Real estate act 2016

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CS Sanjay H. Indulkar- Company Secretary

Corporate Advisory, Business Strategy & Transition, Fund Raising, Regulatory and Compliance. Email: [email protected], LinkedIn-connect: in.linkedin.com/pub/sanjay-indulkar/1a/865/811

Real Estate (Regulation and Development) Act, 2016


Came in to force on 1st May 2016.

The much awaited and widely acclaimed Real Estate (Regulation and Development) Act,

2016 comes into force on May 1, 2016 setting in motion the process of making necessary

operational rules and creation of institutional infrastructure for protecting the interests

of consumers and promoting the growth of real estate sector in an environment of trust,

confidence, credible transactions and efficient and time bound execution of projects

Ministry of Housing & Urban Poverty Alleviation has notified 69 of the total 92 sections

of the Act, bringing the Act -Real Estate (Regulation and Development) Act, 2016

culminating the eight years long efforts in this regard.

Chronology of events leading to the Real Estate (Regulation & Development) Act, 2016

1. January 20,2009-The National Conference of Ministers of Housing, Urban

Development and Municipal Affairs of States and UTs held on proposed a law for

real estate sector;

2. July,2011 - endorsed by Competition Commission of India, Tariff Commission,

Ministry of Consumer Affairs; -Ministry of Law & Justice suggested central

legislation for Real Estate Sector in under specified entries of Concurrent List of

the Constitution for regulation of contracts and transfer of property;

3. June 4,2013- Union Cabinet approved the Real Estate Bill, 2013 ;

4. December 9,2015-Union Cabinet approved the Real Estate Bill,2015 as reported by

the Select Committee of Rajya Sabha for further consideration of Parliament;

5. March 15,2016-Lok Sabha passed the Bill ;

6. March 25,2016-President of India accorded his assent to the Bill .The Real Estate

(Regulation and Development) Act,2016 was published in the Gazette for public

information on March 26,2016;

7. 69 Sections (out of 92)of the Real Estate (Regulation and Development) Act,2016

notified by the Ministry of Housing & Urban Poverty Alleviation on April 27,2016

bringing the Act into force with effect from May 1,2016.

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Notified 69 Sections of the Real Estate (Regulation and Development) Act, 2016

Chapter Section Brief CHAPTER 1 Definitions

Section 2 This section deals with the all the terms used in real estate sector

CHAPTER V The Real Estate Regulatory Authority

Section 20 to 39 (Except Section 40 Recovery of interest or penalty or compensation and enforcement of order, etc)

These sections deal with the Establishment and incorporation of Real Estate Regulatory Authority, Composition of Authority. Qualifications of Chairperson and Members of Authority. Term of office of Chairperson and Members. Salary and allowances payable to Chairperson and Members. Administrative powers of Chairperson. Removal of Chairperson and Members from office in certain circumstances. Restrictions on Chairperson or Members on employment after cessation of office

CHAPTER VI Central Advisory Council

Section 41 to 42

These sections deal with the Establishment of Central Advisory Council. Functions of Central Advisory Council.

CHAPTER VII The Real Estate Appellate Tribunal

Section 43 to 58

Establishment of Real Estate Appellate Tribunal.

CHAPTER VIII Offences, Penalties & Adjudication

Section 71 to 72

These sections deal with Power to adjudicate. Factors to be taken into account by the adjudicating officer.

CHAPTER IX Section 73 to 78 Finance, Accounts, Audits And Reports

CHAPTER X Section 81 to 92 Miscellaneous

Not Notified Sections CHAPTER II Registration Of Real Estate Project And Registration Of Real Estate Agents

Section 3 to 10

Operational Part of Act This sections will be notified once regulation and rules are notified and with in the outer limit as given to make Regulation and Rules and Establishment of RERA by the Act

CHAPTER III Functions And Duties Of Promoter

Section 11 to 18

CHAPTER IV Rights And Duties Of Allottee

Section 19

CHAPTER VIII Offences, Penalties And Adjudication

Section 59 to 70

CHAPTER X Section 79 to 80

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Analysis and Way Forward

1. Countdown for making operational rules, setting up Regulatory Authorities,

Appellate Tribunals begins

2. Rules under the Act have to be formulated by the Central and State Governments

within a maximum period of six months i.e by October 31, 2016 under Section 84

of the Act. Ministry of HUPA would make Rules for Union Territories without

legislatures while the Ministry of Urban Development would do so for Delhi.

3. The appropriate Government shall, within a period of one year from the date of

coming into force of this Act, by notification establish an authority to be known as

the Real Estate Regulatory Authority to exercise the powers conferred on it and to

perform the functions assigned to it under this Act (Section 20)

4. Regulatory Authorities, upon their constitution get three months’ time to

formulate regulations concerning their day to day functioning under Section 85 of

the Act.

5. Section 43 of the Act, Real Estate Appellate Tribunals shall be formed within a

maximum period of one year i.e by April 30,2017

6. Real Restate Regulatory Authority ( RERA )- Case of Maharashtra :After 1st May 2016 – Section 81 read with Section 82 ( C ) Real Estate Regulatory Act empowers appropriate Government to delegate powers of RERA to any authority if circumstances exist which render it necessary in the public interest so to do. The MHUPA has brought in to force section 81 to 92 .As the government of Maharashtra may establish Real Restate Regulatory Authority ( RERA )or delegate its power to somebody. On account of present controversy over Maple Groups misleading advertisements under Pradhanmantri awas Yojana ( PMAY), it was alleged that presence of RERA and timely intervention would have made significant difference, However, now with notification dated 27th April 2016 hurdles in appointment of RERA or delegating it’s powers to somebody have been removed

Real estate act 2016

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Transcript of Real estate act 2016