By Shradha Goyal |April 20, 2017
The notification of RERA sections that will be implemented effective May 1, 2017 consist of key measures such as property registration, title of the project and formalisation of realty agents. Once executed, these changes will revive the realty landscape of the country.
On May 1st, India will witness the implementation of one of its most radical policy reforms benefiting the realty landscape – the Real Estate (Regulation and Development) Act, 2016. The Ministry of Housing and Urban Poverty Alleviation has notified that the sections 3-19, 40, 59-70, 79 and 80 will be rolled out on the decided date. The notification has infused a fresh lease of hope and instilled a lot of confidence among the real estate stakeholders regarding the government’s earnestness towards executing the Act without any further delay.
The sections 3-19 pertain to the registration of realty projects and real estate agents, functions and duties of project promoter including compensation, insurance and title of the project; and rights and duties of allottees. Mandatory registration of real estate projects under the Act is one of the most-awaited regulations which will work towards protecting home buyer interest and safeguard them from fly-by-night operators.
Section 40 provides clarity on the recovery of interest, penalty or compensation imposed on a promotor, allottee or a real estate agent through arrears of land revenue.
Sections 59-70 deal with the enforcement of order. Under RERA, the authority holds the right to penalise or punish promotors or agents in case of any disputes or contravention of orders or directions of the authority. The sections’ timely execution will form a strong foothold for the success of RERA as it aims to bring credibility into the sector.
Sections 79 and 80 are regarding the powers vested in the appellate tribunal pertaining to matters covered under the Act. It bars intervention of civil courts in the same.
After the notification of the first 69 sections in May 2016, the implementation of the remaining sections will provide the much-needed impetus to the subdued realty sentiments across the country. Several industry experts have lauded the governmental efforts towards timely implementation of the Act and its impact on the real estate market. Here’s a closer look at some of the reactions:-
Rahul Shah, CEO, Sumer Group
The implementation of RERA on 1st May, 2017 aims to bring the much-needed discipline in the real estate market. This sector will see a serious change in terms of transparency and competitiveness. The Act will make it more hassle-free and definitely a consumer-focused industry. It is directed to aid a regulated market and will prove to be a boon for both developers and buyers. Many developers have started to re-design their business practices and processes to suit the regulations perfectly. Developers are now being more cautious about the norms announced by the government so that they are well adept to the terms of RERA. We are looking forward to this new change in real estate.
Nandan Piramal, whole-time Director, Peninsula Land Limited
With RERA, there will be a higher level of transparency and accountability by all developers, which will allow and improve the flow of funds into the sector. This is one of the most critical reforms as it neutralises benefits for all the stakeholders. The act protects buyer interest and brings major relief by addressing consumer concerns about the delay in project completion and change in the layout of the project, or the token amount being used in incorrect or unfavourable manner. RERA will ensure that even the non-listed and unorganised players in the industry are lucid with the consumer as well as the authorities. Additionally, moving towards the more organised sector will help the Indian real estate industry attract more attention from foreign investors. This initiative by the government is a wise strategic choice, it ensures reliability in the sector, making it secure and increasing its credibility.
Arjunpreet Singh Sahni, Executive Director, Solitairian Group
Presenting a win-win situation for both the genuine developers as well as the beleaguered homebuyers, the recent notification of the RERA sections which also includes provisions such as registration of real estate agents, rights and duties of allottees is a major milestone achieved. All these notified sections will promote best practices in the construction industry and act as a major deterrent for the fly-by-night operators. In a nutshell, it is really a highly encouraging development for all the stakeholders of the real estate sector. However, at this juncture, it is also important to scrutinise the implementation of the new act which largely depends on the respective state governments. Looking at this scenario, we expect the Ministry of Housing and Urban Poverty Alleviation will keep a close watch on the implementation of this act, so that it can actually bring some positive changes in the industry.
Manju Yagnik, Vice Chairperson, Nahar Group
The real estate industry sees this bill as a welcome step as it focuses on streamlining processes in the sector. We trust that the guidelines of RERA are set by the governments keeping in mind the mutual well-being of developers, consumers and all stakeholders to eventually benefit the real estate industry. We believe that the government and policy makers are working in the interest of the industry. The key intention of RERA is to benefit homebuyers. The Act is being monitored by the central government and in the process of getting aptly implemented by state government. The support from state regulator will make processes more efficient in the industry and create a sustainable ecosystem.
Farshid Cooper, Managing Director, Spenta Corporation
The most important aspect of RERA implementation is its impact on transparency that the bill will bring about to the overall real estate market. With the Maharashtra state government looking to adopt most of the guidelines proposed by central government, we can look at a heavily pro-consumer inclination of future functioning of the real estate. We also expect a strong thrust on construction activities to ensure quick and timely delivery of properties in the future. Implementation of RERA in its current format is a welcome move as it would give a boost to market players who have strong fundamentals and customer oriented fair business practices in place. As a firm, we are already geared up for the upcoming regulatory changes and are expecting that with fair and transparent rules, there would be a strong boost to the market where buyers can transact with trust and confidence.
Sachin Bhandari, CEO, VTP Realty
It is a great step forward by the government which safeguards the interest of homebuyers. The RERA guidelines will bring accountability and transparency and help with stalled projects. Even the developers will have to stick to possession deadlines and that in turn will bring some structure to the largely unorganised sector.
It ensures all processes are strictly followed as the mandate is for the builder to disclose details of all registered projects, promoters, layout, approvals on land, agreements etc. It is a welcome step by the government as it will further breed trustworthiness and openness in the sector. Since all developers will have to be registered with RERA, it would allow consumers to track new and existing builders and make an informed decision before buying their dream home.
Chintan Sheth, Director, Sheth Corp
The real estate sector is already in a revival mode and once RERA comes into force, we hope to see better transparency in the way business is conducted and increasing confidence among homebuyers. Furthermore, the recent notification of the RERA sections by the Government will now help to curb many inconsistencies and unfair trade practices; bringing more professionalism into the sector. With the RERA Act, we can now expect to witness positive reforms for the sector. The realty sector can expect a more systematic approach initiated by all stakeholders with proper processes and systems in place. This will result in healthier sales and growth for the sector; being a win-win situation for both developers and home buyers alike.
Sanjay Jain, Group Managing Director, Siddha Group
>RERA, when gets functional will have a significant impact on the real estate sector. Initially in the first 6-12 months, there would be some confusion, but in the long run, it will definitely be beneficial. The already existing sections and the addition of new sections will together bring in the much-needed transparency and will also establish a smooth mechanism in the processes going forward. The ACT will also try to protect the interest of consumers ensuring speedy redressal of disputes which will help gain confidence amongst the buyers.
Publication / Source:99acres.com