Appellate Tribunal as Appellate Tribunal for the RERA. As soon the state government will give its consent, the RERA registration of the projects and the agents will start, he added.
Telangana notified the Real Estate (Regulation & Development) Act on 3rd August 2017. As per the RERA experts, the Telangana RERA rules are in line with the rules notified by the central government and cover all the prescriptions mentioned in the parent 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 the registration of real estate projects and agents with Telangana RERA. It also mandates developers to deposit 70% of the funds received by the buyers in an escrow account.