Leave out existing projects, real estate body urges government

Kolkata: The Real Estate (Regulation and Development) Act aimed at offering protection to home-buyers may have concerns about the registration of existing projects under the Act.

The construction cost is also likely to escalate by 10 per cent with the RERA coming into force from May 1. “As per the law, one has to register the existing projects. But it is a disputable area. We are trying to convey to the government to exclude the existing project and to concentrate on new projects only,” real estate body CREDAI Bengal President Nandu Belani said at a seminar organised by the Bengal Chamber of Commerce in association with MACJ – A Buyers Choice Home Inspection. He opined that prices of homes will rise due to higher compliance and finance cost for the builders after RERA comes in force.

According to Girja Choudhary, whole-time director and CFO Emami Infrastructure, this clearly defines that projects for which completion certificate has not been issued cannot be considered as completed projects. “Developers have to maintain the escrow account for these projects. It would be good if states adopt what Uttar Pradesh government has notified about some exemptions about existing projects,” Mr Choudhary said, adding that 13 states and union territories have notified rules under RERA while others have prepared draft rules.

“The implementation of RERA will further boost the development of the home inspection services industry and I am confident that home inspection services in India will develop into a multi-billion US dollar industry over the next decade, helping both the developers and homebuyers in the process,” Mahendra Sureka director-CEO, of MACJ India said.