Parliamentary Panel to Advocate Central Vetting of RERA Bye-Laws: Housing Minister Manohar Lal Khattar

New Delhi: In a significant move to strengthen the Real Estate Regulatory Authority (RERA) framework, Housing & Urban Affairs Minister Manohar Lal Khattar has announced that a consultative committee of members of Parliament will urge state governments to have RERA bye-laws vetted by central teams before making any announcements. This comes days after the Supreme Court questioned the effectiveness of RERA authorities across India.

Khattar emphasized that while the RERA Act was passed by the central government, the bye-laws are formulated by state governments. This has led to a lack of uniformity and, in some cases, the dilution of the Act's provisions. Homebuyers' activists have been vocal about state governments making policies that contradict the RERA Act, which was designed to protect homebuyers and ensure transparency in the real estate sector.

“We can forward the suggestion and advocate for it, but the state government must act. RERA bye-laws are made by states, and whatever suits them, they make it part of it. Implementation must happen according to the byelaws,” Khattar said while speaking at the NAREDCO Conclave on Saturday.

The minister highlighted the significant changes in the real estate sector post-RERA. “The real estate sector can be divided between pre-RERA and post-RERA, and things have gotten better,” he noted. However, challenges remain, as builders continue to attempt to dilute the RERA Act in various ways.

Gopal Arora, an activist for homebuyers, pointed out that in some cases, state government policies are directly contradicting the RERA Act. “Builders are trying everything to dilute the RERA. In some cases, state government policies are contradicting RERA itself,” Arora said.

To address the funding gaps in the affordable housing segment, the central housing & urban affairs ministry is considering setting up charitable institutions to fund housing, particularly in the affordable segment. Banks and other financial entities often hesitate to fund housing units in this segment due to perceived risks.

Khattar also indicated the possibility of establishing a committed fund to finance stalled housing projects from the pre-RERA period. This fund would aim to facilitate a win-win settlement for both promoters and buyers. “A committed fund could be set up to finance the stalled housing projects of the pre-RERA period as per the broader suggestions of the industry, so that both promoters and buyers can reach a win-win settlement,” he added.

This proactive approach by the central government aims to ensure that the RERA Act is implemented uniformly and effectively across all states, thereby protecting the interests of homebuyers and promoting transparency and accountability in the real estate sector.