Rajasthan RERA has begun issuing exemption certificates to builders.

JAIPUR: The Rajasthan Real Estate Regulatory Authority (RERA) has begun granting exemption certificates to developers for completed real estate projects prior to sale or marketing.

RERA-Raj decided that developers who completed their real estate projects and obtained a completion certificate from any relevant authority, such as development authority, municipal corporation, and urban improvement trust (UIT), prior to making any sale, marketing, or booking in that project, would be exempt from RERA registration.

Developers who fall into this category can now approach Raj-RERA for an exemption, and the authority will issue deductible certificates after paying a standard fee.

“The move will the goal of managing of the property project out of the builder’s funds and reduce the dependency on customers for funds,” said Mitesh Rathore, an advocate familiar with the development. It will also shorten the project’s completion time.”

Previously, in July, the RERA approved a show-cause notice to three developers under Section 59 provided in Section 3 of the RERA Act, 2016 for advertising their real estate projects without prior registration.

However, it was contended that the promoters did not violate Section 3 or any other requirement of the Act because they did not market or sell any units in the contested project before they were finished.

“The authority was formed to carry out the mandate of the Act and enforce the responsibilities of promoters towards beneficiaries, primarily of accomplishing the project within the given promised, but when a project is completed, it is no longer under the authority” and booking and sale is made only thereafter, there is nothing for the authority to regulate,” Rathore added. Following the decision, the authority will put in place an online registration module.