Bringing much needed relief to the realty sector, the Real Estate (Regulation and Development) Act, 2016 will come into force on May 1, 2016, an official statement said on Saturday.
This will set in motion the process of making necessary operational rules and creation of institutional infrastructure for protecting the interests of consumers. A proposal for a law for the sector was first mooted in January 2009 at the National Conference of Housing Ministers of States and Union Territories.
The Ministry of Housing & Urban Poverty Alleviation has notified 69 of the total 92 sections of the Act on Wednesday this week, the statement added.
Rules under the Act have to be formulated by the Centre and State Governments by October 31, 2016 under Section 84 of the Act.
Real Estate Regulatory Authorities (RERA), with which all real estate projects have to be registered, and Appellate Tribunals for adjudication of disputes have to be set up within one year under Section 20 of the Act, the statement added.
The Regulatory Authorities, upon their constitution, will get three months to formulate regulations concerning their day to day functioning. Similarly, Real Estate Appellate Tribunals shall be formed within a maximum period of one year i.e. by April 30, 2017.