CREDAI-Pune Metro recently organised the interactive workshop on the Real Estate Regulatory Bill (RERA) 2016 in the wake of passing of the Bill by both houses of Parliament. The workshop was organised to bring awareness about the bill’s provisions amongst the builder members.
The panel of senior advocate Zaheer Khambatta, Vinit Deo, Shantilal Kataria- president of CREDAI-Pune Metro, Rohit Gera, Suhas Merchant, vice-president and advocate I P Inamdar, said the 400 plus builder members discussed various provisions of the bill including definitions, components of estimated cost, compliances and penal provisions at length.
As per bill norms, the state government shall establish the regulator for registration of projects. All the promoters will have to apply for registration with the regulator and are required to disclose all the details of the project on the website of authority. The promoter will not be able to market/ sale/book or offer/advertise without registration of the project.
They will have to disclose date of possession, if the date of completion is not complied with, there is penal provision for this delay. It applies to sale of commercial, residential, industrial and also plotting of the land. The act also has defined the carpet area, however now in Maharashtra all transactions have to take place in carpet area only as per provisions of MOFA.
CA Vinit Deo said that due to implementation of provisions of the bill there is possibility in increase of 8 per cent to 12 per cent in the sale cost. He further said that due to provision of maintaining deposit of 70 per cent amount in the bank account, sale allowed only on obtaining all permissions and after registration of project, compulsory insurance of the project and five years’ defect liability period, there will be increase in the finance cost of the project.