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West Bengal comes up with its own real estate laws, despite RERA

Dated on: Tuesday 5th June 2018

The Centre’s target to bring all new and ongoing real estate projects under Real Estate (Regulation and Development) Act (RERA) has received a setback as West Bengal government has notified its own law for the sector in the state which favours the developers.

There are two major dilutions of RERA in the new laws. The first is on unforeseen circumstances that prevent a builder from fulfilling his contract. RERA says the circumstances could be war, flood, drought, fire, cyclone, earthquake or any other calamity caused by nature where HIRA makes an addition to the clause “...or any other circumstances as may be prescribed.” The second deviation is on garages. While RERA requires a roof and walls on three sides, HIRA has removed the clause altogether and defined garage as any parking space sanctioned by the government authority.

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