Real Estate Act: Builders expect relaxation for ongoing projects

Here is good news for people planning to buy a flat. The Centre on Friday said all ongoing projects that remain incomplete by the end of April 2017, will come under the Real Estate (Regulation & Development) Act.

The new rule is likely to benefit flat buyers as a delay would extend them all benefits under the Act. At the same time, it will exert pressure on the realty sector to complete ongoing projects within the next three months.

The realty sector is already witnessing a slump due to various factors, including demonetisation. As a result, several ongoing projects were either shelved or slowed down in the city.

In a statement, CREDAI secretary S Suresh Hari said: “It’s a challenge to comply with RERA with reference to the commencement period. Ongoing projects might be from different timelines and at various stages. The implementation of the Act on such projects will lead to major challenges.”

Reacting to the statement, Unishire managing director Pratik K Mehta said, “We will completely abide by the intent of the Act and its merits of bringing in transparency and accountability in the sector.”

“We are not against inclusion of ongoing projects under this Act, but there has to be some relaxation for ongoing projects. Even planning authorities should be made accountable within the Act,’’ Mehta said.

There are far too many ongoing projects in Bengaluru with some flats measuring at least 5,000 sq ft carpet area. It will be an herculean task to get every project registered within a specified timeframe, Mehta added.

“According to the Act, the project promotion cannot be continued till the registration is complete. Completion of this process will delay projects,” Mehta added.