Sources confirmed that National Real Estate Development Council (NAREDCO) and CREDAI (Confederation of Real Estate Developers’ Associations of India) are in favour of Real Estate Regulation and (Development) Act (RERA) implementation and they won’t move court against it, even in the matter of ongoing projects, as it helps bring back positive buyers’ sentiment towards the real estate market. NAREDCO president Praveen Jain confirmed this in a press release.
According to the notified rules of state RERA, CREDAI also directed its members to go through the registration procedure. But it will certainly monitor RERA’s future course of action and will wait for the observations by courts hearing this matter. Developers from Nagpur Jabalpur and have filed cases in and Mumbai Bhopal high court, respectively, against the execution of RERA on under construction projects.
Some developers have claimed that some projects have been launched under the previous policy, RERA rules should be equally stood for-RERA came into force in May, 2017- would measure up implementing the law with retrospective effect.
RERA was brought into frame by the union government for recovering people’s trust factor and accountability to the real estate sector. This act needs to be executed through the state governments in the presence of a real estate regulatory authority, formed by the state legislature. Along this states have to develop their respective RERA websites to enable developers to register their projects online.
The reason why CREDAI opposed RERA is that there is a clause in RERA, where it’s said developer needs to maintain 70% unused amount for project development, which apparently he collected from the buyers of an ongoing project in escrow account- shouldn’t be implemented with the retrospective effect. CREDAI thinks that all should follow MahaRERA model, which allows 70% of all future payments from buyers in ongoing projects must go in the escrow account. CREDAI has indicated that RERA rules have to be practical enough in all-square, which should aim at faster completion of ongoing projects.
Similarly, NAREDCO envisages that a proper infrastructure in required for successful implementation of RERA, where developers should be provided a smooth-operating project registration service to avoid any discontinuance in the project development procedure. An interim regulator is not enough for the apt judgement; states should soon replace them with the permanent ones. This is supposed to be another crucial reason causing delay in the project registration process.
Haryana, Telangana and West Bengal have not notified their respective state RERA norms. A series of new launches have come up in luxury and budget residential property sector in West Bengal. Market has witnessed a lots of new-build flats in Rajarhat and Garia location under the previous regime. These properties are yet to register, as the state hasn’t launched its website as of now.
Hence, every project should get registered by July 31 to carry on their marketing and sales conducts. Else, RERA holds the decisive authority to nullify or even to bulldoze any project,
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Excellent posts.I am very happy to read this. This is the kind of manual that needs to be given and not the random mis information that’s at the other blogs.