There are so many laws in the country, do we need more new laws or is it time to properly execute the existing one? Often, more laws lead to greater red tape practices. So, after so many new laws and regulations how the realty market is actually feeling? RERA is one such big law which realty sector is trying to cope with. RERA’s registration deadline is ending on 31st Jul 2017 and some of the developers are finding it difficult to abide with the law.
“New rules have most definitely impacted the real estate players. There are also fears of cost rise as clearances could take more time than usual. It will be difficult to adapt for every developer, broker and even a buyer. Operating on multiple projects could also be a face up to the regulator as it would seek details of previous projects before sanctioning new ones. With the number of non-delivered apartments piling up, companies would need to clear the backlog before launching new projects”, says Mr Amit Wadhwani, Director Sai Estate Consultant.
Is realty market becoming difficult for the developers?
Experts believe that to some extent it is true that now the only genuine realty player will be able to survive. Another point is, even if the government has brought in RERA to clean the bad practices, the authority is going in the same hand, i.e. retired officers who were earlier part of the same system that was slowing down the work process. So, the problem of the developers remains there and there.
“Now RERA into the picture, developers are observing a big transition and RERA is guiding them how to do a business. Authentic and genuine players will survive with the RERA norms and happy with this real estate regulation, whereas small players will face little difficulty in terms of Finance, Escrow and separate accounts”, explains Mr Aniket Haware, Managing Director Haware Builders.
Another expert believes that India’s property market has for a while been anxious due to dishonest developers and weak policy. However, the new real estate law, which came into effect on May 1, is raising hopes again. The anticipation is that RERA will rid the system of many unreliable developers and give assurance to homebuyers as well as investors and help revitalize property sales.
Realty players are jostling to ensure they do not come unclean in front of the new legislation
New rules that changed the shape of the realty market
According to experts, the recent law that has changed the Realty market forever are:
- RERA: RERA, which came into force recently, has laid down a rigid framework which will change the way the realty sector runs in India. It aims to enhance lucidity, bring greater responsibility in the realty sector and set norms to protect the interest of all stakeholders
- GST: GST will reduce the cascading effect of tax burden on the end user and bring clarity in terms of how much I am paying and what I am paying for the services and goods. 6 to 8 months will be difficult to understand and adapt, but once we sail through we will understand it
- Insolvency Act: Impact of the Insolvency and bankruptcy code will be very constructive, resulting in a better management of companies in India. There will be better fiscal regulation among companies, which will ensure that all the creditors are paid on time. The policy bestows considerable power on the legal system to deal with harassed organisations
- Benami Act: The Benami Transactions (Prohibition) Amendment Act, 2016 lays down stringent rules and sets up a regulatory system to deal with disagreements arising from such dealings and charge penalties to augment the sector to make India an attractive investment hub.
