With the implementation of the Real Estate (Regulation & Development) Act, 2016 (RERA), the wait for the landmark realty law is finally over. It gets operational nine years after being conceived. Jagmohan Garg in Delhi, the leading real estate tycoon believes that RERA is looked upon as a beacon of hope, safeguarding the interest of consumers and protecting them from unscrupulous developers.
Instilling the much-needed changes in the realty sector, RERA has brought a sigh of relief for the homebuyers. It is likely to expedite the completion of construction projects and put an end to the unnecessary project delays and low quality of construction. According to Jagmohan Garg News, the act will be effective in reviving the housing demand and securing great hope in terms of sustaining growth in the real estate sector. Having complete faith in the efficacy of RERA, Garg stated that finally property seekers would be able to breathe free and invest without doubt. Certainly, it will be a confidence booster for home buyers. However, developers may not get in alignment rapidly, and require more time to comply with the provisions of RERA.
The law is expected to shoot the demand up in the real estate sector, eliminating the stagnancy due to the unsold inventories, piling up since demonetisation. Jagmohan Garg Delhi emphasizes that it holds that developers need to pay an interest rate of 2 per cent points above State Bank of India’s (SBI) lending rate to the homebuyers. At the same time, the norm of imprisonment of up to three years for errant developers, would eliminate the prevalent fraudulent practices against the buyers, in no time.
Jagmohan Garg emphasizes that RERA will cut down the inordinate charges levied by builders, making the buyer pay only for the carpet area (area within walls). It will put an end to the current practice of charging for the super built-up area, where you get 900-1,000 sq. ft. carpet area if you book a 1,300 sq ft house (the rest is balconies and common spaces). Moreover, the builder will have to provide for any structural defect in the building for five years.
Propagating such robust changes, RERA is likely to bring in cheer for the realty industry and is bound to have brighter prospects.