New Delhi, 19th June 2017: An amendment, named Real Estate Regulation Act or RERA, passed by the parliament, states that each and every state along with the Union Territories and Capital of the Nation will have its own manager and specified rules to control the functionality of the regulator.
Motto & Initiation of the RERA
Some of the states, like Maharashtra, Uttar Pradesh, and Haryana have already notified the rules, and the regulator will soon start operating on the same. This act demands the introduction of transparency and the initiation of a fair process, which will safeguard the activity of the investors and impose a penalty on the offending builders.
Areas of Concern of the RERA
The ticket price has drastically decreased due to lower demand and higher inventory. RERA has initiated its work in the following areas
- The detour of the fund to other projects, changing policies of the Govt., the involvement of other vendors in the construction work, etc. are few of the reasons for the delay of the project.
- Selling of the property by the builders to the investors without the authorised approval of the plan, ambiguous floor area ratio, poor quality of the construction job, and other political litigations contribute to the deferment of the project.
Steps Taken by the RERA to Resolve the Concern
- The promoters will have to maintain collateral accounts for different projects, where 70% of the amount will have to be deposited and can only be spent for the purpose of the construction.
- To keep the relation of the developer and the investor transparent, the progress of the work has to be informed at regular interval.
- RERA demands the approved plan from the builder and has strict norms regarding the information about any changes in the plan.
- Financial transaction of the project needs to be transparent between the RERA and the builder.
- The schedule and fulfilment of the construction, delivery of the property within the given time frame is monitored very minutely.
- The delivered project needs to be certified by a competent Chattered Accountant or an Architect
These are the measures taken by the RERA to induce a smooth procedure in the real estate business.
Author: Supriti Ganguly
Supriti Ganguly is a Content Contributor at a3solutions.in. She is having more than three years of experience in working closely with B2B and B2C businesses providing blog writing, article writing, news writing, and copywriting services. Supriti is a professional writer with extensive knowledge on content marketing and adept in content strategizing for business collaterals. She is experienced in writing technical, promotional articles, and blogs that leave a lasting impression on readers.