Rera impact: Stressed realtors seek buyouts or JVs with big players

Rera makes it mandatory for developers to keep 70% from a project sales in an escrow account

With the Real Estate (Regulation and Development) Act, or Rera, in place in many states, leading developers or those promoted by corporates are seeing a surge in requests for buyouts and joint ventures from smaller and stressed companies.

Big players say there has been a jump of 25-200% in the number of such proposals in recent months.

L&T Realty, part of construction giant L&T, has seen a three-time jump in the proposals for joint ventures or buyouts, said its chief executive officer, Shrikant Joshi.

“With Rera, it has become a serious issue to deliver any project. The law is very