ROAD MAP - RERA a reality now: Task ahead


ROAD MAP - RERA a reality now: Task ahead



 

 
 
Bringing much needed relief to the realty sector, the Real Es tate (Regulation and Development) Act, 2016 came into force on May 1. This will set in motion the process of making necessary operational rules and creation of institutional infrastructure for protecting the interests of consumers. Real Estate Regulatory Authorities (RERA), with which all real estate projects have to be registered, and Appellate Tribunals for adjudication of disputes, have to be set up within one year under Section 20 of the Act.

But the real challenge lies ahead for every state is the effective implementation of the Act in their respective states. Each state government has to frame a time for granting approvals for development of real estate project and single window clearance will be upward step towards effective implementation of the act.

Experts and developers are of the view that the Act will streamline the realty sector and will go a long way in ensuring accountability and transparency.

Sanjay Dutt, managing director, India, Cushman & Wakefield, says, “While the government will place initial blocks for a regulator in the Indian real estate sector, it is imperative that all cities adopt a single-window clearance system for construction projects in order to build developer confidence.“

Parveen Jain, president, NAREDCO, says that after the Act came into force the builders and developers have challenges ahead to do their businesses and ensuring homebuyers getting their homes on time. “The new law en joins upon all developers and builders a financial discipline so that they cannot transfer funds meant for one proj ect for another. This will ensure suffi cient funds for the projects to get completed and timely delivery of flats to the home buyers.“

He further says that the onus of success of RERA depends not only on builders or consumers but also the Central and State authorities.

The new Act will disallow the common practice among many developers of pre-launching projects without getting requisite approvals from the local authorities, and it will make mandatory project registration with the regulator.

Anuj Puri, chairman and country head, JLL India, says, “RERA will help make the real estate sector more mature, and more attractive for consumers. Developers will also have to disclose approval status, project layout and timeframe for completion to the regulator as well as customers.“

Manoj Gaur, MD, Gaursons India Ltd and president, CREDAI NCR says that the Act should strike a balance which is agreed upon by both buyers as well as builders.

“It is also key to fix the accountability of approving author ities. Lot of government's processes involved in getting permission prove to be the reason in delaying of the possession.“

Prashant Tiwari, chairman, Prateek Group, points out, “The Act would promote fair play in the realty market with a better working environment for the entire sector.Buyer's sentiments would improve significantly and industry will also grow with full confidence.“

Gaurav Gupta, GS, CREDAI, RNE is of the view that the Act has not taken into account the costs of project clearances. “It is also important that both the central and state governments jointly address the working of this sector to make it less bureaucratic and fairer.“

Yash Gupta, SMD and country head, Hines India, says, “Not only does the Act benefit buyers but also addresses to the problems faced by developers in getting sanctions and approvals for the projects in a timely manner. It is a very welcome step towards paving the way for a more transparent eco-system.“

Vineet Relia, managing director, SARE Homes, notes, “It (Act) is expected to be a major catalyst in turning the tide and restoring confidence among buyers to return to the market. However, there is still more clarity needed to be brought in on how the government plans to take the existing projects under the ambit of the bill.“

Rajesh K Gouri, vice-president, Homestead maintains, “The past few years have been tough for the real estate industry, the buyers and investors have suffered and so have the builders in the slowdown. With the formation of a regulatory body the overall situation of the industry will get better with time.“

Amarjit Bakshi, founder & MD, Central Park says, “The Act will help change the current sentiment among homebuyers, boosting confidence among them. The new Act seeks to make even small developers accountable, which was not the case earlier.“

Sam Chopra, founder and chairman, REMAX India states, “Though the move is in the right direction, we still feel that a lot of critical elements are missing like single window clearance.“

 

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