The Real Estate Regulatory Authority (RERA) has started issuing online exemption certificates to builders for real estate projects which are completed prior to making any sale or marketing.
The module of these certificates was rolled out after RERA-Raj decided that developers who have completed their real-estate projects and procured completion certificates from any of the competent authorities including development authority, municipal corporation, and urban improvement trust (UIT) prior to making any sale, marking or booking in that project will be exempted from RERA Registration.
The developers falling under the category can now approach the Raj- RERA to seek exemption and the authority will issue an exemption certificate after charging a standard fee. Mitesh Rathore, an advocate familiar with the development said, “The move will promote the development of the real estate project out of the funds of the builders and reduce the dependency on the customers for funds. Also, it will reduce delay in completion of the project.”
Earlier RERA issued a show-cause notice to three developers in July under Section 59 read with Section 3 of the RERA Act of 2016 for having advertised their real-estate projects without obtaining prior registration. However, it was argued that the promoters have not violated Section 3 or any other provision of the Act as they neither marketed nor sold any unit in the impugned project before these were completed.
The authority was constituted to discharge the mandate of the act and regulate the duties of the promotor towards the allottees mainly of completing the project in the promised time period but once thereafter there remains nothing for authority to regulate added Rathore. After the decision, the authority operationalise the online application module.
