In a major relief for home buyers who have been left in the lurch owing to delay in possession of housing project, the Indian government is likely to notify on Monday rules to implement the Real Estate (Regulation and Development) Act (RERA), which will make it mandatory for builders to pay 12% interest to home-buyers for any delay in handing over apartments, according to TOI report.
The rules will be first implemented in the union territories of Chandigarh, Andaman & Nicobar Islands, Daman and Diu, Dadra and Nagar Haveli and Lakshadweep. In Delhi, the rules will be implemented in a month's time, said a senior official of the urban development ministry.
States such UP, Maharashtra, Haryana, Gujarat, Punjab and Goa are likely to frame the rules soon. For poll-bound Uttar Pradesh, the rules will be rolled out shortly to avoid the model code of conduct.
With buyers losing confidence in the developers, the sector is facing an unprecedented slowdown. Developers say implementation of the rules will help restore confidence of buyers and help revive the real estate sector.
The rules also say projects without a completion certificate will have to register with the Real Estate Regulatory Authority to be set up in states/UTs within three months of the rules being notified. Builders will have to give information on completion date of a project, size of flats and promised facilities, state the draft rules.