Gurugram RERA seeks crucial Amendments to RERA Act

No.PR-44

August 20, 2019

New Delhi

Gurugram RERA seeks crucial Amendments to RERA Act

Mr K K Khandelwal, Chair, Gurugram RERA on Tuesday has asked India Inc and leading Chambers of Commerce and Industry such as PHDCCI to make suggestions to the government for necessary amendments to RERA Act to make it conclusive and dispassionately objective for both builders and buyers of dwelling units.

According to him, the existing stipulations and provisions of RERA Act have many loopholes that need to be plugged in the interest of all the stakeholders involved in rebuilding India’s real estate sector which contributes significantly to national GDP as also the second largest employers in the country.

Addressing an Open House Discussion on RERA Act : Its Impact and Implications organized by PHD Chamber of Commerce and Industry (PHDCCI) here today, Mr Khandelwal categorically pointed out that certain drafting lapses have happened in the RERA Act, which needed to be corrected by revisiting the entire legislation.

“In its current format, several sections and sub-sections including clauses and sub-clauses of the RERA Act are contradictory and therefore, open for many legal interpretations as well interpretations of real estate regulatory authorities of different States and therefore, amendment to them are called for to make sure that all stakeholders in the real estate and construction sector get a fair deal and the intended growth of the sector is ensured”, said Mr Khandelwal.

Therefore, time has come for all industry associations and concerned members of the civil society to ask the Centre Government to initiate changes and necessary amendments to the Act so that fair deal and win-win situation is created for each stakeholder involved in the real estate value chain, concluded Mr Khandelwal admitting that the Act will then serve the real purpose and amount to be game changer for the overall growth of the sector.

Mr Balvinder Kumar, Member, UP RERA who also spoke on the occasion informed that the UP RERA has so far received 70,000 complaints from various house buyers against builders and developers in the State that have defaulted in their delivery commitments.

Of which 10,100 complaints have been addressed, 60% of which pertains to asking the builders and developers to issue refund orders within 45 days, added Mr Kumar pointing out that 6,200 complainants of the total 70,000 complainants are located in Noida, Greater Noida and Ghaziabad region.

He also hoped that with UP RERA, there will be reforms in housing authorities as well those agencies that are associated with such authorities including builders and real estate developers.

In his welcome remarks, Dr D K Aggarwal, Senior Vice President, PHDCCI pointed out that RERA Act is one of the crucial reforms that has been undertaken by Modi government and will ultimately catapult the fate of the real estate sector. To similar reforms undertaken by the Modi government that will have positive consequences for the Indian economy comprise the GST and IBC Code, concluded Mr. Aggarwal.

Among others who were also present on the occasion consisted of Mr Sanjay Aggarwal, Vice President, PHDCCI; Mr Manoj Kapoor, Konsultantz LLP, Consultant to the State Governments of Haryana, Punjab, Madhya Pradesh and Rajasthan on Real Estate Policy Matters; Mr Himanshu Goyal, CA, Ramanand Goyal & Co. (Specializing in RERA); Mr Piyush Lohia, Co-Chair, Housing & Urban Development Committee, PHDCCI including its Chief Economist Dr S P Sharma.

Ends.

Koteshwar Prasad Dobhal

Consultant (PR)