With the Real Estate (Regulation and Development) Act, 2016 (RERA) coming into effect on 1 May 2017, every state is required to establish a Regulatory Authority by that same date, which will have another three months to frame the rules and regulations. Meanwhile, builders of 'nearly completed' projects are busy in obtaining the Occupancy Certificate (OC) from their respective authorities. Many of these developers are doing so as they do not wish their on-going project to fall under the purview of the Act.
While RERA is not applicable to those projects that have the OC as on the date of notification, the projects without OC after the commencement of the Act will be subject to RERA regulations. This means, if a developer fails to obtain the OC from the local authorities, before May 1, 2017, they will have to get the under-construction projects registered with the regulatory authority before July 31, 2017.
Builders, therefore, have few days to procure the OC and escape the mandatory registration clause. However, builders will have only three months to complete unfinished work until the state regulatory authority frames the rules and regulations by July 31, 2017. The overall scenario is beneficial for the existing homebuyers who have invested in these project and are expecting on-time delivery.