Clearing the air on real estate developers issuing advertisements, the government has said no ongoing or future projects can be advertised without registering them first with the new regulator.
The clarification is likely to further dampen the already subdued real estate market that has seen no real appreciation in value of property or sales growth during the last few years.
The Real Estate (Regulation and Development) Act was passed last year to regulate the sector, eliminate fly-by- night operators and protect buyers’ interest. The Act came into force from May this year.
Realtors’ body NAREDCO had submitted a representation to Ministry of Housing and Urban Poverty Alleviation seeking clarity on advertisement and sale of the ongoing projects amid conflicting reports and interpretation on the issue.
“Section 3 (1) of the Act prohibits advertisements for all projects (ongoing/future) without registration with the real estate regulator. This provision has come into effect from May 1, 2017,” the ministry said, while responding to the NAREDCO’s letter.
NAREDCO President Parveen Jain said the prohibition on advertisements and sale in the ongoing projects will hit the industry.
As per the Act, Section 3 (1) specifies that “no promoter shall advertise, market, book, sell or offer for sale, or invite persons to purchase in any manner any plot, apartment or building…,in any real estate project or part of it, in any planning area, without registering the real estate project with the Real Estate Regulatory Authority established under this Act.”
For the ongoing projects, this section provides that the promoter should make an application to the authority for registration of the project within a period of three months from the date of commencement of this Act.
Ending the 9-year long wait, the real estate law, which will regulate the realty sector involving over 76,000 companies, came into force from May 1, 2017.
With all the 92 Sections of the Act coming into effect, developers are required to get all the ongoing projects that have not received completion certificate and the new projects registered with regulatory authorities within three months, ending July.
This would enable the buyers to enforce their rights and seek redressal of grievances after such registration.
Source: Press Trust of India