The Indian Government, on November 23, finalized the rules in a step towards making the Real Estate (Regulation and Development) Act operational for the national capital, Delhi. The new laws will aim to protect new homebuyers from corrupt developers, fly-by-night operators as well as protect the interests of people who have already purchased homes in ongoing projects.
The new rules also stipulate the formation of a regulatory authority to undertake third-party quality audit of real estate projects, to ensure quality of construction.
In the interim, Delhi Development Authority (DDA) vice-chairman Udai Pratap Singh, has been designated as the real estate regulator. Under his purview will be to undertake initial actions like setting up a website and setting up institutional mechanisms until a full-fledged body is established.
As of now, only some of the provisions will become operational. The full Act is expected to come into effect from May 1, 2017 when the regulatory authority is set up in every state and Union Territory.
Union Urban Development Minister M Venkaiah Naidu approved these rules. These rules were formulated after consultations with the Delhi government, New Delhi Municipal Council, three municipal corporations of Delhi, the Delhi Development Authority and other stakeholders.