Rera stays a non-starter in 12 states and Union territories

As the Real Estate (Regulation and Development) Act, 2016, or Rera, completes two years today, about 12 states and Union territories are still in the process to bring the developers to book. Meanwhile, Maharashtra continues to lead in total projects registered. Rera was implemented on May 1, 2017.

As compared to a year ago, when Rera was largely a 'work in progress' in many states and Union territories, 22 states and six union territories have notified their Rera rules, out of which 19 states have active online portals. West Bengal has an active portal for its own real estate law.

Still there a mix of 12 states and Union territories where the regulation is still the ground is yet to be covered for the homebuyers to nail the realtors who violate the law. In Arunachal Pradesh, Assam, Kerala, Tripura, Lakshadweep and Puducherry the law has been notified but the website is yet to be launched. In Manipur, Meghalaya, Mizoram, Nagaland and Sikkim the Act is yet to be notified. West Bengal has its own regulation known as Housing Industry Regulatory Authority under which Rera has been notified.

"This rule has brought in positive changes in terms of transparency and credibility to the industry. What needs to be corrected is having 70% of the amount in escrow account, given there is liquidity crunch within the industry, especially after the IL&FS crisis," Niranjan Hiranandani, managing director of Hiranandani Group and National President of industry body National Real Estate Development Council told DNA Money.

As per data available, Maharashtra has the highest 20,718 number of residential projects and about 19,699 real estate agents registered with Rera. Gujarat is a distant second with 5,317 Rera-registered projects and 899 registered agents and agencies. Likewise, numbers are way low in the states of Karnataka (2,530 projects and around 1,342 Rera-registered agents) and Andhra Pradesh (307 Rera-registered projects).

"If we look closely into each of the states with active portals, project and agent registrations have been on the rise since November 2018," said Anuj Puri, chairman, Anarock Property Consultants.

Puri said even while buyers have been continuously fretting about the dilution of the rules notified, they are bestowing their faith in the law and coming forward in droves to register their complaints against faulty developers for a myriad reasons, including project delays. For instance, MahaRera has received as many as 6,631 complaints (as on April) since inception, out of which the state authority claims to have disposed of more than 64% of the complaints.

Post-Rera, a reconciliation forum was formed wherein approximately 80%-85% of the cases get resolved. Complainants have an option to either opt for resolution through this forum or by way of hearings.

However, there are cases wherein defaulting builders despite Rera summons and notifications to pay penalty to buyers, they are delaying payments or not attending hearings.

"Such people or realtors can't last for long. An ex-parte order can always be passed after providing a due opportunity to the developer. However, there will be good and bad people everywhere. Some are unable to pay the penalty or delay it even because of the existing liquidity crunch," Hiranandani said.

HANGING BALANCE

• 20,718 – Maharashtra has highest number of Rera-registered projects
   
• 5,317 – Rera-registered projects with Gujarat, a distant second