Home-buyers seem to have found their voice, finally. In the backdrop of recent news-flow about builders getting arrested and courts offering no sympathy while delivering verdicts, home-buyers have gained the confidence to fight back.
It’s a welcome change from we have been witnessing over the years. And this will continue to gather strength as more troubled and misled consumers come forward to raise their voice.
We can experience the change clearly as home-buyers, who had no courage to step forward against the malpractices of builders, are now filing cases against them with police and taking help of judicial system. Courts across the country are also ruling in their favour and this has revived their faith in the system too.
At policy level too, the support has never been so good. The government is also moving swiftly to make policies that would support transparency and clarity in the real estate sector, known for its opaque nature thus far.
ReaI Estate Regulatory Act or RERA is one such key step in right direction. It paves way for setting up a regulator to offer buyers protection from unscrupulous activities. Tussles over project delays are likely to come down as 70% of the amount collected from home buyers will need to be deposited in an escrow account to be used only for that specific project.
RERA envisages the formulation of a regulator for the sector to promote fair play in transactions, ensure timely execution of projects and protect the interest of consumers. It mandates the registration of real estate projects and directs developers to outline duties and role of promoters and also stipulates penalties for non-compliance.
The developer cannot make any changes to the plan that has been approved and disclosed to buyers without the written consent of two-thirds of the buyers of the project. Development firms will have to pay interest for any default or delays at the same rate that home buyers are charged.
While there are few things that still need clarity including the threshold date for existing projects to come under RERA, it is moving in right direction making home-buyers confident and raise voice against the mighty that refused to bow down earlier. The tide is certainly turning!
Author: Kailash Babar
Credits ET Realty