Page 19 - Banking Finance August 2017

HOUSING

Real estate regulator starts operation Uttar Pradesh RERA site

The Real Estate Regulatory Authority (RERA) has begun its operation in gets flooded with 15,000
Bengaluru, and has started accepting regis-
tration of projects, agents and complaints as complaints on first day
per provisions of the act. UP RERA website got application for
only eight
The State Government notified the RERA
projects on
rules recently. "The regulatory authority has the opening
begun functioning, and the principal secre- day. The
tary is heading it for the time being. The site also wit-
government will soon appoint a regular nessed huge
chairman," Housing Minister M.Krishnappa told reporters. The authority, he said, traffic of homebuyers and around
is clarifying doubts both online and offline, and will help home buyers. 15000 homebuyers registered their
complaints against the builders. In
Since the launch of the portal, many promoters and agents have submitted their
order to control the rush the UP gov-
registration requests and paid the fee online, the government, RERA officials
ernment introduced a fees of Rs
said. The officials also urged developers of ongoing projects as well as those ready
1,000 lodge complaints.
for launch to register with the Authority.
"Aggrieved buyers have been lodging
Former Credai Bangalore president J.C.Sharma termed RERA going on stream their complaints since morning. They
as "it is better than never." His own company, Sobha Developers registered one are complaining not only about indi-
project and many others are in the pipeline. He, however, requested the regu- vidual projects but also about the way
lator for a 90-day window from the date of notification of RERA rules for devel- 'ongoing projects' have been defined
opers and real estate agents to get themselves registered. under UP RERA," said Abhishek
Kumar, the president of Noida Exten-
"RERA is going to put both fear and pressure among project developers, and
sion Flat Owners Welfare Association.
make them customer friendly. This will hopefully stop any diversion of funds by
developers from the project for which the money is collected," said Damla According to office bearers of Confed-
Mathew, MD at Damden Properties, a developer of budget homes. eration of Real Estate Developers As-
sociation (CREDAI) the site slowed
He, however, said he was unsure how this is going to play out in terms of sales. down as thousands of property buy-
"From demonitisation to GST to RERA have psychologically weakened the spirit ers registered their complaints. "The
of the real estate industry. The timing of RERA, I think, is wrong." complaints actually slowed down
builder registrations. However, things
LIC Housing dips by over 4% are going to become more transpar-
ent from now on with complaints
LIC Housing Finance share on bourse dropped as the company posted its Q1FY18
being out there for all to see," said
results lower than the industry esti- Amit Modi, vice-president, Credai
mate. LIC Housing Finance's NII for the
(western UP).
quarter grew 9.2% yoy to Rs 936.95
The RERA website (http:www.up-
crore. The provisions declined by 10.3%
rera.in) has provisions for registration
yoy to 104.46 crore. However the net
of promoters, builders, projects and
profit for the quarter increased 15.3%
agents. In Gautam Budh Nagar, includ-
yoy to 470.06 crore.
ing Noida and Greater Noida, there
LIC Housing Finance Ltd is currently are over 80 ongoing projects by 58
trading around Rs 691.5, down by Rs 29.4 or 4.08% from its previous closing of builders. Thousands of agents operate
Rs 720.9 on the BSE. The BSE group 'A' stock of face value Rs 2 has touched a 52 in both cities. A total of eight projects
week high of Rs 794.1 on 20-Jun-2017 and a 52 week low of Rs 470 on 09-Nov- were registered from three cities on
the day one of the UP RERA launch.
2016.

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