In accordance with the Real Estate (Regulation & Development) Act, 2016 being implemented starting Monday, real estate leader DLF's CEO Rajeev Talwar, while lauding the government on its 'memorable' approval, has asserted that the regulation will bring in the much-needed accountability and transparency among property developers and buyers.
Speaking exclusively to ANI here on Monday, Talwar said the implementation of the Act will hereafter ensure a property developer's adherence to timely completion of projects, since all developments will require a sanction from the authorities.
"It is a memorable day. All new projects launched for sale will be done so only once approved. This might result in fewer projects available for sale, but buyers can be sure of timely completion, thereby boosting investor confidence," he said.
Commenting on the existing projects that have been stalled across the region, Talwar suggested that initial funding may be provided by development authorities and the state governments in order to ensure that buyers get their completed projects at the rate at which they were promised.
"The initial funding, if provided, can be made accessible in the form of an escrow account," he added.
In the wake of the recent complaints that have been lodged against DLF's contemporaries in the real estate sector, Talwar urged that rather than jailing the authorities, a solution needs to be worked out to ensure that the projects are not further delayed.
"If the authorities are jailed, the projects will be further delayed. As developers it is our responsibility to ensure that buyers are handed over their completed projects on time and at the same rate as discussed. It is important to work out a win-win situation," he added.
With all the 92 sections of the act coming into effect, developers shall get all the ongoing projects that have not received Completion Certificate and the new projects registered with Regulatory Authorities within three months, that is, by July end.
This enables the buyers to enforce their rights and seek re-dressal of grievances after such registration.
"Real Estate Act coming into force after a nine year wait marks the beginning of a new era making buyer the King while developers benefit from the confidence of the King in the regulated environment. Prime Minister Narendra Modi's personal interest in the matter made the Act a reality now," said Union Minister of Housing and Urban Poverty Alleviation Venkaiah Naidu.
"The act ushers in the much desired accountability, transparency and efficiency in the sector with the Act defining the rights and obligations of both the buyers and developers. This important legislation gained momentum under this government and could see the light finally," he added.
Ahead of the act coming into force, the Ministry of Housing and Urban Poverty Alleviation has formulated and circulated Model Real Estate Regulations for adoption by the Regulatory Authorities in the states/UTs.
Under these regulations, developers are required to display sanctioned plans and layout plans of at least 3 feet X 2 feet size at all marketing offices, other offices where properties are sold, all branch offices and head office of the promoters in addition to the site of project.
Real Estate Regulatory Authorities may take decisions on all issues, preferably through consensus failing which through voting with chairman using Casting Vote in case of a tie.
There shall be quorum for the meetings of the regulatory authorities and if a meeting is adjourned due to lack of such quorum, such meeting can take place without quorum. Members of regulatory authorities shall declare interest if any in the matters coming up for discussion and shall not participate there in.
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