IMPACT OF RERA ON INDIAN SOCIETY
Advocate Kamal K Anand gives an overview of the Impact of RERA on various sectors
Impact on Promoters / Builders
• The builder will have to buy land, get all the necessary approvals and then only they can declare the launch of the project. The builders will have to get all the necessary clearances before they can start selling the project. The cost of the project for the developer will increase as now sales will start post-registration, so no pre-launches!
• For all the ongoing projects the promoters have a deadline of 31st July, 2017 to get their ongoing projects registered with RERA.
• The booking procedure will be completely revised under RERA. Crucial information like the stage wise time schedule of completion of the project (including every provision like water, sanitation, etc.) will have to be shared with the buyer. In fact, at the time of booking itself, the promoter will have to issue the allotment letter which contains all the above stated information.
• Every advertising collateral will have to carry the registration number of the project. The registration number will be obtained only after the project gets registered. For all kinds of advertising or promotion, the details like the developer’s background, projects launched by the developer in the past five years, the status of the ongoing project has to be shared.
• The promoter should also have the list of approvals and commencement certificate from the competent authority, failing which advertisement and sales related activities will be suspended. They would need all these documents while presenting the project to the customer.
• In case of any structural defect (like a quality compromise) or provision of promised services or any other obligations from the promoters end as per the agreement for sale, if brought to the notice within a period of five years, it shall be the duty of the promoter to rectify such defects without further charge, within 30 days.