Three years of RERA: Impact and Way Ahead

Photo: For representational purposeThe Ministry of Housing & Urban Affairs (MoHUA), Government of India, recently organised a national webinar where representatives of homebuyers associations, developers and builders associations, financial institutions, officers of central and state governments, and other public bodies like chairpersons of RERA authorities and appellate tribunals of states and Union Territories, attended the webinar.Here are some highlights of the meetings: Hardeep Singh Puri, Minister of State (Independent Charge), Ministry of Housing and Urban Affairs, said: • It took 70 years for the real estate sector to get a regulator.• History has been created and will be remembered pre and post RERA.• With RERA, homebuyers have found a voice. RERA has performed commendable success in three years.• Two states are pending for notifying the state RERA and this is under process.• Urging the state governments to form the appellate tribunal and other mechanisms as soon as possible.• There are twin problems – demand has dried up, inventories are high and projects are being delayed. RERA was formed to restore confidence in homebuyers and look after the sector.Further, NAREDCO’s video regarding the guidelines for the construction industry was also showcased. Rajive Kumar, Chairman, Uttar Pradesh RERA, talked about certain issues related to stuck projects, which are a huge concern in the present scenario. He also mentioned that liquidity is an issue and the sector is looking early to this. He also said that the sector needs to relook the architecture on RERA. Anthony De Sa, Chairman, Madhya Pradesh RERA, shared detailed insights on AIFORERA, which will be a common digital platform for all the RERA. He talked about structures, important issues to resolve, state-wise data including commercial, data break-up unit wise, sales of information, agent details, among others. He also mentioned that at present there are only 14 RERA registered with AIFORERA. Dr. Niranjan Hiranandani, President, NAREDCO, said, “The third anniversary of the Real Estate Regulatory Authority was observed with the Minister for Housing Hardeep Singh Puri addressing a webinar, which focused on what achievements have been done so far, and the way ahead. While NAREDCO welcomes the measures brought in by RERA as also the paradigm change which will reflect across a longer time frame, there are issues like liquidity and one time rollover of debt to enable restructuring where the real estate industry looks forward to measures to solve these ‘immediate’ problems. We congratulate the authorities, including the ministry, the state governments as also all stakeholders who have made RERA a success over the past three years; growing further in days to come.” Further, the associations talked on the following points: • Increasing Swamih Investment Fund• Reintroduce subvention scheme• Pushing for Model Tenancy Law• Bring financial intuitions and government bodies under RERA• Need accurate data• Reduce home loan up to 6 per cent• Ministry to convince labour for the safety• All permission should be extended to one year• Central and state governments should work together on tax burden• Use RERA to bring the cost down• Uniform site for RERA• Integrating Sersai, MCA, licensing site• Red flagged projects need to be highlighted on the website• Reinitiate subvention to encourage sales• Extend the power license to developers• Grievance cell at the local level• One nation, one license• Affordable housing should be offered to more developers across the country to the sector afloat• HFC rates are going up• AI for RERA• Ease of doing business number increased• Force Majeure clause will come when needed• RERA exist to keep the promise that developers made to a home buyer for his dream home• Developers should empower the home buyer in this new digital e-governance era.