Is RERA really regulating the Indian real estate industry?
Real estate Regulation Act is boosting the confidence of both Real estate developers and agents. After RERA, every Real estate agent and builder/developer requires to register themselves with the RERA registration number to practice legally. Many Estate agents have already registered themselves but most of them did it individually (on their names).
In the current scenario, RERA provides two options in registration. One is Individual (on the agent’s name) and second is sole proprietorship/private limited company or a partnership firm. Before RERA, most of the Indian real estate players used to operate their business on proprietor/company basis, they never used their individual names. The Individual registration fees in far much cheaper than that of proprietor/company or partnership firm. The Real estate agent registration fee structure is different for different states. Now the main problem is that in some states like Uttarakhand and Uttar Pradesh, the agentsare facing a much higher fee structure for a proprietor/company or partnership firm. Uttarakhand and Uttar Pradesh real estate Agency(Proprietor/company) registration fees is Rs.2,50,000/-.The sameinDelhi/Rajasthan isRs. 50000/- and in Himachal Pradesh is Rs.10,000/- only. The registration fee is Rs.50000/- in Bihar andRs.250000/- in Jharkhand.
The difference intheseregistration fees shows clear injustice done among the states of India. It is true that the same rules cannot be applied to all the states, but all the states are important to the country and somewhere needs the same treatment in fiscal and economic terms. It is disappointing that RERA has not noticed or addressed this issue yet. In fair terms, every Indian state can have afixed Real estate(company/partnership/proprietor) registration fee to eradicate the issue. Higher authorities should consider this issue and solve it as soon as possible for a much comfortable and competitive environment in the Indian Real estate industry.