NEW DELHI: Despite the real estate regulatory bill getting notified, resentment prevails among real estate developers on the absence of single window system for getting mandatory clearances from the various central and state authorities.
Industry participants say lack of a single point approval process would in turn lead to an increase in home prices.
Demanding single window system for the real estate sector, Parveen Jain, President of builders body National Real Estate Development Council (NAREDCO) said the Act is meaningless without this provision. “The the new Act favours consumers at the cost of builders and developers who play an important role in the GDP growth,” he said, adding, “The onus of success of RERA depends not only on builders or consumers but also the Central and State authorities.”
Sanjay Dutt, Managing Director, India, Cushman & Wakefield, said, “While the government will place initial blocks for a regulator in the Indian real estate sector, it is imperative that all states adopt a single-window clearance system for construction projects in order to build developer confidence.”
Builders also asked to bring the agencies issuing permits under the law and made accountable for undue delays.
It takes 2-3 years on an average to start a project after land is acquired. By this time the cost of land rises by 24-30% due to hefty interest payments as bank loans are not available for procuring important raw material in this sector, according to Amit Modi, Director ABA CORP and Vice President CREDAI western UP. “The added cost ultimately gets passed on to the customer.”
The Real Estate (Regulation and Development) Bill, 2016, became an Act on May 1 and the centre notified 69 of the Act’s 92 sections. The central and state governments are now given six months – by October 31 – to formulate the guidelines for implementing the provisions of the Act.
Manish Agarwal, managing director, Satya Group said, “We will still have to wait for the respective states to establish real estate regulatory authorities to fast-track the reform process.”
The Act aims to protect the rights of home buyers and bring the much needed transparency in the sector, thereby increasing the consumer and investors’ confidence.
Credits ET Realty