RERA Era Begins in Indian Real Estate Sector

RERA

By Asit Manohar

With an aim to limit concerns of the real estate home buyers and bring transparency in the real estate sector, the government of India has introduced Real Estate Regulatory Authority (RERA) from May 1, 2017 which has been hailed by the India realtors. Realty traders said that it would help build an image of the sector and improve the business environment of the realty sector.

Manoj Gaur, Vice President CREDAI said, “I welcome this much awaited initiative of RERA, which should bring huge relief to homebuyers as well as regulate the real estate sector of India. With the implementation of this act, now all approvals will have to be in place and the agreement signed with buyers includes the interest and the penalty clauses laid down in RERA. Also, the statute now demands that the builder should mention carpet area also specify common areas and the parking areas separately.” On what CREADAI is doing to make this initiative a successful one, Gaur who is managing director of the Guarsons Group too said, “At the CREDAI level, we are holding training sessions for developers to educate them on the changes expected in the new business environment.”

Commenting upon the buyers concerns and some amendments into the RERA Bill Deepak Kapoor, President, CREDAI- Western UP chapter said, “The buyers of property market in particular had waited long for RERA becoming a reality which guarantees safeguarding of their rights and interests. For long has this sector and its buyers being affected, but with RERA in place now, soon there will be a regulator in every state who will monitor all the transactions and have answers for their grievances.” The GulshanHomz director went on to add that the amendments made into the RERA Bill are fair and developers have already started working on the lines because these will now pave way for a better demand and supply in the sector.

Gaurav Gupta, General Secretary, CREDAI – RNE said, “RERA is the biggest thing to happen in the Indian real estate sector and we hope that it will infuse 300 percent more confidence in the buyers to buy their dream home. This in turn will allow end users to create demand, but will take a while to get going and certain case studies to prove its effectiveness.” Gupta went on to add that once the act becomes fully functional in each state, grievances will not remain unanswered, and will come with a definite solution. RERA will open more sources of institutional funding for the sector as institutional confidence will also go up in the presence of a regulator. We hope that the teething problems in its implementation will sure be addressed by the government in a practical manner as the intentions of the government is very clear towards protecting the interests of the buyers rather than to strangulate the sector.

On impact that RERA would have on the Indian real estate sector Rakesh Yadav, Chairman, Antriksh India said, “This act is aimed at protecting the interests of consumers, and also seeks to promote fair play in real estate transactions and ensuring timely execution of projects. With this act in place, every state will now have a regulator who will be continuously supervising and monitoring.” Yadav was of the opinion that projects will now be completed on time and developers will have to submit all the layouts, plans and documents with the regulator who will ensure transparency and hence, customers will feel more secure while transacting.

Avneesh Sood, Director, Eros Group said, “With RERA implemented in full scale now across major states and union territories, developers are sure to find it encouraging towards building a better image for the sector. In fact, most of the developers who are genuinely into real estate had already been following the rules which have been set forth by this act. With the government concerned and showing direct intentions towards the sector, RERA will enhance the sentiments in the sector paving way for growth. Possessions are the hot cakes in the sector today and history of a developer in the near future would be judged on the possessions they have offered.”

Ashok Gupta, CMD, Ajnara India said, “Developers have been gearing up for RERA ever since it became an act in the parliament and have been working based on the norms excluding the limitations. These limitations, if some, can be done away with only when it is existent in the real scenario helping everyone understand them better and try devising corrections.”

Pressing for timely delivery being the driving force Pradeep Aggarwal, Co – Founder & Chairman, Signature Global said, “With RERA on board, each state will have a regulator in place to safeguard the interests of the buyers and promote fair dealings in the sector. The housing demand in particular, will catch up momentum which will allow better performance of the sector. But, apart from everything else, the one thing that will infuse buyer sentiments in the sector will be of timely deliveries.”

On what extra needed for success of RERA Ashwani Prakash, Executive Director, Paramount Group said, “Single window clearance system once implemented across the country will allow RERA to function smoothly, without which there might still be some barriers.”

Expecting control over the oversupply of units Rajesh Goyal, Vice President CREDAI-Western U.P. & MD, RG Group said, “Developers who are not able to deliver on their promises would be automatically filtered out reducing the existing supply in the market, the sector would be much more organized than before and people would be answerable for what is being done at each stage of project development.”

Commenting upon the irregularities being controlled under the RERA Dhiraj Jain, Director, Mahagun Group said, “RERA’s prime motive is to curb the irregularities persisting in the real estate sector and protec