Amid apprehension on the ‘adverse’ impact of the implementation of Real Estate Regulation Authority (RERA) Act-2016, it has been described as one that would bring about transformation in the real estate sector’s work culture, transparency and discipline.
Addressing a workshop on the Act organised by CREDAI, Visakhapatnam chapter, senior advocate from the High Court M.V. Durga Prasad said builders should guard against their vulnerability as once they register on the website and open a bank account to deposit 70 per cent of money collected, their dealings would be in public domain.
The State government has to constitute the RA and tribunal and frame rules within one year of passing of the Act by Parliament. The workshop was organised keeping the timelines in view. Mr. Prasad said many of the provisions were contained in AP Apartments Act but timelines, disclosure of project details on the web page allotted to it, title insurance and collecting only stipulated amount at the time of booking were among the provisions of the Act. Since the data would be in public domain builders were vulnerable. They should keep their books clean and develop their own ethics for staying in business, he said.
Mr. Durga Prasad cautioned builders against complacency in title insurance as their liability would be unlimited. The penal provisions if the builder fails to complete the project were stringent and could affect goodwill earned all through the life, he warned them.
Though the State government officials were not brought under the Act, transparency would bring accountability. Since the State government had to appoint the Competent Authorities builders could seek creation of single window for clearance and relaxation in other provisions, he suggested.
However, big players and FDIcould hit the average builders hard, Mr. Durga Prasad said advising them to think of floating their own trust to raise funds.
Stating that in any industry customer was the king, Municipal Commissioner M. Hari Narayanan hoped at the right time government would bring new Acts.
Courtesy The Hindu