By Manoj Sai Namburu, Chairman and Managing Director, Alliance
Real estate sector, which plays a key role in driving the economy, had remained unregulated and lacked transparency and adequate consumer protection. With the enactment of Real Estate Regulatory Authority (RERA, there is a clear direction in protecting the rights of the consumers enabling faster decision-making and a revival of the real estate market.
The Real Estate (Regulation and Development) Act, which was implemented in the year 2016, came into effect in a number of states by May 1, 2017. Recent reports have shown that the real estate sector had surely seen an uptick post RERA implementation in states such as Maharashtra and Haryana where the notification and enactments have been made stringent and the state RERA teams have been seen fining real estate developers for delays or non-registration under RERA.
According to a report from CRISIL, Tamil Nadu was among the few states, which notified Tamil Nadu Real Estate (Regulation and Development) Rules in August last year that that prohibited developers from promoting their property in media without registration. It also mandated the real estate developers to mention the TNRERA Registration Number while advertising in media for their projects and the information will be updated on the portal on a monthly basis for the benefit of the homebuyers.
It has boosted confidence of the homebuyers and the sector has witnessed a steady growth in demand over the past few quarters. RERA has reinforced a belief in being open and transparent when communicating with the customers and to follow firm ethical business practices. It has managed to raise the awareness levels amongst the homebuyers on the facts they need to know about before buying a home.
RERA is an ongoing process with the primary focus on execution. Real estate developers have been able to overcome the initial hiccups and the developers are working towards a better and smoother implementation of projects under the regime. The sector has witnessed a substantial investment in upgrading their existing systems and technologies to ensure adherence to RERA rules and provisions.
There are few areas, which need to be improved under the RERA regime includes building the necessary infrastructure support to make it a comprehensive and centralized and easily accessible database for the homebuyers. The demand for single window clearance still remains at a nascent stage and needs to be speeded up to provide much needed impetus to the growth of real estate industry. A quick redressal mechanism and dispute resolution for the homebuyers can largely address the efficient and transparent execution of the regime across the country.
RERA will ensure better accountability and significantly reduce frauds and delays. It is an attempt by the government to balance the interest of homebuyers and real estate developers by bringing both of them under the purview of the Act.