Realtors in Noida on Thursday gave mixed reactions to the proposed revision of the Real Estate (Regulation and Development) Rules of the Uttar Pradesh government.
As per the new draft of the regulation, the government has proposed to bring all under-construction or partially developed projects without occupancy certificate after May 1, 2016, in the ambit of the real estate regulatory authority.
Amit Modi, director of ABA Corp, and vice-president of Confederation of Real Estate Developers Association of India (CREDAI) said RERA will create a positive sentiment in the realty sector and restore homebuyers’ confidence in realty.
“I do not think RERA will impact the realty sector negatively. If all realty projects without occupancy certificate comes under RERA, it will help in regulating the business. An ongoing project will have to get a registration done under RERA and continue delivery of the project. The positive impact will be that a buyer or investor not paying the remaining cost would have to making payments as he can be rest assured that RERA has ensured safety of his funds,” Modi said.
In Noida, 86 group housing projects have been delayed by three to four years due to a slowdown in the realty sector, affecting around one lakh buyers who had invested in projects that were to be delivered by 2012.
In Greater Noida, around 3.5 lakh homebuyers in 91 delayed realty projects are yet to get possession of flats that were to be delivered from 2012.
Similarly, 13 realty projects are delayed in Yamuna Expressway industrial area along the 165km Yamuna Expressway connecting Greater Noida with Agra.
Realtors such as Amrapali Group, who has partially completed their six housing projects in Noida and also applied for occupancy certificates in 2014-15 are a worried lot after the definition of ‘ongoing’ projects changed in RERA.
“It will be tough for us to deliver under the new rules because we had applied for occupancy certificate in 2014-15 and the Noida authority did not give us the approval. But we will try to deliver under the new rules,” said Shiv Priya, director, Amrapali Group, which has to deliver 10,000 flats in its six Noida projects.
Builders who does not have any fund crisis and wish to make deliveries soon are happy with the new laws.
“RERA will benefit us because homebuyers, who are defaulting on instalments, will start paying fearing action under the new rules. Also, we will deliver as builder-buyer agreement (BBA) made at the time of flat purchase. The good thing is that RERA will deliver justice on BBA disputes in a timebound manner,” said Anil Mithas, CMD of Unnati Group, and a member of CREDAI.