In a relief for developers, the Chennai Metropolitan Development Authority (CMDA) has exempted 266 ongoing housing projects from the purview of the Real Estate (Regulation and Development) Act, 2016.
The planning authority has released the list of ongoing projects for which applications were submitted seeking completion certificates till June 21. The applications for completion certificates ideally keep the projects away from the purview of the central act that aims to bring transparency in the realty sector.
However, the fact that nearly 50% of the submissions were made on a single day has raised eyebrows. One application was filed on a Sunday, as per the data uploaded in the CMDA’s official portal.
The list released by the planning authority states that a total of 266 applications requesting completion certificate were filed between January and June this year. Of these, the highest number of applications, numbering around 130, was filed on May 31, 2017. It was followed by June 2, when 47 applications seeking completion certificate were registered. The Tamil Nadu Real Estate (Regulation and Development) Rules, 2017, notified by the state government on June 22, exempts projects in the Chennai Metropolitan Area for which application seeking completion certificate were filed with the CMDA prior to the notification date. Following this, the planning authority will issue completion certificate for those projects in compliance with the prescribed norms. Projects, whose completion certificate is rejected on grounds of violations, are bound to register with the Tamil Nadu Real Estate Regulatory Authority (TNRERA).
According to sources with the construction sector, these projects can receive completion certificate after mandatory inspections by officials. “Now, most of these ongoing projects have virtually found an escape route from the real estate act because there is no time frame prescribed by the CMDA to issue the completion certificate within a specific period unlike planning permission. In the event of any violations during inspections, the window for giving a grace period to rectify it was still available,” a veteran in the construction industry, who preferred anonymity, said.
On the other hand, developers body the Confederation of Real Estate Developers’ Associations of India (CREDAI) has observed that the sudden spurt in number of applications was in the light of anticipation that rules for the real estate act would be notified at any time in Tamil Nadu, after the central act came into force across the country on May 1, 2017. “The rush during May could be due to anticipation that the act will come into effect soon in the state,” CREDAI Chennai president Suresh Krishn said.
This article was originally published in the Accommodation Times.