RERA Act is poised to inflict a much-needed strategic shift in the way business will be done in the real estate sector.
Although RERA 2016 has kicked in, variable formulations of Rules at the State level and the delay in notifying rules are the unintended consequences of the ACT which otherwise was poised to bring about a strategic shift in the way businesses will play their respective roles. For more news updates about Indian Realty, visit buy residential plots in sarjapur
The Act was intended to lift the level of transparency by some notches and increase the much-desired accountability of developers.
Not to be forgotten is the pivotal role that each State and UT Government plays in the way the RERA plays out in the eventual reality. This pivotal role play concerns the framing of appropriate rules governing the different sections of the Act, setting up of Regulatory Authorities and Appellate Tribunals. For more updates about RERA, follow gated township plots for sale in sarjapur
As per the statement issued by the rating agency ICRA, till date, just seven states have been able to notify the required rules. Besides, non-appointment of a regulator or the non-formulation of sound rules governing transactions can significantly dent the effectiveness of this ground breaking Act.
Only UP, Gujarat, MP, Maharashtra, AP, Odisha, Bihar and UTs met the October 2016 deadline for notifying Rules under the Act, while the rest have even missed the extended April 2017 deadline. The only silver lining is the fact that Karnataka, Haryana and Telengana have formulated draft rules. But even in these three, the draft rules formulated by Haryana Government are crucially lacking in the provisions reprimanding errant developers, a crucial shortcoming for a BJP-ruled State. For latest Indian Real Estate News, follow best plot developers in bangalore
MP is the sole State that has set up its own RERA, while some other few States have set up only interim authorities.
Registration of projects with the RERA is mandatory before the project is launched as well as sold. So any delay in setting up State-level RERA will undoubtedly have a detrimental multiplier impact on the businesses of realtors’ new projects.
If the State Governments formulate appropriate rules without any sleight of hand, then every under-construction project will be required to be registered with the State RERA within three months of the Act’s commencement. This is a tall order to expect no delays in notifying rules, setting up RERA or Interim Authorities and take on Appellate Tribunals in good time. Browse affordable plots for sale in sarjapur for latest Indian Real Estate information.
Buyers under such circumstances are more likely to play a wait-and-watch game, whereby, there is a systemic pressure exerted on demand, and prices increase under short supply.
As per the provisions of the Act, if the State RERA does not respond within 30 day of filing the application for registration, the application qualifies for a deemed registration status. But such an eventuality would jeopardize the due diligence process at the level of initial scrutiny itself. For latest Real Estate News, visit new layouts in bangalore
State level RERA is empowered to play the role of watch dog to deal with complaints preferred against promoters/develops. So any kind of delay in instituting RERA would adversely place the buyer at the mercy of the unscrupulous seller.
If penal provisions in the Act when taken over-zealously by the Regulatory Authority, the developer community would come under increased fear about the consequences of even normally permissible acts. For latest Real Estate News, visit independent plots for sale in sarjapura