April 30 was the day RERA rules were supposed to be notified by all states. Only 13 states have done it so far. The rest, including Karnataka have not paid heed to the deadline. Except Uttar Pradesh, Gujarat, Madhya Pradesh, Maharashtra, Andhra Pradesh, Odisha, Bihar and the Union Territories, most have missed the deadline to notify rules under the Act.

The real estate Act would bring about a paradigm shift in the way the industry operates and improve the level of transparency and accountability of developers, it said. However, "for effective implementation of the provisions, the state governments had to frame rules governing these sections and set up state-level RERA and appellate tribunals.

"So far, only seven states have notified the required rules....The absence of a regulator or appropriate rules can result in a regulatory vacuum and dilution of the Acts provisions," ICRA Senior Vice President and Group Head, Corporate Ratings, K Ravichandran said in a statement. Karnataka is one among the states who has not yet notified the RERA rules. Reports claim that Karnataka will issue its rules by the end of the week.

The ICRA highlighted that since registration with the RERA has been made mandatory for any project to be marketed and sold, further delay in setting up regulatory infrastructure could impact real estate developers, especially in case of new project launches. All ongoing projects (which have not received occupancy certificate) are also required to apply for registration with the RERA within three months of Acts commencement. Customers may defer purchasing decision until a project is registered, putting pressure on the demand, ICRA said.

Previously, we had reported how to prevent any laxity in the RERA norms, Namma Bengaluru Foundation along with Fight for RERA – Karnataka Chapter had submitted a request letter to Kapil Mohan, IAS, Principal Secretary to the Government, Housing Department to make the rules of RERA more stringent.

Since the idea was mooted and a deadline set for implementation. The builder’s lobby in the state had been feeling jittery. They have running from pillar to post to secure ways and means to wriggle out of the straitjacket. In fact, various rounds of discussions were held between the government and builders.

There is still some confusion on the kind of projects that will be included under the RERA. Experts have warned that if ongoing projects are excluded in the rules then under-development projects will face the heat. Everyone will be looking at how they can follow the new rules for new projects while old projects could be put in limbo.

But if these current projects are excluded then consumers who are looking for more stringent rules regarding realty then will be disregarded.