RERA: Bas Naam Hi Kaafi Hai?

Noida : Though RERA (Real estate development & Regulatory Act- 2016) is yet to show its power in Indian Real Estate Market but just the fear of it getting implemented soon in different states is making builders to gear up & finish their long time pending residential projects and escape from the provisions prescribed in this buyer friendly Act. Though its is a debatable issue whether the the Act would be covering all the housing projects which are under construction and not yet completed or will it govern only those projects which will come into the existence after the Act got implemented.

Whatever it will be there in the future? But, as of now just the name of RERA seems to be working in Noida, Greater Noida & Gurgaon. The developers of delayed housing projects here, have now started to seriously take the possession delivery as a part of their business, which they seems to have forgotten after taking advances from the home buyers. There are the reports that number of housing developers in Noida, Greater Noida & Gurgaon have increased the pace of construction to deliver the housing units at the earliest to escape from the JAWS OF RERA.

Combined together, the Noida, Greater Noida & Gurgaon has the maximum number of under construction housing projects. The trio also tops the cities with maximum number of delayed residential projects. There are the instances where the project have launched much before the surge of realty boom in India in 2006 but are not yet delivered even after this boom seem to be over now. Well, besides builders, Government is also liable for this delay, not just policies & corrupt system but also our honorable members of Parliament who sat over the Realty Bill and did not let it pass for their political mileage.

As per the report released by CREDAI, around 45,000 flats in different housing projects of Noida and Greater Noida are going to be delivered until the end of March 2017. The association of housing developers in India claims 25,070 units have been delivered this financial year up to now. Authorised sources from CREDAI Western UP said, "We have compiled database based on inputs from the developers of the housing project in Noida and Greater Noida. While most of them are already giving possessions, the rest of the will deliver the units by March 2017."

Real estate market in Northern India, especially the Delhi NCR, which comprises Noida & Gurgaon has seen a surge in the legal battle between the home buyers and the developers of housing projects. These legal battles are not just limited to the lower courts or the District consumer forum, the litigants have now reached the Supreme Court and the National Commission for Consumer Forum. In most of the cases, the builders are ordered to pay the heavy penalties to the home buyers, whose residential units have remained undelivered for long. The judicial system in India has rendered their support by increasing the rate of Interest for the late penalty to a realistic percentage from an unrealistic rate of interest prescribed in their Builder- Buyers Agreement.This approach has encouraged the housing developers in NCR to increased their construction speed and to start taking the agreed delivery schedule more seriously.

As per the report published in a daily newspaper, NCR had 2.65 lakh unsold housing stock within the first quarter of the financial year 2016-17, the highest among major cities, based on Liases Foras, with Noida and Greater Noida being the worst affected sub-cities.NCR also witnessed the sharpest drop in new launches, at 41% in the beginning of 2016, from last year period, based on the report from Knight Frank India, as developers centered on completing the existing housing project projects.