Skip to main content

Post­ RERA changes made in agreements: survey

By
 Post­ RERA changes made in agreements: survey
While 45% of the developers don’t have a proper mechanism for RERA compliance yet, there have been significant changes made to customer and vendor agreements
RERA Act is changing the entire landscape of the real estate sector and redefining the process of how real estate sales happen in India. Every stakeholder, right from the government, bankers, private equity to consumers, are unlearning the old ways of operating and aligning to the new systems/processes which are RERA-specific
According to Navin Raheja Chairman, FICCI Real Estate Committee, “RERA, which came into force from 1 May 2016, is now seen as one of the most significant reforms in the real estate sector.
According to RERA, all the state governments were to put in place the Act’s rules and regulations for their respective states by May 1, 2017. The Government of Karnataka has notified their rules in July 2017.”
As per the latest survey on RERA, 45 per cent of the real estate developers have no formal process in place to manage compliance mechanism of RERA. The survey report by Grant Thornton in India and industry body FICCI, reveals that majority of the board and senior management (78 per cent) of real estate companies are using common methods like excel based MIS (Management Information System) reporting to review RERA compliance.
According to Neeraj Sharma, Director, Grant Thornton Advisory Private Limited, “Like any other major reform, RERA has its own sets of initial challenges, which are causing disruption in the sector. However, everyone including the developer fraternity is positive about the longterm impact of RERA. The survey has pointed out some very interesting perspective on how developers are gearing up for this big change and making appropriate changes to their systems and processes in addition to identifying areas where more focus is needed.”
When asked about the initiatives taken to strengthen project planning for timely completion of projects, more than 50 per cent of the respondents expressed that a focused approach to enhance skillsets of internal teams with trainings is crucial. In fact, over 75 per cent developers have used training as a tool to improve customer experience. However, 37 per cent respondents felt the need to hire independent experts as Project Management Companies (PMCs) to manage their projects.
Post RERA implementation, where are the positive changes seen?
As per the survey, more than 70 per cent of the developers have made changes to the customer and vendor agreements. Significant changes have been made to the Agreements, with the developer and vendor now sharing equal liabilities under the contract. M
How has RERA been implemented across states in India? The state with best response to RERA has been Maharashtra where 12,000 real estate projects are registered till date, and 350 complaints filed. This is followed by Karnataka where 1900 real estate projects have been registered, Uttar Pradesh with 730 and Haryana with 400 projects registered.
Punjab, Rajasthan, MP, Gujarat and Maharashtra are states where RERA regulator is appointed and portal launched. However, the RERA rules have not been notified in the states of Goa, West Bengal and states in the North East belt
The Hindustan Times, New Delhi, 10th March 2018
 

Comments

Post a Comment

Popular posts from this blog

Govt’s gamble on GST cuts: What do the bond and currency markets signal?

By
  It’s not just humans who suffer from cognitive biases; markets do too. Interestingly, different financial markets exhibit distinct biases, each interpreting events through its own prism of prejudice. Take the recent announcements on GST reforms: equity markets have chosen to view them through the lens of growth, while bond and currency markets are focusing on potential macroeconomic risks—fiscal pressures and current account challenges. So, which lens captures the true pulse?Equity markets may be right in expecting GST reforms to revive consumption, which has remained lacklustre for a while. But the key question remains—will this revival come at the cost of broader macro stability?It is well known that consumption stocks have rallied since the GST rationalisation announcement. But what about bond markets? What signals are they sending since this rejig was announced from the ramparts of the Red Fort?The signs aren't encouraging. Bond prices have slumped and yields have surged sinc...
Post a Comment
Read more

Luxury carmakers urge clarity on GST rates to boost festive season sales

By
  A clear picture regarding new GST rates at the earliest will help the overall auto industry, including the luxury car segment, to regain momentum in the ongoing quarter, which generally sees enhanced sales on account of the festive season.The high-powered GST Council, chaired by Finance Minister Nirmala Sitharaman, will meet on September 3-4 to discuss moving to a two-slab taxation.In an interaction with PTI, BMW Group India President and CEO Hardeep Singh Brar said the recent speculation about the change in GST rates has caused uncertainty in the minds of consumers.Consumer interest and demand is strong, but they (prospective buyers) have adopted a wait-and-watch approach, and this delayed decision-making is impacting new vehicle sales at a certain level, he noted."Expediting clarity on GST rates is essential to get back to speed and ensure the auto sector's contribution to economic growth during this quarter is robust," Brar stated.He also hoped that the sustainable p...
Post a Comment
Read more

Sebi proposes tighter norms for green bond third-party reviewers

By
  Sebi on Friday said it has proposed to tighten the norms to appoint independent third-party reviewers or certifiers for green debt securities to align them with requirements for other ESG-linked bonds.In a draft circular, Sebi said that the current norms for green bonds, introduced in February 2023, lack detailed requirements around reviewer independence, conflict of interest mitigation, and disclosure standards that are now in place for other ESG-linked securities under a June 2025 circular.The regulator's latest proposal seeks public comments on a revised framework that would bring parity by incorporating comprehensive criteria for third-party certifiers of green bonds on non-convertible securities.Under the proposed norms, issuers of green debt securities will need to appoint reviewers who are independent of their management, directors, and key managerial personnel. These reviewers will be remunerated in a way that prevents any conflicts of interest and possess relevant expert...
Post a Comment
Read more