Business
Homebuyers’ body demands setting up of Rera Monitoring Committee – Times of India
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NEW DELHI: The largest body of homebuyers has demanded setting up of a Rera Monitoring Committee (RMC) while flagging how real estate regulators (RERAs) have failed in effective implementation of the real estate regulation law. It has cited how several housing projects have not been registered despite the mandatory provision and also delay in completion of projects which started after the central law came into effect.
The Forum For People’s Collective Efforts (FPCE), which had campaigned for the RERA law, has referred to the findings and recommendations of the Amitabh Kant committee set up by the housing ministry to seek greater monitoring of regulators’ performance. It has suggested that the committee may be requested to holistically look into all the issues of the real estate sector and recommend the steps needed to be taken to ensure that situations like delayed projects don’t arise in future.
In a letter addressed to housing minister Hardeep Singh Puri, the FPCE has urged that the RMC should be composed of homebuyers, distinguished independent individuals and reputable non-profit organisations. “This committee should exclude any involvement of builders or their organisations. The RMC’s primary role would be to scrutinise the deviations, operational practices and overall functionality and intent of the RERA authorities, ensuring they are aligned with the true spirit of RERA implementation,” it said.
Referring to the high-powered committee’s recommendation of “mandatory registration with RERA” of all real estate projects, the FPCE said the promoters were legally obligated to register their projects as per the central law.
On the panel’s observation that developers were required to maintain and provide detailed records related to the project, which include financial statements, legal documents and construction status reports, the FPCE said promoters were not adhering to the mandate of updating project information every quarter and the regulatory authorities were not taking adequate actions to enforce this requirement. “Instead of imposing penalties for non-compliance, they seem to be only issuing notices after a significant period of default, which is certainly inadequate enforcement,” the homebuyers’ body said.
The FPCE has also said the committee’s recommendation, which includes projects that were started after the enactment of RERA and delayed by more than two years, can participate in the state government/ RERA led resolution process suggests that even projects initiated after the implementation of the law are experiencing delays and issues. It said this again raises doubts about the effectiveness and functioning of RERA in preventing project delays and ensuring timely completion.
On the recommendation that a fresh three-year extension may be given to all projects at no payment to authority, the homebuyers’ entity said the proposed extension does not consider timeline needed for completion of projects on a case to case basis which in many cases may be much less than three year period.
“It also lacks a compensatory provision for suffering homebuyers. This could potentially offer relief to builders but at the detrimental cost and continued suffering of homebuyers who have already endured prolonged project delays and an additional three year extension without any compensation may completely break them both financially and mentally,” the FPCE said.
The Forum For People’s Collective Efforts (FPCE), which had campaigned for the RERA law, has referred to the findings and recommendations of the Amitabh Kant committee set up by the housing ministry to seek greater monitoring of regulators’ performance. It has suggested that the committee may be requested to holistically look into all the issues of the real estate sector and recommend the steps needed to be taken to ensure that situations like delayed projects don’t arise in future.
In a letter addressed to housing minister Hardeep Singh Puri, the FPCE has urged that the RMC should be composed of homebuyers, distinguished independent individuals and reputable non-profit organisations. “This committee should exclude any involvement of builders or their organisations. The RMC’s primary role would be to scrutinise the deviations, operational practices and overall functionality and intent of the RERA authorities, ensuring they are aligned with the true spirit of RERA implementation,” it said.
Referring to the high-powered committee’s recommendation of “mandatory registration with RERA” of all real estate projects, the FPCE said the promoters were legally obligated to register their projects as per the central law.
On the panel’s observation that developers were required to maintain and provide detailed records related to the project, which include financial statements, legal documents and construction status reports, the FPCE said promoters were not adhering to the mandate of updating project information every quarter and the regulatory authorities were not taking adequate actions to enforce this requirement. “Instead of imposing penalties for non-compliance, they seem to be only issuing notices after a significant period of default, which is certainly inadequate enforcement,” the homebuyers’ body said.
The FPCE has also said the committee’s recommendation, which includes projects that were started after the enactment of RERA and delayed by more than two years, can participate in the state government/ RERA led resolution process suggests that even projects initiated after the implementation of the law are experiencing delays and issues. It said this again raises doubts about the effectiveness and functioning of RERA in preventing project delays and ensuring timely completion.
On the recommendation that a fresh three-year extension may be given to all projects at no payment to authority, the homebuyers’ entity said the proposed extension does not consider timeline needed for completion of projects on a case to case basis which in many cases may be much less than three year period.
“It also lacks a compensatory provision for suffering homebuyers. This could potentially offer relief to builders but at the detrimental cost and continued suffering of homebuyers who have already endured prolonged project delays and an additional three year extension without any compensation may completely break them both financially and mentally,” the FPCE said.
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