Telangana: Realty czars bully to water down act
Push for removal of clauses empowering homebuyers.
Hyderabad: The state government is attempting to dilute the Real Estate (Regulation and Development) Act, 2016, after coming under pressure from the real estate lobby. The government is finalising the rules as required by the Centre before May 1, 2017.
Some builders are exerting pressure on the government to exempt ongoing real estate projects from the Act.
The builders are being led by a prominent real estate group, which owes allegiance to the ruling party. They are asking officials not to rush with the draft guidelines in a hurry as the government is in favour of amending certain provisions in the Centre's Act.
To avoid media glare in Secretariat, builders are approaching officials at their residential quarters. The government heads, officials and builders are maintaining complete secrecy over their meetings and the outcome.
A builder on condition of anonymity said, “What’s wrong if certain provisions which are impractical and meant to harass builders are amended? Even some BJP-ruled states have made amendments though their parent party at the Centre brought in the Act. We want the Telangana state government to come to our rescue.”
The Union ministry of housing has received several complaints wherein complainants have alleged that the state governments are removing all provisions in the RERA Act that hold builders responsible for not meeting promises made in purchase agreements.
The state governments are either removing such clauses that empower a homebuyer or have diluted them in favour of builders. Some states have “openly” supported builders as they have notified their law to protect real estate czars instead of aggrieved homebuyers.
An official source in the municipal administration department said, “The Union ministry has sent the complaints to the Committee on Subordinate Legislature of Parliament for final review. Following this, if the panel finds that notified laws are not in compliance with the Real Estate (Regulation & Development) Act, 2016, all the provisions would be nullified. The panel has the power to order the states to re-notify the act with all stringent provisions.”