Monday, June 17, 2019
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Posted at: May 21, 2018, 12:37 AM; last updated: May 21, 2018, 12:37 AM (IST)

Where the shoe pinches

While most of the buyers are yet to fully comprehend the contours of RERA, the builders have already started feeling the squeeze. Vinod Behl enumerates some of the sore points from the industry's perspective
Where the shoe pinches

In the pre-RERA regime, property buyers were shortchanged on space, with heavy loading on carpet area. The net result was that buyers were charged for more space than what they actually got. RERA protects the buyer by making it mandatory for developers to sell on the basis of carpet area. 

Carpet area

The industry, through the Builders Association of India, has made a case for bringing in the definition of carpet area in line with Development Control Regulations framed by respective municipalities. It calls for including exclusive balcony area, setback terraces, verandah or exclusive open terrace in the carpet area.

Ongoing projects

As the ongoing projects come under the purview of RERA, the industry believes that it would lead to practical difficulties as one part of the ongoing project would be under RERA while the other wouldn't be under its control. In such a situation, the modalities for sale of apartments, specific undivided rights in common areas, formation of associations; execution of conveyance deed proposed for the ongoing projects will be different. It will be practically impossible to govern one project by two different provisions of law at different times.

Additional floors

RERA specifies that the promoter shall construct and develop real estate project, in accordance with the sanctioned plan. But the industry says that the addition of floors should not be treated as alterations or modifications in the sanctioned plans.

Delay in approvals

RERA prescribes severe penalty to developers for project delays even if it is due to regulatory hassles.  The Act has not covered sanctioning authorities under its ambit. Industry wants that the 'force majeure' circumstances should be properly defined to include unforeseen circumstances beyond the control of developer like scarcity of construction materials, labour issues, new government policies, default in payment by allottees and non-receipt of further permission from competent authorities. 

Structural faults

Since RERA holds developers accountable for structural faults and deficiency in quality, the industry has made a plea that promoter should not be held responsible for defects which are caused due to interior works carried out by the allottees or service providers. 

Parking issue

The industry has also sought clarity over parking. The number of total parking spaces in the project should be specified instead of open car parking spaces and there should be proper clarification with regard to the visitor's parking.

—The writer is Founder, Ground Real(i)ty Media


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