Buyers and users of various goods and services look for ISI (Indian Standard Institute) logos on products, FSSAI (Food Safety & Standards Authority of India) approvals on food items, and Agmark certification on agricultural produces. This offers the comfort of quality purchase because the items would have gone through the regulatory approvals, making them safe for the end-users.
Now it is time for real estate developers to emboss the RERA logo on their projects. This even when advertising about new or work-in-progress projects. The Central government recently passed the much awaited Real Estate (Regulation & Development) Act which has already been implemented in a few States. Recently the government has given a deadline for all States to enforce the Act before July 31, 2017.
RERA is designed to protect property buyers and bring discipline in the segment where unsuspecting buyers had been taken for a ride time and again. From now onwards, without registering under RERA neither can new projects be launched nor can any advertisement or promotion of a project be made. Even if a builder orally assures that he has applied for the registration you should refrain from buying from that entity.
The size of the project does not matter to get the RERA registration since irrespective of the size of the project, all builders have to necessarily apply and obtain the same (500 sq. metres and above). For those buyers who have already invested in an on-going project whose Occupancy Certificate is yet to be issued, the respective builder has to get the registration which is mandatory.
Compliance
If the builder has been unable to obtain RERA registration from the authority concerned, there could be compliance issues or the complete approvals have not been taken from local corporation bodies. You should stay away from buying in such projects.
Redressal departments are in place where complaints can be lodged for resolving an issue, and the problem areas with the builder or with the project can be known. If you have already invested in an on-going project which has been delayed inordinately you can approach the appellate authority and complain. Such complaints can be made online too. But if you have bought through an unregistered builder, you may get only the information about the fallacies and no legal action may be taken.
In future once you buy through a RERA-registered builder and the project gets delayed you could approach the appellate authority where the builder will be summoned for explanation and clarification with assurance of a new delivery date.
There is scope for compensation too; for the entire period of delay of handing over delivery the builder will have to pay 2% over and above the MCLR rate of a PSU bank which at the prevailing rate of interest could fetch about 10% p.a.
The good times for home buyers is here which indicates that customer interest remains a priority across all products and services.
