HIRA and RERA Act under Ministry’s scrutiny for co-existence

Mumbai: Can two separate Acts of the same nature exist together? The question arises due to the co-existence of the RERA Act 2016 and the HIRA Act 2017. 

The Centre enacted the Real Estate (Regulation and Development) Act, 2016 (RERA). At the same time, the Housing and Industrial Regulation Act, 2017 (HIRA) was enacted by the West Bengal government. The Housing and Urban Affairs Ministry is examining whether both Acts can exist together.

What is the RERA Act of 2016?

RERA Act aims to safeguard homebuyer's rights while encouraging property investment. It became effective on May 1, 2016. 

Its several objectives include maintaining accountability to allotters and protecting their interests. Furthermore, it increases clarity and cuts down on fraud and delays.

What is the HIRA Act?

The West Bengal Housing Industry Regulation Act, or the West Bengal HIRA, is another regulatory act that oversees West Bengal's real estate transactions. 

This act is very similar to the RERA Act, which promotes controlled and transparent housing sector trade.

Major Difference between the Acts

Although similar, both acts differ in the definition of the Force Majeure Clause and Garage.

Force Majeure Clause

RERA limits the force majeure events to natural disasters like drought, floods, earthquakes, fires or any other natural calamity that will interfere with the development of real estate projects. 

On the other hand, the HIRA Act refers to natural disasters "as any other situations as may be prescribed."

Garage Area

RERA defines a garage as a three-sided covered area with a roof. It does not include uncovered parking spaces or open parking lots. 

However, HIRA suggests a parking lot is an area as prescribed and a garage sanctioned by the competent authority.

The question remains unanswered: Can two Acts of similar nature exist together?

The Ministry of Housing and Urban Affairs is examining the matter. 

The government had earlier constituted a sub-committee in the Central Advisory Council meeting to persuade the Bengal government to adopt RERA.

Experts further suggested that the state may decide to follow the model adopted by Bengal if it goes through and may result in making RERA redundant.

States like Maharashtra, Punjab, Madhya Pradesh, Haryana and Gujarat have initiated the process of setting up the regulator and authorities. Kerala and Telangana have notified their state rules under RERA but have not set up an authority. 

Also Read: How to Become a Real Estate Agent in India? RERA Registration and Guidelines