Real Estate bodies NAREDCO and CREDAI won’t move court against RERA
Praveen Jain, president of the real estate body National Real Estate Development Council (NAREDCO), said that it will not move court against the implementation of Real Estate (Regulation and Development) Act, even with regard to ongoing projects, as the Act helps in building buyers’ confidence. The Confederation of Real Estate Developers’ Association of India (CREDAI) has also urged its members to register their ongoing projects as per the ruled notified by the state governments. Manoj Gaur, national vice president of CREDAI, also said that they are not opposed to the implementation of RERA on ongoing projects but certain clauses of the Act should not be implemented with retrospective effect such as depositing unused 70% of the money collected from the buyers in a dedicated escrow account.
Gaur said that CREDAI has already indicated that the association supports implementation of the rules but it must be practical and aid in faster completion of ongoing projects. He said if the high courts’ rule is unfavourable, they will move to court.
NAREDCO president Jain, who is also the CMD of NCR-based Tulip Infratech, said the government must create the required infrastructure to fast track registration of projects to avoid disruptions in construction works. According to him, states must appoint the permanent regulator as early as possible as an interim regulator will not be able to do justice to the sector and will delay the registration processes.
Only a handful of states have so far launched the websites for online registration. States like Haryana, Telangana and West Bengal, where a lot of construction activities are taking place, are yet to notify the rules. UP, which covers Noida, Greater Noida, Ghaziabad and Yamuna Expressway, has rules but it yet to start registration as the state does not have a website.