KOCHI: With the constitution of Kerala State Real Estate Regulatory Authority (KRERA) on Friday, promoters will now require prior approval of the authority before announcing projects in the public domain.
A three-member committee has been constituted, with the former chief town planner, Ajay Kumar, as its chairman. As of now the chairman and one member has been appointed.
Speaking on KRERA, Ajay Kumar said, “Our operations have begun in the new financial year. Only projects approved by the authority can be put for sale. The client or buyer should be able to get all the details regarding the project.”
“Though a committee has been set up, there is a lack of clarity regarding its functioning. We hope when the new government takes charge, the process of registration will be fine-tuned,” said L Gopakumar, vice-chairman, Indian Institute of Architects (IIA), Kerala chapter.
KRERA has been set up to ensure transparency while developing and promoting real estate projects.
The promoters have to publish the details of approvals on their website and give updates on the progress of the project. It will become nearly impossible for promoters to divert funds available for a particular project for other purposes. This regulation would be beneficial for consumers.
“Only genuine and serious promoters will remain in the business. They will also be interested in getting the KRERA registration,” said Credai president Paul Rajan.
Meanwhile, Gopakumar pointed to the flip side. “When the process of receiving approvals becomes cumbersome, the cost of the project would also go up. There will be very few builders or promoters left. About 80% of the builders will be forced to make an exit,” he said.
Credits ET Realty