Stakeholders pick holes in RERA

The long-awaited rules under the Real Estate (Regulation and Development) Act 2016 finally came into force in the state stipulating the norms for registration of projects and real estate agents besides others. Stakeholders rued that despite the extensive suggestions and recommendations from industry bodies, lacunae in the rules had been retained. The draft Real Estate (Regulation and Development) Act rules, better known as RERA rules, offer builders and real estate agents an escape route, as TOI first pointed out on September 11. If builders or real estate agents violate the RERA norms, they can pay a fine of 5-10% of the estimated cost of the project and escape imprisonment. The draft RERA rules had proposed a maximum of 20% of the estimated cost which has been reduced to 10% in the notified rules. "On payment of the sum of money for compounding the offence as ordered by the court, no further proceeding shall be taken against the accused person," the notified Goa Real Estate Regulation and Development) (Registration of Real Estate Projects, Registration of Real Estate Agents, Rates of Interest and Disclosures on website) Rules, 2017 say. Architects and real estate developers however, hailed the rules saying that it would go a long way in regulating the real estate industry, which has gained a bad reputation because of unscrupulous developers. The state government also formulated the Goa Real Estate (Regulation and Development) Regulatory Authority Form of Annual Statement of Accounts and Annual Report Rules, 2017 under which an annual report will have to be prepared. The annual report will provide information on the real estate agents and projects registered with the RERA authority and the number of cases filed before the authority.