Breaking News

Sponsored Links

Deadline will not be extended, says Karnataka RERA Chief Kapil Mohan

Sponsored Links

RERA is going to add more value to the business as well as the buyers in the long run

Bengaluru, Aug 1 2017 Karnataka’s RERA authority chairman, Mr. Kapil Mohan, stressed that the deadline for builders adhering to the July 31 deadline for getting real estate projects register with the RERA Authority under the Real Estate (Regulation and Development) Act, 2016, will not be extended and hoped that much needed Act will ring in an era of transparency and credibility in Karnataka’s real estate industry.

Mr. Mohan, who is also the Principal Secretary to Government Housing Department, Karnataka, during last week’s Bengaluru edition of ‘Magicbricks Real Estate Dialogues’ said that RERA will be a disruptive act for the industry and it is the need of the hour.

Hosted by India’s No.1 property site, the Bengaluru edition of ‘Magicbricks Real Estate Dialogues’ brought together some of the real estate stalwarts of the regions to discuss “Are developers in Bangalore RERA ready” to mark the setting of RERA authority in Karnataka.

Besides Mr. Mohan, the other eminent panelists were Mr. Irfaan Razack, Chairman, Prestige Group, Mr.Ramani Sastri, Chairman, Sterling Group, Mr. Shankar Sastri, Co-founder, Sterling Group & President, CREDAI, Karnataka, Mr. J.C. Sharma, Managing Director, Shobha Developers, Mr. Anup Shah, Senior Advocate and Mr. Ashutosh Kapoor, Director (Governance, Risk &Compliance Services), KPMG in India.

“RERA will be a disruptive act for the industry and it is the need of the hour. There may be initial hiccups but once implemented it is bound to bring in long awaited transparency and credible systems in the industry. It is only going to add more value to the business as well as the buyers in the long run. We the RERA authorities are here to support and effectively help the developers overcome the issues and follow the act,” said Mr. Mohan.

Mr. Mohan went on to add that it is difficult to make an intrusive Act such as the RERA.

“Challenges of misconception in the minds of stakeholders and its adaptation to state laws are being looked into. It takes about an hour to an hour and a half to upload project details on the website. As many as 6,000 responses were studied and after extensive legal bureau testing we came up with the present set of laws. We are working to help developers get OC/CC for their projects in time from government departments. We have not deliberately notified some sections because needed some time to look into them. We are not going to extend the deadline till we receive any change or notification from the Central Government. For now we will penalise those who are not registered under the act,” he added.

While concurring with Mr. Mohan on the importance of the RERA Act, Mr. Razack, Chairman, Prestige Group, felt that July 31 was a too small window for developers to get registered.

“Uploading all the project details by July 31 is a too small a window for developers to comply with, especially the ones who are not tech-savvy. We have to accept the law as it is, the sooner we accept it, the faster the challenges will vanish. At the same time, getting approvals from relevant government departments is a hassle. They too should be made responsible so that they too have their timelines to approve a project,” said Mr. Razack.

Mr. Shankar Sastri, who is also the President of CREDAI Karnataka, feels that RERA will ensure a level playing field for all developers.

“With 230 members in Bengaluru and 600 across the state, CREDAI Karnataka has a code of ethics in place. RERA has emerged as a great level-playing filed for all stakeholders. Undoubtedly, the time to register a project is short but the Act will make life simpler for many, including CREDAI because now the developers too will seek redressal through the authority,” he said.

Mr. J.C. Sharma, Managing Director, Sobha Developers, said: “Anything that is introduced gets tedious in the beginning. Since the Act was notified, we started working on it. We have registered our projects and are in the process of doing so.”

Mr. Ramani Sastri, Chairman, Sterling Group, said: “Small-time non-serious players are an issue for established developers. The maximum number of violations happen in below 500 sq m area (which has not been covered under RERA). All cumulative baggage of (wrongdoing in) the NCR has come on the fraternity. The good part is that every developer will now fall in line. But there should be a diktat for all the bodies that regulate our business. A developer has to entertain eight government departments before he can start his project, including NGT, fire and power. A lot of smoothening of process has to happen within government departments so that a developer gets his approval within 30 days.

Mr. Anup Shah, Senior Advocate, said: “As most of the developers are not tech-savvy and penalty is huge, I hope the government will take a lenient view in the first couple of months. Few people getting together for a cause which may not be right may lead to a problem for others. So, the government must come forward and help developers register their projects. RERA is a great Act and it will bring greater transparency into the system and help real estate business flourish.”

Mr. Ashutosh Kapoor, Director (Governance, Risk and Compliance Services), KPMG in India, said: “RERA is the new norm of doing business – from conceptualizing to delivering a project. While RERA registration is mere the stepping stone, the real journey starts after that. Anything mislead to a customer by the staff of a developer can lead to a lot of problem for a developer at a later state. Since there is no precedence, the orgainsation and staff need to be sensitized on how important their role was in the RERA-compliance journey.  The mindset will have to change on how people conduct their business.”

Mr. Ritesh Mohan, National Sales Head, Magicbricks, said: “With RERA there is no clarity on what needs to be done in the interim for the ongoing projects. From May 1 to July 31, there are conflicting views from state to state and authority to authority. With a lot of confusion on the ground on the marketing of a project, the industry is suffering. This may affect the cash flow and business cycle.”

Sponsored Links