Your space: Rera beneficial to buyers, developers in Pune

Topic of the week: The Real Estate(Regulation and Development) Act, 2016, seeks to protect homebuyers and regulate the real estate industry. It also adjudicates in disputes between builders and property investors. Here are the readers’ view on Rera

1. Credai welcomes reforms

The strict norms of Rera have helped in regaining confidence in the mind of homebuyers. (SHANKAR NARAYAN/ HT PHOTO)

The confederation of real estate developers’ association of India (CREDAI) has welcomed from the inception the reforms in real estate sector through enactment and implementation of real estate regulatory authority (Rera). Maharashtra has been the first state to implement the Act and rules framed thereunder. Also, Maharashtra has been the first state to implement the nationwide policy of “Ease of doing business” by enacting an online portal for compliances under the Act and rules. CREDAI as an organisation has always worked closely with the government authorities and supported in framing the relevant provisions under Rera and Maha-Rera rules. The success of implementing Rera in Maharashtra can be seen from the number of projects registered, more than 16,000 projects being registered in Maharashtra within a period of one year from its enforcement compared to the national figure of 27,000. While registering the ongoing projects by developers on Maha-Rera website all documents relating to the projects are available to the homebuyers. The entire process has brought transparency and there is commitment of delivering homes by developers and it has brought discipline in usage of funds. The strict norms of Rera have helped in regaining confidence in mind of homebuyers to have security of their hard earned money invested and getting their dream home in timely manner. The implementation of conciliation forum in Maharashtra has helped in resolving disputes between the developer and allottee in short time span without referring the same to any court of law. The whole real estate sector has expressed their positive thoughts for implementing Rera as it shall be helping in curbing illegal construction. This has created a healthy market and competition amongst the developers. Considering all these positive changes in industry we can surely say that Rera is on right track. - Shantilal Kataria

2. First regulator

For a very long time, home buyers have complained that real estate transactions were lopsided and heavily in favour of the developers. RERA and the government’s model code, aim to create a more equitable and fair transaction between the seller and the buyer of properties, especially in the primary market. RERA, it is hoped, will make real estate purchase simpler, by bringing in better accountability and transparency, provided that states do not dilute the provisions and the spirit of the central act.

The RERA has given the Indian real estate industry its first regulator. The Real Estate Act makes it mandatory for each state and union territory, to form its own regulator and frame the rules that will govern the functioning of the regulator. The most positive aspect of this Act is that it provides a unified legal regime for the purchase of flats; apartments, etc., and seeks to standardise the practice across the country. - Sandip Chandani

3. Faith restored

Rera has certainly brought unprecedented levels of transparency into real estate projects and have reinstated consumer faith in the industry. In addition to mandating developers to regularly furnish updated information about ongoing projects, the Act will go a long way towards avoiding delays in delivery. It will also allow for the speedy redressal of disputes between buyers and developers. Consumers will finally have someone to turn to, in case of any structural defect in workmanship, or issues with quality or provision of services and other obligations within the first five years of the agreement. Developers are required to rectifying such defects free of cost within 30 days of the consumer bringing it to their notice. Also, The Act imposes strict rules on developers, aimed at protecting consumers from time delays and financial losses which is a pro consumer decision. Considering all of these points, it is established that the Rera act has only got good times for the consumers as well as for the honest developer in the city. - Pratik Jainabadkar

4. Issues addressed

RERA is beneficial to both the buyers and developers. This act is really very beneficial to the buyers to address grievances of property who at times are cheated by developers on delay in delivery of under-construction properties, execution of said project plans, the legitimacy of properties, etc. Through this act, the developers should also have to disclose project related details such as project plan, layout, and government approval like sanctioned floor space index (FSI), number of buildings, etc. These details are very necessary for the buyers to make the right decision about buying or investing in the property. Also, they can advertise their project before registration under RERA. The complete details have to be updated on the website as well. Through RERA it actually brought the transparency in all stages of the transactions. With laid rule and guideline it promotes accountability, transparency & efficiency in the reality sector. This act actually helps all the property buyer and investors too. - Rajeev Ghode

5. Trust gained

RERA has empowered home buyers to take decision on the purchase of property in a very transparent manner. It has increased the trust on the real estate industry by insulating the home buyers against any false commitments and ensuring on time possessions of homes. RERA has acted as a catalyst to help institutionalization of the sector which has lead to an economy that is more aligned to global compliance standards and an industry with high levels of corporate governance making it easier for entities to invest in India. The sector has also witnessed mergers and acquisition of projects in certain markets. To sum it up, RERA has benefited the customers with transparency and ease of transaction as well as helped organized developers on governance, funding and gain on the much needed trust factor which the industry suffered. - Vineet Goyal

6. Welcome step

By the enforcement of RERA at least builders and developers are come under scanner and answerable to buyers for their lacklaidiscal attitude towards completing projects which is giving homebuyers required respite. At least now homebuyers ask for RERA registration and feel secure about the flat they are booking. In a way homebuyers interests are safegurded by the new law but builders are feeling sufficed under it and it is possible that they will find some loophole to supercede the RERA. The left,right and centre development of residential complexes has now halted for a while and heading for a RERA registration which is necessary and homebuyers are feeling safe to invest in RERA registered residential projects. First time a step is taken to control builder and developers which needs to be welcomed. - Maya Hemant Bhatkar