May 2 2017 | India Opportunities
RERA brings 83000 registered builders under its preview: Anshul Jain
Anshul Jain, Managing Director, India Cushman and Wakefield on the RERA Act has said,"The on-ground implementation of the Real Estate Regulatory Authority (RERA) law, beginning May 01, is the single biggest reform which will inspire the much needed trust in time in the sector and therefore boost investments from consumers and private & institutional investors. The act will bring almost 83,000 registered builders in India under its purview to ensure that the interest of home buyers are protected. Better regulation and accountability will spur investments from foreign and domestic financial institutions and will bolster longer term potential on real estate investments. RERA’s focus on mandating disclosure of projects, including details of the promoter, project, land status, clearances, approvals, etc. and the timely delivery of projects will help increase the credibility of developers as well. As for penalty, both homebuyers and developers will be penalized for delays in payment and completion of projects respectively. Furthermore, the act mandates the developers to deposit 70% of the project cost in a separate bank account to cover project development activity. This step will be substantial in ensuring timely construction of projects and act as a safeguard in the event of any delays as it would limit diversion of developers’ funds for other projects."