RERA Act would bring about a paradigm shift in the way the real estate industry operates
Even as the Real Estate Regulatory Act (RERA) comes into effect, delay in issuing notification and non-uniformity of rules across the states may dilute its effective implementation, says the rating agency Icra.
The Act would bring about a paradigm shift in the way the real estate industry operates and improve the level of transparency and accountability of developers, it said.
However, "for effective implementation of the provisions, the state governments had to frame rules governing these sections and set up state-level RERA and appellate tribunals.
"So far, only seven states have notified the required rules….The absence of a regulator or appropriate rules can result in a regulatory vacuum and dilution of the Act’s provisions," Icra Senior Vice President and Group Head, Corporate Ratings, K Ravichandran said in a statement here.
Except Uttar Pradesh, Gujarat, Madhya Pradesh, Maharashtra, Andhra Pradesh, Odisha, Bihar and the Union Territories, most have missed the deadline to notify rules under the Act, which was October 31, 2016.
States such as Karnataka, Haryana and Telangana have framed draft rules, but final rules are yet to be notified.
"The progress in setting up the RERA at the state level has also been slow and is likely to extend beyond the stipulated timeline of April 30, 2017," ICRA said.
Only Madhya Pradesh has set up its RERA, while some other states have set up interim regulatory authorities.
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