RERA implementation in West Bengal is struck dumb after the drafting completed on Aug 16. It seems like overruling the deadline and penalty panic hardly have any impact on the execution stroll of the state. A month is over after the introduction of West Bengal Housing Industries Regulation Bill, 2017 in the assembly; still, the Real Estate Regulatory Authority is not formed in Bengal. Reportedly, it will get constituted within coming couple of the months.
West Bengal Housing bill suggests that for all ongoing projects, for which the completion certificate has not been issued, the developer should make an application to the Housing Industry Regulatory Authority (HIRA) within a period of three months, from the date of rollout of the Act. It was also asserted that government will take strict action against those builders for filling up wetlands and ponds for the development purpose. Once the Act gets notified by the Bengal government, all residential projects above 500 sq metres/ with eight apartments, have to be registered with the state regulator HIRA.
“People who are looking to buy property in Kolkata will have to hold their purchase decision for some more time till the registration process of real estate stakeholders and projects successfully completes. A series of project dispensing is on halt due to the tardy restoration process of the central Act,’’- said Mr. Mahesh Somani, Head- East Zone, National Association of Realtors India (NAR).
RERA mandates registration of builders, realtors and realty projects. Without RERA registration number a project can’t be even on the display. Registration process only can be started after the formation of the state RA (Regulatory Authority). That reminds, West Bengal realty industry has to wait for another couple of months for the registration process commencement. Real Estate sale in Kolkata is already low-hanging after demonetization blow. Additionally, GST has computed hefty tax burden on the under-construction projects for the end-users. Over and above state’s delay in RERA implementation is further influencing pessimistic investment sentiment in realty.
Apparently, after the outset of the registration process real estate industry of West Bengal will need at least a year to be accustomed to the new set of law on the back of registration fruition. Looks like the watchdog of Indian realty RERA Act has been victimized by the inferior state infrastructure. This has hit the housing loan companies directly as buyers are in no mood for long-term asset investment.
However, the Act will ensure that developers adhere to the delivery schedule and uphold their commitment. Unscrupulous promoters or realtors will be kicked out of the market in order to provide improved and transparent consumer support. The Act will steer orderliness in the real estate sector and build benevolence among buyers.
–LNN (Liyans News Network)