The deployment of Rera across India is increasing as around 46,480 projects and 36,671 real estate agents have been registered under Rera as on November 2019.
A lion’s share of Rera registered properties in the country are shared by Mumbai and Pune. Maharashtra tops the chart in the country when it comes to Rera registered properties and within Maharashtra. Over 90% of the projects registered with MahaRERA are based in Mumbai and Pune.
“Maharashtra remains the blue-eyed boy of Rera implementation. So far, Maharashtra has seen registration of 22,885 projects and 21,869 agents and is way ahead of the other states,” said Anuj Puri, chairman, Anarock Property Consultants. “Maharashtra is among the largest in terms of real estate development and the successful implementation of Rera is, in itself, an accomplishment. The gradually improving performance of the state’s real estate sector sets the benchmark for other states to emulate.”
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The deployment of Rera across India is increasing as around 46,480 projects and 36,671 real estate agents have been registered under Rera as on November 2019. Maharashtra had 22,885 registered projects and 21,869 registered agents.
Pune has seen a rise in Rera-registered developers. Take for instance, CREDAI-Pune Metro is hosting a property show in Pune and has 63 developers showcasing 600 RERA projects in the Pune region. Jones Lang LaSalle Property Consultants (India) chief economist and head of research Samantak Das said the best implementation of Rera so far had been in Maharashtra and it was not just about data dissemination through website, it had gone beyond that. There was faster resolution of cases now and what used to take years to resolve was done in a matter of few weeks, added Das.
According to CREDAI-Pune Metro vice-president Manish Jain, who is also managing director of Kumar Properties, MahaRERA, with the assistance of CREDAI, has been able to solve 162 disputes in a year. Jain said majority of the disputes in projects were resolved through conciliation. A lot of the problems arose when projects transitioned to Rera and these would get sorted out, said Jain.
CREDAI-Maharashta is one of the developer bodies appointed by MahaRERA as Self Regulatory Organisation (SRO) and registration with the listed SROs has been made mandatory. The SRO has created awareness about RERA regulations, guidelines and ensure that the developers follow these rules. Currently, there are 589 members of CREDAI-Pune Metro of which 399 are ordinary members and 190 associate members.
Aditya Javdekar, CEO of Vilas Javdekar Developers and secretary, CREDAI Pune, said the SRO concept would evolve and they would be looking at bringing more unorganised players into the organisation. Earlier CREDAI had no teeth but with SRO, we would play a proactive role to achieve self-regulation, Javdekar said. “It would take time but this process would ensure that the right kind of developers get in.”
“SROs are meant to infuse a significant measure of accountability, with the intention of ensuring higher compliance with RERA guidelines. Some homebuyer groups have expressed misgivings about SROs’ effectiveness. That said, SROs are not intended to supersede Rera’s regulatory authority but to add a layer of internal governance to ensure that Rera is complied with. If developers’ accountability is not diluted by such bodies, they can certainly be effective,” said Anarock’s Puri.
Apart from CREDAI, National Real Estate Development Council, Builders Association of India and Marathi Bandhkam Vyavsayik Association are the other SROs in Maharashtra. The progress of MahaRERA and its ability to ensure compliance by developers and redress customer complaints with help from SROs will be watched closely and could become the template for the rest of the states.
“Self-regulation can be effective as long as the self-regulatory organisations are accountable to a larger authority. Also, as the industry is moving towards formalisation, any efforts to educate all real estate stakeholders – especially developers – about the new regulatory requirements and expectations are inherently good,” Puri said.
“We can probably expect a lot more from SROs formed in the post-RERA era. Developers now have much to lose by acting contrary to RERA’s stipulations, and much to gain from complying with them. Such a self-governance mechanism can be very effective if accountability itself is not diluted,” Puri said.