Real Estate Regulatory Act (RERA) and its Rules in Telangana

RERA Act in Telangana, Hyderabad
09:57 AM 24 Apr 2018

This is the first of the simplified series of blogs about RERA, the ground-breaking legislation for the Indian real estate sector. In this blog, we will talk about the milestone dates that saw the emergence of RERA as a regulatory mechanism.

Until RERA (The Real Estate Regulation Act, 2016) came into force, the real estate sector was largely unregulated where the grievances of the buyer and seller were addressed in the consumer courts.

Lack of regulation made investing in real estate unpopular among people. The real estate industry needed a regulator who can frame rules, regulate transactions, and bring in more transparency to the sector. RERA is the answer to all the needs of buyers and sellers.

To summarise, the need for regulating the real estate sector are:

  1. To standardise all real estate transactions.
  2. To bring in more transparency.
  3. To set up a grievance redressal forum.
  4. To protect the interests of consumers, builders, intermediaries, and so on.

Let's look at the brief history of how RERA was enacted.

In January 2009, a law to regulate the real estate sector was proposed by the National Conference of Ministers of Housing, Urban Development and Municipal Affairs of State and Union Territories (UT).

The Real Estate Bill, 2013 was first introduced in Rajya Sabha in June 2013. After revision based on changes recommended by the Standing Committee, the Real Estate Bill, 2015 was passed by Rajya Sabha, Lok Sabha, and approved by the President of India in March 2016.

So, why are we writing about RERA? RERA is one of the most important regulations in the real estate sector, and we are writing a blog series simplifying RERA.

What is RERA?

RERA is The Real Estate (Regulation and Development) Act, 2016.

What is the aim of RERA?

RERA aims to regulate and promote the real estate sector by

  1. Ensuring sale of the plot, apartment or building in an efficient and transparent manner.
  2. Protect the interest of consumers in the real estate sector.
  3. Establish an adjudicating mechanism for speedy dispute redressal.
  4. Establish Appellate Tribunals to hear appeals.

Why are the states framing their own RERA rules?

According to RERA, each State and Union Territory has its own Regulatory Authority to frame rules and regulations.

This means that RERA is an umbrella Act that gives broad guidelines under which every State can frame rules. These rules are published in the respective State gazettes.

According to RERA, the respective State Governments had to formulate rules and regulations by 1 May 2017.

Telangana RERA:

The Telangana Government notified rules under the RERA on 31 July 2017. The rules come into force from the date of publication in the Telangana Gazette on 4 August 2017.

The rules notified by the Telangana Government is called the Telangana State Real Estate (Regulation and Development) Rules, 2017.

The Telangana State Real Estate (Regulation and Development) Rules, 2017 apply to all real estate projects that received building permits on or after 1 January 2017 from:

  • Urban Development Authority (UDA)
  • Director of Town and Country Planning (DTCP)
  • Municipal Corporations
  • Municipalities
  • Nagar Panchayats
  • Telangana State Industrial Infrastructure Corporation (TSIIC)

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In the next few blogs, we will talk about the definitions of RERA. We will explain all the terms in simple language.