The Real Estate Regulatory Authority (RERA) Rajasthan has started granting exemption certificates to builders for the real estate projects which are completed prior to making any sale or marketing.
The module of these certificate was rolled out after RERA-Raj decided that developers who have completed their real estate projects and procured completion certificate from any of the competent authority, including development authority, municipal corporation, and urban improvement trust (UIT) prior to making any sale, marketing or booking in that project, will be exempted from RERA registration.
The developers falling under the category can now approach the Raj-RERA to seek exemption and the authority will issue exemption certificates after charging a standard fee.
Mitesh Rathore, an advocate, who is familiar with the development, said, “The move will promote development of the real estate project out of the funds of the builder and reduce the dependency on the customers for funds. Also, it will reduce delay in completion of the project.”
Earlier, the RERA issued a show-cause notice to three developers in July under Section 59 read with Section 3 of the RERA Act, 2016 for having advertised their real estate projects without obtaining prior registration. However, it was argued that the promoters have not violated Section 3 or any other provision of the Act as neither marketed nor sold any unit in the impugned project before these were completed.
“The authority was constituted to discharge the mandate of the Act and regulate the duties of promoter towards the allottees, mainly of completing the project in promised time period, but once a project is completed and booking and sale is made only thereafter, there remains nothing for authority to regulate,” added Rathore. After the decision, the authority operationalise an online application module.