RERA should be exclusive legal forum for real estate complaints: CREDAI


The government should bring about amendments in laws, to make the RERA the first forum for complaints pertaining to real estate, industry body CREDAI has said, at the National RERA Conclave

The need of the hour, is to bring in amendments, to make the RERA the first forum for complaints pertaining to real estate, Satish Magar, president, CREDAI national, said. Magar was speaking at the first-ever National RERA Conclave, organised by the Uttar Pradesh Real Estate Regulatory Authority (UP RERA), along with the government of India and government of Uttar Pradesh. The Conclave focused on crucial aspects of the real estate sector, including present day issues, growth strategies for revival of the sector and means to strengthen the RERA, as a one-stop solution for all real estate matters. 

Jaxay Shah, chairman, CREDAI national lauded RERA on its efforts to institutionalise and organise the real estate sector. “We congratulate RERA and its members, for all the tireless work which has gone into strengthening and enabling the real estate sector. With the current economic slowdown and issues like liquidity crunch and rise in insolvent projects due to unregularised cases in the NCLT, it is pivotal for the industry to stand together and address the concerns and look for solutions,” he said.

Magar pointed out that about 450 real estate companies/projects across the country are facing insolvency proceedings, under the Insolvency and Bankruptcy Code, which was creating a distress situation in the sector. “The need of the hour is to bring in amendments, making RERA the first forum for complaints,” he said. By giving supremacy to the IBC over the RERA, the very intention of the legislature enactment of the RERA has been defeated. RERA can be empowered, i.e., in any case any allottee being a financial creditor, has any issue with the real estate developer and the first remedy available should be RERA, he explained.

At present, factors like deceleration in demand owing to lower GDP growth and liquidity crunch faced by developers, are affecting healthy projects. In order to revive the sector, a one-time restructuring of loans, for all long-term viable projects, should also be introduced, he added.

 

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