The 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.
The notification of rules will pave the way for setting up of a regulator for the sector, a much-needed relief for home-buyers. RERA will go a long way in addressing the hardship that the existing home-buyers are facing due to delay in possession, which in some cases is up to 10 years or more. 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.
An official said the government has asked state governments to expedite the process to notify the rules and appoint regulators as outlined in the Act. He said a number of state governments are considering to accept the central legislation as the model Act.