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The RERA report card

With the Real Estate (Regulation and Development) Act completing one year of its implementation, our experts share their views on the Act’s implications.
Read on…

DR Vijay Satbir Singh, Member, MahaRERA

“MahaRERA has been leading from the front and registered the highest number of projects in the country. The tribunal has been set up and we have also started hearing the cases and our rate of case disposal has also been good, which is more than 50 percent. We have maintained a visitor’s record book as well at the office, so that petitioners and others can give us feedback.”

Niranjan Hiranandani, President, NAREDCO

“The first year of RERA has had issues; however, MahaRERA has proven to be a success story for other states to follow. Not only has it seen the highest number of projects registered, its performance has been applauded by industry stakeholders including the home-buyers and governmental authorities.”

Binaifer Jehani, Director, Crisil Research

“Many states have till date struggled to implement the Act, thereby creating a discomforting environment for the buyers. Deviation from the model Act is a cause of concern as some states have diluted the Act. However, Maharashtra is doing very well, and setting a benchmark for other states to follow. RERA has ushered in a positive sentiment within the market, particularly in Mumbai and encouraged buyers to invest in homes.”

Navin Raheja, Chairman, Real Estate Committee, FICCI

“The aim of RERA is to bring in transparency, gain the trust of the customers, make the realty sector much more organised and to top it, create a level playing field for everybody. It is hence important that not only the authorities, but also the developers comply with the orders, as it will improve the overall sentiment and help the market recover at a much quicker pace.”

Vinit Deo, RERA Expert

“Till today, all the states should have completed the procedure of framing the rules and regulations, appointment of authority and setting up of the website and Appellate Tribunal. However, the only state that is on track is Maharashtra. Other states like Karnataka, Madhya Pradesh, Gujarat and Uttar Pradesh are slowly getting there. But there is no denying the fact that RERA has increased home-buyers’ confidence and restored the lost credibility of the market.”

Jayant Manglik, President, Religare Broking

“While on one hand states like Maharashtra have been performing very well, on the other, West Bengal has been a non-performer. Hence, I believe it is a mixed bag as far as the first year is concerned. And I wish that the central government continues to push the state authorities so that they implement the law and its impact is visible to all.”

Neeraj Sharma, Director, Grant Thornton Advisory

“Over the years, the real estate sector has been characterised by myriad unstructured practices, which has given a very different perception of the sector to the larger stakeholders of the economy. These practices have led to an increase in the number of litigations, marked with worsening customer sentiments. However, RERA has the power to change the perception of home-buyers and reinstill the lost trust. It can actually change the entire landscape of the real estate sector including the way business is conducted; hence, it is important we all comply with its rules and regulations.”

Babu Sivaprakasam, Partner, Economic Laws Practice

“Maharashtra, Gujarat, Punjab and Madhya Pradesh have been the pioneers where the implementation of RERA is concerned; however, states like West Bengal, Arunachal Pradesh, Mizoram among others have failed to take the onus. Approximately, 10 states are yet to finalise the format for agreement of sale and several others have yet to start registering projects, mostly due to the absence of authorities. Most states in the country are working with an interim regulator and are yet to appoint a permanent regulator. Due to the diverse state-specific real estate laws in the country, each state has its own challenges and is still coping with the same. While a few authorities have also taken suo motu actions against developers and agents, it is a long way for RERA to see its complete impact.”

 

 

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