The Real Estate Regulation Act, 2016 will bring transparency and authority in doing real estate dealings and hence will reduce the litigations going forward, according to a Ficci-Grant Thornton Report.
The survey-based report, released on Wednesday, said a majority of respondents also felt that RERA will boost the governance hold on the sector. It will eventually lead to increase in FDI into the sector in near future. It will also improve the ease of availability of financing options in the market.
A major outcome of the survey is that industry feels that the rule of depositing 70 per cent of sales proceeds in a separate account will help in getting timely delivery of the project and eliminate fly-by-night operators in the real estate.
The report was released by Dilbag Singh Sihag, of RERA Haryana Committee &former Chief Town Planner of Haryana; Neeraj Sharma, Director, Grant Thornton Advisory; Navin M. Raheja, Chairman, Ficci Real Estate Committee; and A. Didar Singh, Secretary General, Ficci, at a conference on RERA organised by Ficci and Grant Thornton.
The report states that under RERA, the developers might need some time to get used to its provisions and complexity of its rules. The move by the developers to comply by the provisions of RERA might push prices upwards in the short-term. But one can expect stabilisation due to the efficiencies brought in by the RERA. It will not only help in expediting the completion of the on-going projects but also immunise buyers from any fraudulent practices.