Notification on Real Estate Act increases onus on builders, Central, State authorities

New Delhi, May 04, 2016: With Real Estate Regulatory Authority (RERA) becoming a reality after the notification of Real Estate (Regulation and Development) Act, the builders and developers have challenges ahead to do their businesses and ensuring homebuyers getting their homes on time.

This was stated by National Real Estate Development Council (NAREDCO) President Parveen Jain in a statement.

The new law enjoins upon all developers and builders a financial discipline so that they cannot transfer funds meant for one project for another. This will ensure sufficient funds for the projects to get completed and timely delivery of flats to the home buyers, Mr Jain said.

Mr Jain said resentment prevails among builders and developers as the new law does not provide “a single window” system for getting mandatory clearances from the various central and state authorities.

The new law will not ensure timely clearances to the projects, a major cause for delaying the projects, he said, adding that it would also escalate the home cost. “The the new Act favours consumers at the cost of builders and developers who play an important role in the GDP growth,” he said.

Vociferously demanding “single window system” for the real estate industry, Mr Jain said the Act is meaningless without this provision. Both the Central and State governments’ authorities must ensure necessary infrastructure like roads, water and electricity supply as well as local transport system in a time bound manner so that quality urbanization takes place with modern outlook, he said, adding that infrastructure development is the key to the success of real estate sector.

Thanking all the political parties for the passage of RERA Bill, Mr Jain said that this “national spirit” would regenerate the real estate industry by increasing the confidence of consumers in builders and developers.

“The onus of success of RERA depends not only on builders or consumers but also the Central and State authorities,” Mr Jain said.

Corporate Comm India (CCI Newswire)