The Urban Development Department is likely to extend the Real Estate (Regulation and Development) Act compliance deadline for at least a month, or if possible, two. Town Planner and Nodal Officer Gajanand Ram said on Sunday the State Government was very much aware of the difficulties being faced by developers, and was seriously thinking of giving them at least another month, and if possible then two, to come under umbrella of RERA, the last date for which was ending on Monday itself.
The Act which is considered to be the single biggest reform in Real Estate sector so far in country had compelled players of the sector to get their projects of last 10 years, be it completed or under construction, registered, failing to which could prevent them continuing their businesses. Pathetically, the Government had asked real estate players in State as recently as on July 26 to get registered by the end of this month.
The deadline of July 31 for getting projects registered under RERA had raised serious question on the fate of hundreds of unregistered under-construction projects, as any sale-purchase in those projects could be restricted thereafter.
“It is true that less than a week was not enough for some 1,000 builders in State to get registered under new regulation. However, we were getting our system prepared for registration process to start. It took long time and we could open up registration process only on July 26. But the Department is equally aware of the fact that five or six days were not enough. Hence, we are most likely to extend the date up to end of August, or may be end of September too,” said Ram.
Notably, the RERA has paved way for clear and transparent business in the sector, as it compels real estate developers to stand on the promises it makes to house buyers. The Act has also left almost no room for dubious or shady real estate developers to remain in the business, as large number of them have used real estate business to turn their black money white in past. Under the new law, the developers will have to disclose investments being made in any project, source of financing and mode of payments, expected completion time with little room to get deviated from it, and above all, promises made to the customer in projects. However, the fact is that only around a dozen of states have actually notified, as the Act can’t be commenced until the final draft rules are completed by states themselves.
“The government actually made joke of all of us developers by giving less than a week, as there are lot many things in two-page form by the department to fill. Most annoying becomes financial details of already completed projects and it is extremely difficult to come perfect with those facts,” said Jharkhand president of Confederation of Real Estate Development Association of India (CREDAI) Kumud Jha on Sunday.
