It is an exciting time in Indias real estate development sector. This excitementrevolves around the introduction of RERA which promises to be the single biggest reformever in Indias real estate space. The introduction of RERA prompts the observationthat across the foreseeable future the history of Indias real estate developmentsector will be defined by this watershed development pre-RERA for everything thattranspired before 2017 and post-RERA for whatever transpires thereafter.
RERA promises to transform the face of Indias real estate development sector invarious ways. One following the introduction of RERA the dispute resolution mechanismbetween various real estate participants will be heard by a Real Estate AppellateTribunal a dedicated authority. All related litigations across consumer forums will betransferred to this Tribunal; this Tribunal will be empowered to appoint adjudicators; alldisputes would have to be compulsorily resolved within 60 days.
The result is that years of protracted delays in arriving at a solution will shrink toa couple of months at most creating a pool of governing precedents that could reinforceindustry best practices.
Two real estate developers will need to share every inch of detail about theirproposed offerings (uploaded on the RERA site) applicable to projects located on 500 sq.m or comprising more than eight or more apartments - virtually every real estate offeringin the country. Following scrutiny (with the possibility of a number of project detailsreferred back to the builder) and sanction RERA will provide each project with a uniqueregistration code representing license for the builder to commence work.
The result is without the issue of this critical registration number the builder willneither be able to place a brick onsite nor advertise effectively permitting only qualityprojects into the marketplace.
Three even as a developer markets an under-construction property 70% of salesproceeds would need to be vested in an escrow account for identified project use.
The result is that the statute will effectively address all delays arising out offinancial indiscipline and the diversion of process to unrelated businesses projects orland banking.
Four the builder will need to faithfully adhere to the sanctioned blueprint in allrespects; the contract between customer and builder will carry a five-year warrantyagainst structural damage.
The result is that quality accountability will be the defining attribute around whichnew generation real estate development companies will be built.
Five RERA will address the entire real estate ecosystem holding real estate marketingagents accountable for deliveries against promises and even customers if they fail to payon schedule.
The result is that RERA penalties and consequences will eject the inefficient /non-compliant from the market and enhance consolidation in the real estate sector.
I am pleased to state that Puravankara is almost completely RERA-compliant throughenduring best practices. We refrain from promoting or advertising our project unless allapprovals have been obtained.
Our disciplined cash flow management ensures that our projects are completed onschedule leaving enough surplus to be reinvested into our land bank. We have beengenerating project surplus continuosly to ensure customer interests are kept in mind whichis the essence of RERA.
Our Puravankara brand stands for construction quality.
Our prudent use of best resources people or material have graduated ourPuravankara and Provident brands to quality durability and smart space utilizationbenchmarks.
Since Indias realty industry is always high on public consciousness and fulfillsa fundamental need home ownership - RERA will enhance accountability and celebratebrands that respect letter and spirit.
I am proud that Puravankara is one of them.