In a move aimed at benefiting buyers, the Bengal government has significantly reduced the threshold for residential developments to fall under the purview of the Real Estate Regulatory Authority (RERA). As a result, numerous small-sized projects now fall within the jurisdiction of this consumer-friendly law.
A notification from the state housing department stated that projects situated on a plot of land not exceeding 200 square meters (approximately three cottages) and comprising six apartments are now exempted from the mandatory registration process under the Real Estate (Regulation & Development) Act, 2016.
Earlier, projects with a size of up to 500 square meters (about 7.5 cottages) and consisting of a maximum of 8 apartments were exempted from the requirement of registering with the RERA. The primary objective of the RERA is to safeguard buyers from fraudulent activities within the real estate industry.
The recent rule change, effective immediately, will result in the inclusion of a significant majority of projects undertaken in the unorganized sector under the purview of the Act. These projects, which have frequently been found lacking in construction quality and transparent dealings with buyers, will now be regulated and governed by the provisions of the Act.
The government's decision was met with understandable satisfaction by reputable builders who typically undertake large projects falling under RERA. They welcomed the move as it further reinforced their preference for adhering to the regulations and safeguards provided by the Act.
Sushil Mohta, president of Credai, West Bengal, expressed his appreciation for the decision, stating, "This is a positive development that benefits the customers. We have witnessed instances where small-scale developers engage in fraudulent practices, tarnishing the reputation of the entire industry while seeking quick profits. The implementation of these measures will help address such concerns.
Under the new regulations, projects falling within the scope of RERA are required to obtain certification from the authority before their launch. These projects must demonstrate compliance with the various provisions outlined in the Act in order to ensure adherence to the prescribed guidelines.
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