As the date for Real Estate (Regulation & Development) Act (RERA) approaches, homebuyers who have invested in delayed realty projects are looking at provisions that can be beneficial to them.
As the date for Real Estate (Regulation & Development) Act (RERA) approaches, homebuyers who have invested in delayed realty projects are looking at provisions that can be beneficial to them. Although many developers have accelerated the pace of work in order to get completion certificates for their under-construction projects before May, what remains to be seen is whether it will help buyers in delayed projects, especially in the Noida and Greater Noida region.
“The countdown for the implementation of the realty regulation Act has begun and with the deadline of May 1 approaching fast, developers have accelerated the pace of work in order to get completion certificates for their under-construction projects before May Hence, we believe that its implementation will impact buyers in Noida and Greater Noida more than anywhere else in NCR as it hosts maximum end users hence the entire industry is set to gain from it and it will also help to attract more buyers in the region,” Amit Modi, director, ABA Corp and vice-president CREDAI Western UP said.
The major causes for delay in real estate projects vary from issues in funding, and financing of the projects for the developers to delays in getting regulatory approvals and the overall market volatility and weakening demand. Not all causes for delay are due to developers. There are some which are delayed in getting regulatory approvals.
“In most states, real estate developers are required to get 40-70 approvals before starting a project. Currently, realtors have to seek approvals from National Highways Authority of India, the pollution department, the ministry of environment, Airports Authority of India, labour ministry, Central Ground Water Board and Directorate General of Civil Aviation among many other sub-departments. Clearances from the water department, electricity board, coastal regulation zone tribunal, sewage department and fire department are also required before starting a new project. Local bodies’ inspection and frequent changes in local laws add up cup of woes,” Modi added.
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Modi added that there are 86 under-construction group housing projects in Noida, 95 in Greater Noida and 13 in Yamuna Expressway area that are behind schedule and these delays in possession has affected market sentiment and hit the sector badly and now the only solution is to give possession as early as possible.
The real estate regulatory authority (RERA) that is likely to be formed in Uttar Pradesh soon will not benefit homebuyers who have invested in realty projects that are currently stuck. “RERA will not be able to help homebuyers wherein they have paid the total flat cost but the developer is unable to execute delivery due to cash crunch. In Greater Noida, around 3.5 lakh homebuyers are still yet to get possession of flats that were to be delivered
from 2012. As per RERA rules, only ongoing projects for which occupancy certificates are to be issued by the respective authorities will be governed by RERA, ” Modi said.
According to the RERA every ongoing project, as well as projects which are still under construction, are supposed to come under its ambit.
When asked about how RERA can help homebuyers who are still awaiting the possession of their flats/ or whose projects are delayed, NAREDCO’s President Parveen Jain said “This shall depend in detail in terms of particular situations, time frames, location of projects in which state or area etc. and what is applicable and to be followed accordingly.”