NEW DELHI: West Bengal, Kerala and Assam are yet to implement the pro-consumer Real Estate regulation and Development Act (Rera) while states which have done so have rolled out watered down versions. What more, the proportion of unregistered projects are also very high.
In Maharshtra, Madhya Pradesh and Karnataka, where Rera is fully operational and are considered model states in term of Rera implementation, hundreds of under-implementation projects are not registered, piling hardship on thousands of homebuyers.
States such as Haryana, Uttar Pradesh, Telangana, and Tamil Nadu among others where implementation of Rera is not up to the mark, the proportion of unregistered projects are very high. Most of these unregistered projects are defaulters in term of delay in completing the project or not fulfilling all the obligations listed in the sales agreement with buyers, said a member of Rera authority, who wished to stay anonymous.
These developers are trying to sidestep the act and the authority by not registering the project with authority. “It can be said that Rera has not been deployed in letter and spirit as was originally intended by the Centre,’’ said Anuj Puri, Chairman of property consulting firm ANAROCK. A senior Rera official said the authority has the power to issue notices to s defaulter developers and can send notice to them suo-moto to get their projects registered.
But most of the authorities are pro-active. In Karnataka, the second most active state in implementing Rera, the authority has sent notices to 100-130 projects in Bengaluru for not registering under Rera in 2017 while 953 project applications are still under investigation, according to a report. In total, in Karnataka 2,982 projects are registered with Rera.
Delay in project execution because of dilution of Rera, and the signal such dilutions send to the market, will act as a dampener on buyers’ confidence. This will affect developers’ ability to sell, Puri said.
Rajiv Sabharwal MD and CEO of Tata Capital said the quality of implementation of Rera would depend on the caliber of people who would head the authority in its initial years of implementation.