Any law is expected to be meant for complete justice to the victims. The Real Estate Regulative Authority (RA) won’t be able to penalize any developer for delays on their in-progress projects before May 1, 2017. Several state officials spelled out that RERA for states can only penalize projects after they get registered with the authority and the builder overdraws the stipulated deadline. RERA can only go about under straight-out rules, it can’t perform farther.
RERA decides the timeline for several projects that had come to the authority for registration purpose. RERA sets the timeline of these ongoing projects varied by case to case. This chapter is unveiled in the press conference organized by the industry body FICCI on last Tuesday. By far 14 states and UTS notified their respective state RERA rules and others have been asked to notify theirs within July 31.
Consumers have alternative options open to raise their complaints to the courts of law or they can choose RERA to bring off their existing issues. But for earlier delays before May 1, RERA holds the white flag. The recent report of industry association Assocham clarifies that there are currently approximately 826 housing projects across the nation facing delays up to 4 years. Already, several big realty big-shots have been shown the jails on account of fraudulence.
People lost faith from the realty sector, for its project delays. Now-a-days promoters under RERA ambit promoter needs to pay the entire amount for land purchase. Again they can’t charge more than 10% in advance for booking purpose. 70% of these collected amounts have to be deposited to a separate bank account which can be only used for the existing project development. All these have resulted builders are running out of cash at present. New projects are hardly getting any chance of commencement. There’s overall a market slowdown for sometimes now.
RERA will secure buyers’ rights. But presently they are having a skeptical mind-set as there are paraphernalia slowly coming out of the closet after RERA implementation. But the good point is at least there should an authority to control increasing double-dealing of the promoters and hear the buyers’ woes.- said Mr. Mahesh Somani , West Bengal RERA expert.
- Somani Realtors News Network-