Delay In RERA Formation Hits Bengal Housing

A delay in the formation of a regulatory authority has affected the launch of real estate projects in Bengal. Developers have lost out on new business opportunities while aggrieved home buyers were left in the lurch because of the delay. Six months have passed since May 4 when the Supreme Court had struck down a Bengal specific act to govern real estate activities in the state as ‘unconstitutional’, prompting the Mamata Banerjee-government to come up with new rules following the central model act. The housing department had notified rules on July 26, which laid down the legal framework for setting up the Real Estate Regulatory Authority. However, it is yet to become functional for the want of a chairman and members. More than 100 projects are yet to see the light of the day for want of registration by RERA, which is a must before builders can solicit buyers for new projects. Likewise, several hundred complaints filed by harassed homebuyers are also awaiting adjudication of the authority. The vacuum in the regulatory authority comes at a time  the Mamata Banerjee government announced a relief in the rate of stamp duty and the circle rate to stimulate demand in the real estate sector and encourage buyers. The formation of the regulatory authority involves a well laid-down search process. The chairperson and other members of the authority are to be appointed by the state government on the recommendations of a selection committee consisting of the chief justice of the high court or his nominee, the housing secretary and the law secretary or their nominees.