
The real estate sector in India saw a huge growth in the last 20 years. The returns from investments in this sector have been huge as compared to other sectors. This is the reason people have preferred to invest in real estate. There has also been a downfall during the last five to six years in some cities but still this sector is performing better. However, the property buyers have been concerned about the lack of accountability in this sector despite billions of rupees being invested in it all over the country. What’s more, the real estate sector was not even guided by a separate legislation. There have been several instances wherein the builders delayed in giving possession to the customers.
As these cases rose to a great level, the Govt decided to streamline the sector by protecting rights of property buyers and to boost the real estate investments as well. The legislative process to enact a law began during Congress led UPA Government in 2013. On 14th August 2013 the Real Estate (Regulation and Development) Bill was introduced in Rajya Sabha. On 9th September 2013 this bill was referred to the Standing Committee on Urban Development. Lots of deliberations took place between different stakeholders in October and November 2013 which included Govt , representatives from real estate sector , NGOs etc.
In Feb 2014, the Standing Committee and Urban Development Ministry submitted its report to the Parliament. On 7th April 2015, the Union Cabinet headed by Prime Minister Narendra Modi gave approval for making new amendments in this bill which was introduced in Rajya Sabha on 6th May 2015 and referred to the standing committee with 21 Rajya Sabha members. The committee made some changes and 20 amendments were introduced and finally the bill was passed by Rajya Sabha on 10th March 2016. The Lok Sabha also passed this bill on March 15th and on March 25th 2016 President of India gave his assent to the bill. From May 1st 2016 The Real Estate Regulatory and Development Act -RERA came into force across the country except Jammu & Kashmir.
RERA in J&K
As Real Estate Regulatory and Development Act 2016 could not be extended to J&K in view of Article 370 , the J&K Government headed by the then Governor Satya Pal Malik on December 16th 2018 gave assent to enact a similar state law in J&K called Jammu & Kashmir Real Estate (Regulation and Development) Act 2018. This was the time when BJP had taken back its support from PDP and the erstwhile state was put under President’s rule. Finally the Govt of India in October 2020 implemented Real Estate (Regulatory & Development ) Act (RERA) in the Union Territory of Jammu and Kashmir through a Gazette notification issued by the Ministry of Home Affairs (MHA). The order issued on Gazette of India, under provisions of the Union Territory (UT) of Jammu & Kashmir (J&K) Reorganisation (Adaptation of Central Laws), said:
“The Real Estate (Regulation and Development) Act (RERA), 2016 will now be applicable in the UT and Section 86- In sub-section (2), for -the Union territory Government of Puducherry occurring at both the places, substitute,-the Union Territory Government of Puducherry or the Union territory Government of Jammu and Kashmir”.
After 4 months, J&K Government in February 2021, initiated the process for constitution of the Real Estate Regulatory Authority (RERA) under the provisions of the Real Estate (Regulation and Development) Act, 2016.
The J&K Housing and Urban Development Department issued an open advertisement inviting applications from eligible/desirable persons for selection to the post of Chairperson and Member(s) of the RERA. On August 1st 2022 after almost 2 years of extension of this central law (RERA) to the UT of J&K, a Retired IAS officer and former Chief Secretary Goa, Rai was appointed as the first chairperson of the Jammu and Kashmir Real Estate Regulatory Authority (RERA) on August 1, 2022.
“In exercise of the powers conferred by Section 22 of the Real Estate (Regulation and Development) Act, 2016, the J&K government appoints Parimal Rai, IAS (retired), as Chairperson of the J&K Real Estate Regulatory Authority (RERA),” read the notification issued by the then Principal Secretary Housing and Urban Development Department Dheeraj Gupta. After 50 days of his appointment Parimal Rai resigned from the post of RERA Chairperson. The Govt accepted his resignation with effect from August 12 th 2022.
“In exercise of the powers conferred by Section 24 of the Real Estate Regulation and Development) Act, 2016, the Government of Union Territory of Jammu and Kashmir hereby accepts the resignation of Parimal Rai, IAS (retired), from the post of Chairperson Jammu and Kashmir Real Estate Regulatory Authority (RERA), w.e.f., August 12, 2022,” read the order issued by Principal Secretary J&K Housing and Urban Development Department J&K Government.
Importance of RERA
As explained above, the Real Estate Regulation and Development Act (RERA) was enacted by the Parliament to regulate the real estate industry in India and safeguard home buyers’ rights. Before this law was enacted the property buyers especially flat or homebuyers in India frequently complained that the real estate sector was tilted in the favour of the builders and developers. That was the main reason the Govt of India came up with RERA to make real estate transactions between the homebuyers , customers and real estate dealers more transparent and equitable. The preamble of this act says that this act is to establish the Real Estate Regulatory Authority for regulation and promotion of the real estate sector and to ensure sale of plot, apartment or building, as the case may be, or sale of real estate project, in an efficient and transparent manner. It further reads:
“To protect the interest of consumers in the real estate sector and to establish an adjudicating mechanism for speedy dispute redressal and also to establish the Appellate Tribunal to hear appeals from the decisions, directions or orders of the Real Estate Regulatory Authority and the adjudicating officer and for matters connected therewith or incidental thereto.”
The main objectives of the Real Estate (Regulation and Development) Act 2016 are listed as under:
- To set up a Real Estate Regulatory Authority -RERA in every state and union territory of India which will protect the rights and interests of the homebuyers in India
- To maintain transparency in real estate transactions & to ensure the accurate flow of information between developers and homebuyers
- To impose greater responsibilities on builders as well as buyers and to uplift the credibility of the real estate sector in India and attract investors
Conclusion
In the past, I have written extensively on non -implementation of central laws in J&K particularly Right to Information Act (RTI) , Right to Education Act (RTE), Forest Rights Act (FRA), Consumer Protection Act, Fair Compensation Act. The Real Estate Regulation and Development Act 2016 is another progressive law that is not being enforced on the ground. I filed a detailed video report about this issue in Kashmir Observer’s digital platform some months ago.
At a time when the government wants more investments in the real estate sector in J&K it is a matter of concern that the Real Estate Regulatory Authority-RERA is yet to be constituted under the Real Estate Regulation and Development Act 2016.
Builders in J&K are not following the Real Estate Law as they make massive constructions without anyone to take action against them. The builders, as per media reports, go for more floors in the buildings especially around Jammu and such constructions are made which are not approved in the original plans. Like other states many customers are not given possession in time by the builders and there is nobody to hear their grievances.
The government must hold an audit of all the progressive central laws applicable in J&K post article 370 abrogation. In-fact, this issue was raised by this author before the Union Home Minister Mr Amit Shah in November 2021 at Raj Bhavan Srinagar during his Kashmir visit. The Union Minister in front of the entire administration had shown seriousness about the issue and gave assurance to ensure better implementation of progressive central laws. It is now around 2 years since that meeting but we see many central laws not being enforced which includes Real Estates Regulation and Development Act -2016.
Views expressed in the article are the author’s own and do not necessarily represent the editorial stance of Kashmir Observer
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