In a letter to all chief secretaries and lieutenant governors on Friday, MoHUA secretary Durga Shanker Mishra said the situation had become “grave“ because, in the absence of rules, regulatory authorities and appellate tribunals, transactions in the real estate sector would get adversely affected from July 31.

Two sets of builders have challenged the provision for mandatory registration of ongoing projects in two high courts.  The builders have pleaded that they should not be made to register their projects till the court passes a final order.On July 11, Nagpur bench of Bombay High Court had sent a notice to the Centre to respond. The government has maintained that the main reason for bringing the new law was a huge number of delayed projects.