Once a real estate company gets the registration number, it is free to market its projects while staying in compliance with the new RERA rules.
The website for the Uttar Pradesh Real Estate (Regulatory and Development) Act will be launched on Wednesday by chief minister Yogi Aditya Nath. The registrations will happen through online applications and will be done under the state RERA rules that were passed in December 2016 by the previous government led by Akhilesh Yadav.
RERA will bring accountability and transparency into the real estate sector and is expected to renew confidence among buyers who are sceptical about quality of construction and timely completion of projects, particularly in Noida. RERA has clauses for heavy penalties if a developer deviates from promises made to buyers while selling a property.
Under the state’s RERA rules, ongoing projects that have filed for occupancy certificates will not come under the ambit of the new law. Developers say this will help both them and buyers as an ongoing project that files for registration under RERA will have to specify a new date of completion.
Vice-president of real estate body Credai Manoj Gaur, who is also promoter-director of Gaursons, welcomed the state’s move to grant immediate registration numbers. The state will now trust a real estate company and issue a registration number based on documents it files online. These documents will be in the public domain and open to scrutiny. If any discrepancy is found, the company will face heavy penalties.
RK Arora, CMD of Supertech that has a number of ongoing projects in NCR, said his company had already filed applications through physical forms for several projects. “We will scan all the documents of each ongoing project and upload them on Wednesday,” he said.
The central RERA came into effect on May 1 and stipulated that no project could be marketed without registration. But developers faced problems because state governments were still not ready to implement RERA and notify their own rules on the basis of the central law. Subsequently, the Centre had asked all states to have their RERA rules notified by July 31.