The real estate business has seen a huge growth in the last couple of decades. This is the reason people have preferred to invest in real estate business . In Jammu & Kashmir also we have seen people buying land and plots with the hope that it will give them more returns. In fact there has been a downfall in the real estate business also during the last five to six years in some Indian cities especially Delhi and NCR but still this sector is performing better. The property buyers however have been concerned about lack of accountability in this sector. There have been several instances wherein the builders delayed in giving possession to the customers and when these cases rose the Govt decided to streamline the sector by protecting rights of property buyers and to boost the real estate investments as well.
The legislative process to enact a law began during Congress led UPA Government in 2013. On 14th August 2013 the Real Estate (Regulation and Development) Bill was introduced in Rajya Sabha. On 9th September 2013 this bill was referred to the Standing Committee on Urban Development. Lots of deliberations took place between different stakeholders in October and November 2013 which included Govt , representatives from real estate sector , NGOs etc. In Feb 2014 the Standing Committee and Urban Development Ministry submitted its report to the Parliament. On 7th April 2015 the Union Cabinet headed by Prime Minister Narendra Modi gave approval for making new amendments in this bill which was introduced in Rajya Sabha on 6th May 2015 and referred to the standing committee with 21 Rajya Sabha members. The committee made some changes and 20 amendments were introduced and finally the bill was passed by Rajya Sabha on 10th March 2016. The Lok Sabha also passed this bill on March 15th and on March 25th 2016 President of India gave his assent to the bill. From May 1st 2016 The Real Estate Regulatory and Development Act -RERA came into force across the country except Jammu & Kashmir. The law was enacted in J&K around December 2018 during the Governors rule. This was a state law known as Jammu & Kashmir Real Estate (Regulation and Development) Act 2018. The Ministry of Home Affairs in October 2020 extended the central law Real Estate (Regulatory & Development ) Act (RERA) to the Union Territory of Jammu and Kashmir through a Gazette notification . The order issued on Gazette of India, under provisions of the Union Territory (UT) of Jammu & Kashmir (J&K) Reorganisation (Adaptation of Central Laws), said:
“The Real Estate (Regulation and Development) Act (RERA), 2016 will now be applicable in the UT and Section 86- In sub-section (2), for -the Union territory Government of Puducherry occurring at both the places, substitute,-the Union Territory Government of Puducherry or the Union territory Government of Jammu and Kashmir”.
Constitution of RERA in J&K
After 4 months of extending the central law the J&K Government in February 2021 initiated the process for constitution of the Real Estate Regulatory Authority (RERA) under the provisions of the Real Estate (Regulation and Development) Act, 2016.
The J&K Housing and Urban Development Department issued an open advertisement inviting applications from eligible/desirable persons for selection to the post of Chairperson and Member(s) of the RERA. On August 1st 2022 after almost 2 years of extension of this central law (RERA) to the UT of J&K, a Retired IAS officer and former Chief Secretary of Goa Mr Parimal Rai was appointed as the first chairperson of the Jammu and Kashmir Real Estate Regulatory Authority (RERA) on August 1, 2022. But within a few months Mr Rai resigned from this post due to unknown reasons
“In exercise of the powers conferred by Section 24 of the Real Estate Regulation and Development) Act, 2016, the Government of Union Territory of Jammu and Kashmir hereby accepts the resignation of Parimal Rai, IAS (retired), from the post of Chairperson Jammu and Kashmir Real Estate Regulatory Authority (RERA), w.e.f., August 12, 2022,” read the order issued by Principal Secretary J&K Housing and Urban Development Department J&K Government. Since the enactment of this law there is no such authority to regulate real estate business in J&K ?
Why we need RERA ?
As explained above the Real Estate Regulation and Development Act (RERA) was enacted by the Parliament to regulate the real estate industry in India and safeguard homebuyers’ rights. Before this law was enacted the property buyers especially flat or homebuyers in India frequently complained that the real estate sector was tilted in the favour of the builders and developers. That was the main reason the Govt of India came up with RERA to make real estate transactions between the homebuyers , customers and real estate dealers more transparent and equitable. The preamble of this act says that this act is to establish the Real Estate Regulatory Authority for regulation and promotion of the real estate sector and to ensure sale of plot, apartment or building, as the case may be, or sale of real estate project, in an efficient and transparent manner. It further reads :
“ To protect the interest of consumers in the real estate sector and to establish an adjudicating mechanism for speedy dispute redressal and also to establish the Appellate Tribunal to hear appeals from the decisions, directions or orders of the Real Estate Regulatory Authority and the adjudicating officer and for matters connected therewith or incidental thereto “
The main objectives of the Real Estate (Regulation and Development) Act 2016 are listed as under:
To set up a Real Estate Regulatory Authority -RERA in every state and union territory of India which will protect the rights and interests of the homebuyers in India
To maintain transparency in real estate transactions & to ensure the accurate flow of information between developers and homebuyers.
To impose greater responsibilities on builders as well as buyers and to uplift the credibility of the real estate sector in India and attract investors
Conclusion
At a time when the Government wants more investments in the real estate sector in J&K it is a matter of concern that the Real Estate Regulatory Authority -RERA is yet to be constituted under the Real Estate Regulation and Development Act 2016 . Builders in J&K are not following the Real Estate law as they make massive constructions without anyone to take action. Land brokers are misleading and cheating people and there is none to take them to task and in fact they work in league with some corrupt police, municipality and revenue department officials. Like other states many customers are not given possession in time by the builders and there is nobody to hear their grievances. Keeping these issues into consideration the Govt of J&K must immediately constitute J&K Real Estate Regulatory Authority -RERA so that this sector is streamlined
Dr Raja Muzaffar Bhat is an Acumen Fellow. He is Founder and Chairman Jammu & Kashmir RTI Movement.