By Accommodation Times Bureau
With the infrastructure to implement provisions of the Real Estate (Regulation and Development) Act not yet in place, real estate developers have asked state government to extend deadline for registration of projects with Real Estate Regulatory Authority (RERA) by three months.The Real Estate Act came into force in the country from May 1. The state government also appointed former chief secretary Manjula Subramanian as chairperson of interim Gujarat Real Estate Regulatory Authority recently. But, this seems to be it.
Under RERA, projects are required to be registered within three months, i.e. by July 31. Developers said that almost two months have passed by since RERA came into effect, and just over a month remains for the deadline, but there are question marks about the infrastructure.
“There are close to 75,000 ongoing real estate projects in the state, which have to be registered with the authority, which has to approve them within a month. We are not sure if the infrastructure to clear these many projects is there,” Shekhar Raval, who heads Credai’s RERA committee, said.The Real Estate law provides for online registration and approval of projects but developers say there is not enough time.
Developers are seeking three months’ extension to register the proejcts. “We have suggested that the countdown starts when the infrastructure is in place,” said Ashish Patel, president of Gihed Credai.
Developers fear that property launches will dip by 80% this year. They attribute it demonetisation effect, (though sales have picked up since March), sweeping regulatory changes due to implementation of RERA and GST.
“New launches this year will be at only 20% of average levels,” Ashish Patel said.