PostRERAchangesmade in agreements: survey
FINDINGS While 45% of the developers don’t have a proper mechanism for RERA compliance yet, there have been significant changes made to customer and vendor agreements
RERA Act is changing the entire landscape of the real estate sector and redefining the process of how real estate sales happen in India. Every stakeholder, right from the government, bankers, private equity to consumers, are unlearning the old ways of operating andaligning to the newsystems/ processes which are RERA-specific.
According to Navin Raheja Chairman, FICCI Real Estate Committee, “RERA, whichcame into force from1May2016, is now seen as one of the most significant reforms in the real estate sector.
According to RERA, all the state governments were to put in place the Act’s rules and regulations for their respective states by May 1, 2017. The Government of Karnataka has notified their rules in July 2017.”
As per the latest survey on RERA, 45 per cent of the real estate developers havenoformal process in place to manage compliance mechanism of RERA. The survey report by Grant Thornton in India and industry body FICCI, reveals that majority of the board and senior management (78 per cent) of real estate companies are using common methods like excel based MIS (Management Information System) reporting to review RERA compliance.
According to Neeraj Sharma, Director, Grant Thornton Advisory Private Limited, “Like any other major reform, RERA has its own sets of initial challenges, which are causing disruption in the sector. However, everyone including the developer fraternity is positive about the longterm impact of RERA. The sur-
SENIOR MANAGEMENT ACROSS REALTY COMPANIES ARE USING METHODS LIKE EXCEL BASED MIS TO REVIEW RERA COMPLIANCE
vey has pointed out some very interesting perspective on how developers are gearing up for this big change and making appropriate changes to their sys-