Page 41 - CV April-May 2019 issue

Project details not yet public Resolution Forum — the first of its kind — Pre-RERA, there was no transparent
Despite most States having notified the Act, for faster resolution of disputes between mechanism to monitor project cash flows to
only a few State and UT RERA websites are buyers and developers. a particular developer. Post-RERA, with 70
fully operational and publishing project These measures have enthused consumer per cent of customer advances having to
information online. sentiment in Maharashtra (especially pass through a separate bank account, a
Mumbai), and are being studied by other developer will have to ensure that withdrawal
While these websites have disclosed the
States. from this account is in line with the progress
registered details of more than 25,000 real-
of the construction, and excess funds cannot
estate projects and more than 16,000 real- RERA will have the biggest impact on two
be withdrawn without requisite progress on
estate agents, many have excluded crucial major financial aspects — project execution
project execution.
details such as past experience of and viz. curtailment of pre-launch sales, and
RERA is expected to put an end to fund
litigation against project promoters, land routing of project cash inflow through a
diversions and make the real-estate sector
area of projects, carpet area of units and separate bank account.
Improving trust more organised and trustworthy in the long
sold/unsold status of projects.
A model to emulate run. However, in the short run, any revival in
The Act does not permit developers to
end-user demand is unlikely.
The MahaRERA website leads in both launch projects before registering them with
project registration and disclosure, given the the RERA authority. This should help Binaifer Jehani is Director, CRISIL
close monitoring by the authority. eliminate the torturous delivery delays that Research.
Maharashtra has also initiated formation of plague the industry (up to six years in some
the MahaRERA Conciliation and Dispute instances).
39 / CONSTRUCTION VISION / May June 2019