The Real Estate (Regulation and Development) Act 2016, popularly known as RERA, has started a revolution in India’s realty sector. Manmohan Garg, Delhi based a leading real estate tycoon, believes that it is a robust move, which secures great hope for sustainable development in the real estate segment.
With the implementation of the RERA Act, the government has asserted that realtors cannot issue advertisement without registering them first with the new regulator. It is believed that the declaration will further dampen the real estate market. As a matter of fact, the realty market has been suffering a slump since the past few years. There has been a stagnancy with no real appreciation in value of property or sales growth.
Manmohan Garg of Delhi emphasizes that the RERA Act was passed with the aim of establishing a mechanism to promote and regulate the real estate sector. A representation seeking clarity on advertisement and sale of the ongoing projects, has been submitted by NAREDCO to the Ministry of Housing and Urban Poverty Alleviation.
“Section 3 (1) of the Act prohibits advertisements for all projects (ongoing/future) without registration with the real estate regulator. This provision has come into effect from 1 May, 2017,” the ministry said, while responding to the NAREDCO’s letter.
Parveen Jain, the President of NAREDCO believes that the prohibition on advertisements and sale in the ongoing projects will have a major impact on realty segment.
As per the Act, Section 3 (1) specifies that “no promoter shall advertise, market, book, sell or offer for sale, or invite persons to purchase in any manner any plot, apartment or building… in any real estate project or part of it, in any planning area, without registering the real estate project with the Real Estate Regulatory Authority established under this Act.”
“In case of the ongoing projects, the section holds that the promoter is required to make an application to the authority to register the project within three months from the date of commencement of this Act,” informs Manmohan Garg.