Only 19 states and Union territories have an online portal in place and five states and Union territories have a permanent real estate regulatory authority
The Real Estate (Regulation and Development) Act, 2016, or Rera, was to be implemented all over India by May 1, 2017, but a year after that deadline, the new Act remains a work in progress in many states.
"Only Maharashtra, Madhya Pradesh and Punjab have a permanent Rera regulator, which is active. A lot of work has been done, hearings and orders have been passed. In many other states there is an interim authority and not in the shape as it should be," said an industry expert.
The Act to protect customers' interests and to impose penalties on errant realtors was passed by the parliament in 2016.
Thereafter the Union Ministry of Housing and Urban Poverty Alleviation gave a year, till May 1, 2017, to formulate, notify and set up a regulator. However, plenty of ground is yet to be covered by several states.
Several states, including Uttar Pradesh, Haryana and Bihar and Union territories, have opted for an interim authority, which is basically a temporary regulator.
On the other hand, West Bengal, Kerala, North Eastern states and Jammu & Kashmir haven't notified the Act.
"Not much of residential related development happens in the North East states, whereas Jammu & Kashmir comes under special status, so this won't be applicable," Pankaj Kapoor, founder and managing director of Liases Foras, said.
In Delhi, the government-owned developer, Delhi Development Authority, itself, has been appointed as a regulator.
"Only 19 states and Union territories have an online portal in place and five states and Union territories have a permanent real estate regulatory authority. So far 27,000 projects are registered under various state Rera while 17,000 agents are registered under Rera," said Ramesh Nair, chief executive officer and country head, JLL India.
In the last one year, around 70-75% of under construction housing supply has been covered by Rera, with Maharashtra having the highest number of projects followed by National Capital Region. Since these two regions see most of the construction activity most of the projects have come under Rera.
Ashok Mohanani, vice-president, National Real Estate Development Council (West) said that Rera has consolidated the developers, encouraged more joint ventures, leading to small developers collaborating with established players resulting in standardisation and improvement in processes, which would increase only in the months to come.
However, Kapoor has a different view.
He said, "It is providing level playing field for small to large developers. If a small developer follows the set of rules, s/he will survive and even the funding sources would widen, thereby not needing to consolidate with larger players."
In Mumbai, where land is scarce, numerous re-development projects have been happening for decades, Rera doesn't cover re-development and slum rehabilitation projects. On Tuesday, Maharashtra chief Minister Devendra Fadnavis agreed to the need of including them under Rera, but no timeline has been set for it.
The perception is that Rera is for the benefit of home buyers, which Aarti Harbhajanka, director, KPMG India disagrees, according to her, "MahaRera is evenly placed and has even resolved cases related to developers."
Though there are differences in opinion within the realty industry on Rera being more favourable towards home buyers, it is unanimous that either the sanctioning authorities should be brought under Rera or there should be a separate rules for the timebound approvals from civic bodies and other government authorities.
Several project completions get delayed due to clearance related issues.
"We cannot do much or else our other files may face some other issue. We are heavily dependent on sanctioning authorities," said Vijay Wadhwa, chairman, The Wadhwa Group.
FINDING THE REGULATOR
- Only 19 states and Union territories have an online portal in place and five states and Union territories have a permanent real estate regulatory authority
- So far 27,000 projects are registered under various state Rera while 17,000 agents are registered under Rera
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "Rera")
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}