RERA at its core is a pro-consumer law and protects the interests of the consumer and that it will lay a good foundation for the entire sector
Ahead of the October 31 deadline, final touches are being given to the rules for the Real Estate Regulatory Authority Act that will govern the state's real estate and housing sector. "Over the past few months, we have had extensive discussions with all the stakeholders, and most of their concerns have been addressed. The rules will first be released in the public domain and it will come into effect after their objections and suggestions are looked into and discussed," said Shreekant Singh, Principal Housing Secretary of Maharashtra, adding that RERA at its core is a pro-consumer law and protects the interests of the consumer and that it will lay a good foundation for the entire sector. "We need transformation and cleansing," said Singh while addressing top developers on Friday at a seminar organised by industry-body—National Real Estate Development Council (NAREDCO).
The cleansing that Singh hinted at is already underway with many developers quaking in their boots at the prospect of facing stiff punishment for non-compliance of RERA rules, including the prospect of imprisonment for three years. "Our next generation doesn't want to do this business. They have come from Wharton and Harvard, not to be at the mercy of such laws," said Ashok Mohnani of Ekta World, adding that though RERA will eventually be good for the industry, the terms and period of its introduction is certain to bring huge pain to the developer fraternity.
Legal luminary Parimal Shroff put the situation in perspective. "These are stressful times, and the liquidity situation has not been so bad in the past 40 years. There's no faith in the system and people don't trust under-construction projects, sometimes for no fault of the developer," said Shroff, adding that if RERA comes into effect when the industry is undergoing such a rough time, it may well be the death knell for many developers. "If not a grinding halt, RERA's introduction will bring the real estate sector to a standstill during the initial adjustment period," said Shroff.
Right to Information or Right to Extortion?
While approvals are faster to come by, unscrupulous elements are causing huge delays in real estate projects by filing RTI queries with the intention of extracting money from developers. "Blackmailers in the guise of activists are a menace to the business," said a leading developer at the seminar, adding that even after being in the right with all the permissions and approvals, the builders buckle under their pressure to avoid the huge costs associated with delays due to litigations.
Another developer revealed that it is the modus operandi of 'activists' to harass developers by repeatedly filing bogus complaints to various departments, courts, etc., and attempting to stall a project any which way. "These persons continue such harassment techniques till the time the developer is tired of explaining his genuineness to every forum, and agrees to pay off to such persons," said the developer.
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