The new law calls for a change in business model to bring in standardisation and systematic urban planning.
Various state governments are now framing rules for implementation of the Act and constituting the Rera with which developers have to register all their projects. The new law calls for a change in business model to bring in standardisation and systematic urban planning.
Developers will not be able to do theatrics like soft launches, pre-launch and 70 per cent of funds shall route through ESCROW account, which will utilise in completion of projects. Those who violate the orders of Rera appellate tribunals may have to face a jail term of up to three years, with or without a monetary penalty. To counter flaws in construction, the Act will hold builders liable for structural dam- ages for a period of five years from the date of handing over possession.
The law will be applicable both on commercial and residential projects, and all realty agents should be registered with the Real Estate Regulator Authority. It also seeks mandatory disclosure of all registered projects, including details of the promoter, project, layout plan, land status, approvals and agreements along with details of real estate agents, contractors, architect and structural engineer.
In today’s environment, transparency and credibility are the most cherished value of corporate governance. They assume even greater significance in the real estate sector as projects costs are high in value and fundamental in development of communities.
While legislative framework is essential to instil good values of corporate governance, self regulation by developers will be paramount to make the country a priority investment destination. Developers,
agents and the buyers must work in tandem so that the real estate industry in India works like in other developed countries for economic growth and overall prosperity of the people.
Source: PressReader
