Rajiv Ranjan Mishra, Joint Secretary, Ministry of Housing and Urban Poverty Alleviation, has urged the states to complete the process of notification and appointment of full-time regulators at the earliest for Real Estate Regulation Act (RERA) to positively impact sales and the industryÂ’s profit.
Speaking at a FICCI seminar on Â‘Real Estate Regulation Rules, GST & Affordable Housing (CLSS Scheme)Â’, Mishra said that so far, 14 states and Union Territories have notified RERA, which came into force on May 1, 2017, and another 14 states and Union Territories were at an advanced stage of notifying the Act.
RERA aims to protect the rights of consumers and usher in transparency and accountability. The sector, which had immense potential to generate employment and scope for investment, had remained largely unregulated over the years. With RERA in place, the sector is expected to receive the required fillip, contributing to the overall growth of the economy.
He said that states should desist from changing the fundamental rules of the Act. There would be state-specific issues, which will require diverse solutions and states should consider them. On affordable housing, he said that there was a huge demand in this segment and developers should work in this sector proactively. He added that there was a need for stakeholders to work in tandem.
Mishra said that the industry will have to learn and adapt the new modes of businesses. With the enactment of the Act, issues will arise and they would have to be dealt with proactively. He urged FICCI to share the industry recommendations on RERA with the ministry to ensure a smooth transition.
On the occasion, the dignitaries released the FICCI-GT-Khaitan & Co Comparative State RERA Rules Report, which comprises a survey that studies the impact of RERA on the sector and stakeholders. The findings show that more than 60 per cent of the respondents feel that, going forward, transparency will increase in real estate dealings and close to 60 per cent of the respondents feel that RERA will increase the governance hold in the sector and lead to increased investments.