Changes in RERA likely in early 2019

Buyers say fiats under the ‘Removal of Difficulties’ clause will dilute the Act’s consumer-centricity

The Ministry of Housing and Urban Affairs (MoHUA) plans to push through some of the suggested changes to the RERA (Real Estate Regulatory Authority) Act, 2016, through a ‘Removal of Difficulties’ order, which does not require Parliamentary approval for amendments.

The window for such a process ends on May 1, 2019. However, home-buyers worry that such orders will dilute the Act’s pro-consumer provisions.

A number of suggestions to change the Act and to improve implementation were made during four regional workshops held over the last few months, MoHUA secretary Durga Shanker Mishra said on Monday. Representatives from State RERAs, consumer and home-buyer federations, as well as builder and real estate groups, had participated in the workshops.

“We have compiled the suggestions and we will see which of these changes can be made through the Removal of Difficulties clause,” said Mr. Mishra, adding that a committee set up for the purpose would meet on January 3. Its recommendations would then be sent to the Secretary and the Minister for approval.

Section 91 of the RERA Act gives the Centre power to issue orders to make provisions to remove difficulties in implementing the Act.

Cause for concern

Abhay Upadhyay, president of the Forum for People’s Collective Efforts set up to protect homebuyers and facilitate RERA implementation, is a member of that committee, but believes that making major amendments under the guise of a Removal of Difficulties order will be counter-productive and dilute the Act’s effectiveness

“Builders are demanding amendments to definitions that will change the very fabric of the Act,” he said.

The Act was approved by both Houses of Parliament and signed by the President in March 2016. Certain sections, including Section 91, were notified on May 1, 2016. Others were notified on May 1, 2017.

“We believe Section 91 has already expired in May 2018, but the government seems to be arguing that they can continue to amend those sections which were notified in 2017 until May 2019,” said Mr. Upadhyay.