PANJIM: Almost seven months after the Central Real Estate (Regulation and Development) Act (RERA) came into effect, the Goa government has finally notified State specific RERA rules, wherein promoters, builders and real estate agents can escape punishment by paying a fine of five to twenty percent of the estimated cost of the project.
The Department of Urban Development on Tuesday notified the Real Estate (Regulation and Development) Act, 2016 (Central Act 16 of 2016), as per which promoters of ongoing projects have to get themselves registered, along with providing details of total number of plots sold or allotted, within three months from now.
Government has already notified rules for establishing the Real Estate Regulator Authority (RERA) to regulate the real estate business in Goa, empowering itself to appoint the chairperson and members of the authority.
The State has made use of the provision in the central act, which gives it powers to set conditions and compound an offence, to tweak the rules and prepare a draft that hurts the buyers.
As per Section 64 of RERA, if a promoter fails to comply with or breaks any of the orders, decisions or directions of the appellate tribunal, the promoter can escape by paying just 5 percent of the estimated cost, which could be extended to 10 percent.
In cases where the developers advertise or sell the projects without registering it, the rules provide a provision for compounding the offence by charging a fine of 5 percent of the estimated cost of the project that can be extended up to 20 percent.
Under the Rules, the promoter, builder and the real estate agents have to register themselves.
