ACHHE DIN! - RERA in sight, builders cleaning up their act
Developers in Noida, Greater Noida, and Yamuna Expressway are working non stop to complete their housing projects and get occupation certificate from the respective development authorities before the Real Estate (Regulation and Development) Act, 2016, is implemented in Uttar Pradesh from May 1, this year.
This entails all real estate activity would come under the scope of the Real Estate Regulatory Authority (RERA), established under the ambit of the real estate act. The penalty clause in RERA, as notified in Uttar Pradesh, would force developers to pay interest for the delayed period at the base rate for a home loan given by the State Bank of India, presently at 8%.
This is a good news for homebuyers who have been waiting for a long time to take possession of their houses. All the completed projects that receive occupation certificate (OC) before May 1 will not come under RERA, which deals with defaulting developers alone.
Many of the projects in these three areas have been running late due to several extraneous factors like adverse court orders against the development authorities, direction of the National Green Tribunal (NGT) to stop construction work, farmers' agitation, among others.
When RERA is enforced upon these projects, it is likely that they will run into litigation.Thus, many developers are trying hard to complete their stalled projects and secure OC to avoid this situation; in other cases where the delay has been excessive, developers are trying to convince their customers to allow them to rope in a partner for joint development.
Many of the developers like Gaursons, Supertech, Ajnara, Mahagun, Paramount, Antriksh India, Nirala, and Eros have either secured OC or are applying to get one by May 1.
Manoj Gaur, CMD of Gaursons, said that a number of their projects, like Gaur Saundaryam, are before time while all their other projects are on time. Supertech has worked hard to bring all its project on schedule in the last one year, said R K Arora, CMD of the firm.In fact, the group is confident that it will get part completion of its iconic project, Supernova, by May 1. The group has already secured OC for Eco Village I, II, and III, Eco Citi, E Square and Cape Town.
“All of our projects are now on time and those that were delayed due to reasons beyond our control are already complete and we have either received OC or are in the process of getting one,“ Arora said.
Deepak Kapoor, president of Credai-Western UP and director of Gulshan Homz, said that the rules under RERA are fair and that developers have already started following them, as this would pave way for better demand and supply in the sector.
“Keeping in mind the interests of our buyers, we have already secured OC for two of our projects, Gulshan Vivante and Gulshan Ikebana, both on Noida Expressway. Work is on in full swing at Gulshan Bellina in Greater Noida West and we expect to complete it in the stipulated time frame,“ Kapoor said. Ashok Gupta, CMD of Ajnara India Ltd, says: “Developers have been gearing up to become RERA-compliant ever since it became an act in Parliament, in 2016. Our projects, Ajnara Ambrosia in Noida and Ajnara Homes in Greater Noida West, are nearing completion and we will apply for OC soon.“ Rakesh Yadav, CMD of Antriksh, said that RERA is a good thing to have happened to the sector. “All our projects are complete and we have either secured OC or have applied for one for each of them,“ Yadav said.
Dhiraj Jain, director of Mahagun Group, said: “We are close to offering possession in the first phase of My Woods in Greater Noida West. We have already given possession in Mahagun Moderne in the recent past--we are RERA compliant!“ Ashwani Prakash, executive director of Paramount Group, said: “We have secured OC for most of our current projects. Right now, we are working to complete Paramount Emotions in Greater Noida West by the end of this year, which is on schedule.We will get partial OC for the project.“
Avneesh Sood, director of Eros Group, said that the company has obtained completion certificate for Eros Sampoornam in Greater Noida West recently, where it has offered possession in 1,768 units in the first phase of the project.
With the coming of RERA from May 1, the real estate scenario in the country will be become transparent and predictable, coupled with timely delivery. Regulatory control will help it attract more foreign and domestic investments and lead to better liquidity in the market, R K Arora said. Avneesh Sood says that with RERA in place, the image of the sector and that of developers will improve radically.Most developers who are genuinely into real estate are already following the regulations under RERA, Sood says.