Real Estate Act, Comes Into ‘Full’ Force From 1st May, 2017 [Read Notification]

These provisions relate to functions and duties of promoters, rights and duties of allottees, prior registration of real estate projects with the Real Estate Regulatory Authority, recovery of interest on penalties, enforcement of orders, offences, penalties and adjudication, taking cognizance of offences etc . 

The Union Ministry Of Housing And Urban Poverty Alleviation issued a notification on Wednesday, announcing that sections 3-19, 40, 59-70, 79 and 80 of the Real Estate (Regulation and Development) Act, 2016, shall come into force on May 1, 2017.

Sections 3 to 19 deal with registration of real estate project and registration of real estate agents, functions and duties of promoter and allottee.

Every real estate project will have to be mandatorily registered with the Real Estate Regulatory Authority.

Section 40 states that interest or penalty or compensation imposed on a promoter or an allottee or a real estate agent by the adjudicating officer or the Regulatory Authority or the appellate authority can be recovered from such promoter or allottee or real estate agent as arrears of land revenue.

Sections 59 and 70 of the Act deal with offences and penalties. Contravention of the orders or directions of the authority by promoters, real estate agents have been made punishable with fine, and in some cases, with punishment also.

Sections 79 and 80 bar jurisdiction of civil courts in the matters covered under the Act.

The court shall not take cognizance of any offence punishable under this Act or the rules or regulations made thereunder, except on a complaint in writing made by the authority.

The Real Estate (Regulation and Development) Act, 2016, had come into force on May 1, 2016.

Only 69 sections of the Real Estate (Regulation and Development) Act, 2016, were notified at that time.

Read the Notification here.