New Delhi: Real estate industry body CREDAI on Thursday sought the prime minister's intervention to ensure proper and expeditious implementation of the new real estate regulatory law to protect the interest of property buyers and developers.
The Real Estate (Regulation & Development) Act, which was passed last year, came into force from May this year. The law requires all ongoing projects to be registered with the real estate regulators.
The Confederation of Real Estate Developers' Associations of India (CREDAI) said the delays in appointing regulators and roll-out of this law in states have affected the operations of the real estate sector.
The association sought more clarity on various aspects such as the definition of an 'ongoing project' and faster implementation of processes by state-central authorities.
It requested Prime Minister Narendra Modi to intervene in a bid to facilitate the successful implementation of the law.
"While the RERA is bound to enhance the level of ease of doing business, it has experienced some teething problems owing to the delays in processing the different provisions of the law by the state authorities," CREDAI National President Jaxay Shah said.
To make matters worse, he said banks and financial institutions have stopped sanctions and disbursements of housing and project loans to real estate.
This will adversely impact execution of projects on time besides affecting allied industries and workers.
"It is absolutely imperative, therefore that appropriate guidelines be issued to resume sanctions and disbursements for housing projects," Shah said.
CREDAI said that lack of appropriate infrastructure and notification of RERA rules led to majority of developers not being able to register their projects on time.
In its letter addressed to the prime minister, CREDAI recognised this Act as a game changer for the industry as well as consumers.
The association mentioned about the negative implications has had on several stakeholders on account of the delay in notifying the different provisions of the law.
"A large number of states today have not yet appointed a regulator, while some appointed the same only recently," the CREDAI said.
The developers were not able to register their projects with the authorities, making it difficult for them to adhere to delivery timelines.
"This has a direct impact on the consumers since they continue losing money, in the form of EMIs on the home loan and paying for a rented accommodation," CREDAI said.
