Bengaluru: Real Estate (Regulation and Development) Act (RERA), which was one of the ambitious legislation proposed by the previous United Progressive Alliance (UPA) government is finally seeing the light of the day. After a delay of about four years, especially by present National Democratic Alliance (NDA) government, this act was implemented on Monday May 1.

But the irony is that only 13 states are implementing the act and even though Karnataka is ruled by Congress party, state government is yet to notify the final rules, thanks to the real estate lobby.

RERA is one of the ambitious legislations proposed by the previous UPA government in line with Right to Education act (RTE), Right to Information act (RTI), NEET for medical and dental admissions. It was first proposed in 2013. But, as real estate lobby was firmly against this bill, which makes way for total overhaul of their business module, successfully ensured that act is not implemented at the earliest.

But under huge public pressure, finally central government has implemented the act. Highlight of the act includes keeping 70% of a project expenditure in a separate bank account through cheque, completion of the project on time, mandatory registration of all the projects with a special authority, house/ apartment price based on carpet area and not super built-up area, setting up of Real Estate Regulatory Authority and Appellate Tribunal to resolve the disputes surrounding the housing projects.

In Karnataka, people need another two- three months to get the act implemented with various stakeholders failing to arrive to any consensus on the state specific rules. “Originally it was announced that by April 30 state will notify the new rules. But builders’ lobby is buying more time,” explained an officer who is close to the developments. “An IAS officer who was in-charge of finalising the rules was transferred abruptly as he was strict. This is causing delay” he added.

Timeline of the act

2013- Draft Bill

July 2015- Bill referred to select committee of cabinet.

December, 2015- approval by the union cabinet with 20 major amendments

March 2016- Parliament approval

May 1, 2017- Law comes into existence.