H-RERA: K Khandelwal, the recently designated chairperson of Gurgaon seat of Haryana Real Estate Regulatory Authority (H-RERA), has assured that developers showing consumers a hard time won’t be spared, to the relief of the lakhs of homebuyers in Gurgaon, the gigantic real estate hub of Delhi NCR — who have been sincerely requesting a regulator for the real estate in the zone.
Mr. K Khandelwal discussed his ideas and plans to manage the real estate sector in the NCR, where it has a reputation of being unregulated, he made it clear that the specialist will not hesitate in practicing its powers, including suo motu ones, in propelling investigations against developers who have attempted to cheat home buyers.
Khandelwal, A 1985-batch IAS officer, who has taken voluntary retirement, was additionally of the view that with the real estate regulatory body getting functional in Gurgaon, financial institutions will have more trust in lending money to builders by virtue of regulatory compliance. Of Haryana’s aggregate realty projects, 65% are situated in Gurgaon region alone.
The importance of the Real Estate Sector in NCR
At the present time, real estate market is very unregulated. This has prompted a lot of practices in the sector, which are not of the greatest advantage to the buyers. The problem with any unregulated market is that over some stretch of time, a ton of new operators enter it. The Chairperson of H-RERA said that they will probably discover plans to secure the interest of buyers and guarantee there is sound competition in the market. The way to regulate an industry is the appropriate measure of laws with 100% compliance, which involves executing different government procedures, commitments made to the buyers as a part of agreements and conditions put forward by RERA.
The major challenges faced in Gurgaon
The first and the greatest challenge are to set up a regulatory authority from ground up. It includes surveying the necessities of the business and of consumers, and setting up an organization, which meets those prerequisites. We need to guarantee the correct sort of organization structure, contract the best individuals in the market, and have a decent pool of consultants and lawyers in the board and a powerful IT framework. Another critical challenge is to create an environment of trust and reasonableness, to offer certainty to customers and industry players.
RERA’s provisions to deal with homebuyers
RERA has enough provisions to manage substantial quantities of issues, which homebuyers are at present, are confronting. Any regulation has dual objectives of addressing to the present issues in the market, and furthermore guaranteeing that future projects/transactions are regulated properly.
The quality of a regulatory body is determined by its capacity to implement conditions of regulations, and ensuring the cost of non-compliance is sufficiently substantial for parties failing to play by the rules and principles.
Is H-RERA is a diluted piece of legislation because of exclusion of ongoing projects?
Each legislation develops over some stretch of time, based on the execution experience and stakeholder inputs. The Act tends to address to the problems of customers as well as of builders and agents. This Act intends to adjust the interest of all stakeholders. Consumers have enough security under RERA, much beyond the realm of the Consumer Protection Act. In addition, it accommodates timely transfer of all complaints received by the Authority, i.e. within 60 days. Thus, it is not a diluted Act.
RERA will increase the demand in the Realty Sector
The real estate sector is experiencing a tough period as a major aspect of the business cycle, which is a consequence of several factors. Some of these are specific to this sector, as unsold stock, incomplete projects, stressed resources, bad practices adopted by organizations, and so forth.
RERA will have the capacity to empower the sector by expanding customer confidence about timely completion of under-construction and on going projects, resolution of stressed resources, therefore opening demand and the purchasing power of buyers. Financial institutions will have more trust in lending money to developers/builders because of regulatory compliance. Stringent compliances required to be trailed by developers/builders will decrease risk for home purchasers. Khandelwal mentioned that in his evaluation, he could expect a noteworthy uptake in the activity in Gurgaon’s real estate in the next 12-18 months.
Consequences of irregularities committed by any Real Estate Firm/Colonizer
A critical part of the functioning of the authority is to guarantee compliance of its regulations, orders or directions by the real estate firms and promoters. This Act gives express powers to the Authority to seek data suo motu and start investigation against any real estate company/colonizer. While the Authority is staying a suit, the Act likewise gives it powers as are vested in a civil court under the Code of Civil Procedure.
Message for Buyers/Consumers
Protecting buyer’s interest, reestablishing consumer faith in the real estate sector and advancement of transparency in the working are key targets. The message to customers is that H-RERA is focused on ensuring rights and interests of buyers, who have invested their money in property and, in huge number of cases, have been shown a good time by developers. This sort of conduct will not continue without serious consequences. Strict move will be taken to shield consumer’s interest.
Message/Caution to Real Estate Companies
The message is clear, the interest of the purchaser will be ensured at all cost. Any developer or company which follows the procedures and the requirements of the act has nothing to worry about, however anyone tries to cheat the buyer won’t be saved.
Hence we can say by analyzing the above points that this year, the Real Estate Regulatory Act (RERA) arrived as the greatest boon for the home buyers, as it gave them the hope that their long standing complaints against builders would be redressed. And this would further reestablish faith in the real estate sector and it will also promote transparency in the working.
Note – Please note that the above article is for education purpose only. This is based on our interpretation of laws which may differ person to person. Readers are expected to verify the facts and laws