'RERA authorities should ensure existing projects are first completed'

Indo Asian News Service

Mumbai, April 25 (IANS) The authorities who will monitor the Real Estate (Regulation & Development) Act, (RERA) should concentrate on seeing all the existing projects are completed and delivered before allowing new projects, an official of National Real Estate Development Council (Naredco) said on Monday.

"RERA is the new paradigm which has come in. People will have to find ways not only by the builders but also by the enlightened buyers with RERA authorities come into force.

"The most critical is the Union and state governments to see how deliveries can be made as shorter time period as possible. Before new projects are allowed, we need to see all the existing projects are completed, delivered so that while you (builder) take approvals for new projects, you (builder) continue the process," said Naredco Chairman Rajeev Talwar.

"RERA is a good piece of legislation," he said, adding his hope that the problems the buyers have been facing will now become the story of the past.

"Buyers have been facing problems for almost a decade. Interest of the buyers must be protected," he said.

"In terms of implementation of the RERA, it will certainly take some time because the regulations say that you (builder) can register (a project) only after all the approvals have been taken.

In a place like Maharashtra, the cycle can take up to two years. Very often, various authorities are not in place. They take plenty of times for processing the same approvals which should not be time-consuming," Talwar said in an interview with BTVi.

He said that the real problem to solve was for buyers who have already booked flats or apartments in a place like Mumbai and any other cities in India.

"The real solution lies in assuring all the buyers all over the country, the apartment they booked will be delivered to them without any additional charge and any specification albeit delays," he said, adding that for which, all the state governments need to get some things into action.

"The inventory of projects which have been undertaken for construction and which are nearing completion. We need to play more attention for these kind projects some kind of funding kick starts, if required, may be done through a screw account so that the projects start rolling," he said.

Trust deficit should be negated, if it happens, the establishment of RERA would be justified, he added.

He said state and central government can intervene if prices of commodities go up. For example, cement prices from Rs 200 a packet to more than Rs 300 in the last six months. Prices of steel have gone up from Rs 33,000 a tonne to Rs 47,000 a tonne in the same period.

"We need to have that each one of these producers commit to a price over a year and the quantity, they will make available. Builders of affordable housing or other housing can actually plan their outlay and capital expenditure over a year's time," he said.

Maharashtra government released pro-consumer RERA rules and developers are to face action, stiffer penalties on violation of norms. In terms of penalties, he said criminal proceedings should not take place against developers.

"Let each of the RERA authorities take up each project and transparently bring out how much time is required," he added.

--IANS

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