Here’s how RERA will effect ongoing projects

The Real Estate (Regulation and Development) Act (RERA) has come as a protector of homebuyers, and as a much-awaited change that will boost business in the real estate industry. All the projects which have not received their completion certificate have come under the ambit of RERA. For the ongoing projects, it is mandatory to first register with the regulatory authority, and only after that move further towards completing the project. Promoting and marketing of the project is also to be done only after registration with the authority. The developers would also have to disclose all the information about the project on the website set up by the authority. RERA has been seen as an instrument which will strengthen the dampening trust of homebuyers. RERA will increase transparency in the homebuying process and hold the builders responsible for their delays, this would impact builders who follow unscrupulous practices negatively and pressurise them towards honesty and carrying out construction as per the norms given by the government. The builders who are reputed and renowned are viewing RERA as a much needed positive change in this sector. Vineet Relia, Managing Director, SARE Homes, says, “As indicated by RERA, each ongoing project as well as projects which are still under construction, come under its ambit. RERA rules are set, keeping in mind the interest of the consumers, developers and all other stakeholders and for the inevitable advantage of the real estate industry.” Real estate industry is looking towards an upgrade in the real estate sector with the enforcement of RERA. The first ones to take note of the changes brought by RERA would be the builders and buyers of the ongoing projects. Some builders are skeptical about the registration and are presuming this as a process which consumes time and delays deadlines but the bottom line remains that this move will restore buyers’ confidence in the projects in which they have invested in. “According to RERA ongoing projects will fall under the ambit of the act. This will expedite the delivery of ongoing projects. However, coherence needs to be created between the rules for existing and new projects to harness the right benefits of the act and bring transparency in this unregulated sector” says Ravish Kapoor, Director, Elan Group. For years, the lack of trust by the homebuyers on builders has acted as the Achilles heel for the real estate sector, but this Act would regulate the previously unregulated sector and act as a tool for changing the sentiments of the public and safeguard their interests. All the projects which are near completion or have been just started will have to come under this act, their information will be shown on the website of RERA where the consumer could easily locate and pursue the development done by the project he has invested in. RERA is a positive step taken by the government towards redefining the real estate sector, increasing accountability, transparency and increase the trust of not only the buyers but everyone related to real estate.