The Ministry of Housing and Urban Poverty Alleviation has put out in the public domain draft rules of few sections of the Real Estate (Development and Regulation) Act, 2016 in five Union Territory
Project status updates
The promoter will be required to upload updates on the webpage of the project within seven days detailing all the aspects of the project and their information.
That is great in terms of the information provided to the buyer, but for all the new projects, the developers incorporate these details in the buyer’s portal or their mobile application
“The fee proposed for registration of projects with the Regulatory Authority is Rs.10 per sq m if the plot area is below 1,000 sq m and Rs.20 if the area for development is more than that for residential projects and ₹50 and Rs.100 per sq m for commercial projects,” it said.
This fees is going to be indirectly passed to the buyer, while the authority is not going to be able to do much in case in issues which lead to approvals, which are indirectly drafted by the city.
Moreover, the promoters of all ongoing projects that have not received completion certificates shall apply for registration of projects within three months.
Penalties for promoters
In case of project delay, the promoter and buyer will be liable to pay the State Bank of India Prime Lending Rate plus 2 per cent, which is great, but its what the developers do provide to the buyers.
This is going to impact additional costs to the buyer. Adding to the list of regulations, and costs passed to the buyers. In whole adding a list of fresh regulations is just going to be a waste of time and money and according to us competition is what keeps the companies more healthy.
What RERA should do:
With more and more Real estate portals spawning up, they should make a strategic relationship with one of the portals and try to make them in charge of the developers information, as most of the developers and buyers are informed about the projects through these portals. In case of developers failure to comply with certain issues, the portals information will provide great impact on the developer’s project.