Real Estate

Real-estate firms mull setting up special team to comply with RERA

Bindu D Menon Mumbai | Updated on January 11, 2018 Published on May 01, 2017

Industry watchers point that a lot still needs to be done to ensure proper implementation of the Real Estate Regulation Act

With the Real Estate Regulation Act coming into force from May 1, a host of real-estate developers are scurrying to meet regulatory requirements. Several developers are mulling to set up a ‘RERA compliant team’, which will look into the nitty-gritties of the Act. Others are hustling up documents needed to meet various provisions in RERA.

“The Real Estate Act marks the dawn of a new era in the real-estate landscape of India,” said Ashish R Puravankara, MD, Puravankara Projects. “We have taken into account the rules and made all necessary preparations. We have also appointed a RERA compliance officer, who will work within our existing legal function to monitor and ensure compliance with the regulations as prescribed in the Act.”

“Several builders of on-going projects that are nearing completion are hustling to arrange Occupancy Certificates (OC) from their local authorities in order to avoid falling under the Act,” said Shailesh Puranik, MD, Puranik Builders.

Online transaction advisory platforms too are working to provide accurate data to consumers.

Manish Sinha, Head, QuikrHomes, said: “Online real-estate platforms like us can help in creating a trustworthy environment based on tangible data. However, providing data and information for many new requirements will be a complex task. The entire buyer and builder community needs to readjust to the concept of carpet area, cost of delays, project-centric funding and expenses, and the potential of significant penalties. We believe the authority (Real Estate Regulatory Authority) needs to manage the implementation well to avoid chaos in the industry that can run into a few quarters due to the massive nature of the changes proposed.”

Industry watchers point that a lot still needs to be done to ensure proper implementation of the Act.

Sachin Sandhir, Global MD - Emerging Business, RICS, said: “The formal authority (Real Estate Regulatory Authority), which will implement the rules and regulations of the Act, has not been constituted in most cases; so a developer who has to get his project approved still does not know who to go to. If a developer faces loss of revenue on account of such an authority not having been constituted in time, it will be interesting to see who would be held legally liable.”

Sandhir said public authorities such as development authorities, Housing Boards etc, are well within the ambit of this law since the term ‘promoter’ includes such authorities as well. However, so far there has been no indication that these public authorities — which also develop real estate — have come up with a new compliance framework under this law.

He said it as important for government authorities to educate developers — both in the public and the private sectors — on achieving compliance with the law.

Published on May 01, 2017
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