Guest Column
RERA Bill passage victory for sector, Anuj Puri, Chairman & Country Head, JLL India


While the recently-passed Real Estate (Regulation & Development) Bill has the potential of revamping the way the realty sector works across the board, a single-window clearance is needed now. Without that there may be cases where debonair delays by developers may still result in an unfavorable penalty. The time taken to get various clearances has afflicted developers for long. Without ensuring that the approval process is not delayed by civic agencies’ inaction, the regulator may inadvertently add another layer to the longer processes already delaying projects.
The passing of the long-pending Real Estate Regulatory Bill, which was being hotly debated and second guessed for far too long, is an unequivocal victory for the Indian real estate sector. Its enactment as a law will almost single handedly revamp the way this sector works across the board, from developers to end-users and investors, to lending institutions and government agencies involved in the buying and selling of property. It is by far the most decisive step the sector has taken towards transparency and reaching towards the kind of standardised processes, procedures and accountability guidelines that the industry requires to progress.
In December 2015, several amendments to the Bill suggested by a select committee of Rajya Sabha had been accepted by the Union Cabinet.
The amended Bill has now become a full-fledged law and paved the way to setting up a real estate regulator.
The real estate industry welcomes the major reform that promises to bring in much-needed transparency and accountability to the rather opaque sector. It will create a much-needed consumer right protection umbrella for buyers of real estate, thereby increasing consumer confidence as well as creating lasting developer brands strong on quality and timely delivery of their projects.
As there will be strict punishment for errant developers as well as fines for project delays and faster redressal to consumer complaints, the problem of unscrupulous elements in the industry will be addressed. Norms on size of projects had been relaxed from 1,000 sqm to 500sqm, and further reduction in size can be bought under the purview of the regulator by state governments.
A single-window clearance is needed now, without which there may be cases where bonafide delays by developers may still result in an unfavourable penalty. The time taken to get many environmental, state-level and municipal-level clearances have afflicted developers for long.
Without ensuring that the approval process is not delayed by civic agencies’ inaction or setting up a single-window system, the regulator may inadvertently add another layer to the longer processes already delaying projects.
The Central Government, on its part, has been working to streamline approvals as part of its focus on ‘ease of doing business’ and digitisation to achieve better transparency. This law will reduce volatility seen in this sector and build the trust deficit between both stakeholders – builders and buyers. RERA will provide a positive impetus towards achieving the housing dream while ensuring a level-playing field for developers and buyers.
With real estate having linkages to the largest number of industries, the incumbent Government has succeeded against various odds and given Indian real estate its most valuable card. The Bill is a verdict to end the age of information asymmetry, lack of accountability and unwarranted project delays, and marks the beginning of rising transparency, liquidation of assets – and, importantly, positive sentiment.
-
News4 weeks ago
Phoenix Mills, B Safal launch Palladium
-
News4 weeks ago
NoBroker expands its Series E round with Google joining other investors
-
News4 weeks ago
House of Hiranandani’s plogging initiative
collects over 100 kg waste from Thane city -
News4 weeks ago
Reliance Industries into Commercial RE
-
project4 weeks ago
Migsun Gp to invest Rs 706 cr to develop high-street commercial project
-
News4 weeks ago
Paramount Group gifts flowers, plants to workers of Paramount Golfforeste in Greater Noida
-
News4 weeks ago
Pragati Group raises $200 m from Singapore based fund
-
News4 weeks ago
Samtel Avionics MD & CEO, Puneet Kaura takes over as the Chairman, CII Delhi State