RERA Should Have Passed Earlier to Control Malpractices by Builders: Narendra Modi

RERA or the Real Estate Regulation & Development Act should have been passed earlier before it was passed actually to control builders’ malpractices. Prime Minister Narendra Modi given a statement that it was his government which felt the grievances of homeowners who were living at the mercy of uncontrollable builders, after the stay from Supreme Court on NCLT order which suspended the directors of Unitech, which is a leading real estate developer, and enabled government to assign its nominees in replacement to them.

While addressing FICCI’s 90 th AGM, Modi added that it was the sensitivity of his government which detected the plight of homeowners who were left at the mercy of dishonest builders. This way, the government brought RERA Act, 2016 passed by both Parliament houses last year. Modi asked, “When RERA could have brought so earlier, why no action was taken?” He was wondering whether, being an industry leader, FICCI brought builders’ issue for not fulfilling its promises from the notice of UPA government. In RERA Act, registration is mandatory for builders to sell properties and law also controls the projects if certification of completion has not been issued. Without this certification, no real estate project can be declared complete.

The bench of an apex court having Justices D.Y. Chandrachud and A.M. Khanwilkar and Chief Justice Dipak Mishra has put an stay on the NCLT order on December 8 and suspended all Unitech directors. Hence, its nominee directors would be appointed by the government later. The panel of an apex court including Justices D.Y. Chandrachud and A.M. Khanwilkar, and Dipak Mishra, Chief Justice, put the stay on December 8 order of NCLT, and suspended all Unitech directors and its nominee directors would be appointed by the government. Total 8 directors have been suspended by the principal bench of NCLT and they have been restrained from working.