According to Section 85 of the Real Estate Regulatory Act 2016, regulations are required to be notified by each state's regulatory authority within three months of its establishment. All residential and commercial ongoing projects are required to be registered with their respective state regulatory authorities in the next three months – i.e., July 30, 2017.
States which are Lagging to Catch up as as under
Assam, Karnataka, Tamilnadu, Punjab, Haryana, Himachal Pradesh, Mizaoram, Bihar, Jarkhand, Telangana, Rahsthan, Chhattisgarh and Uttarkhand
Developers will have to register all ongoing projects (occupation certificate not received) with relevant authorities by July 2017. The most important provision is to create escrow accounts by project to maintain 70% of cash proceeds for meeting land and construction costs. Companies will also have to rework their marketing policies to adhere to the required disclosures.
RERA is positive in the long term – it brings greater transparency and accountability, and ensures timely project delivery. We remain constructive on the industry, in view of the relative outlook of Grade A developers, which are well positioned to comply with the RERA regulations, along with strong end user demand.
