Numerous upcoming projects that are offering flats for sale in Mulund East, Bhandup, Dadar, and other cities in Mumbai have received a huge blow with the implementation of the act. Although it is beneficial to the buyers in a way, most developers can be penalised or wrongly accused without any fault of theirs due to the many loopholes within the act. Some of the major impacts on real estate developers include the following:
- On-going projects are bound to suffer the most with RERA since the act has taken an objective turn. This may cause a number of builders to suffer losses even if they haven’t necessarily defied the rules of the act for the reasons stipulated by the regulators. This is especially unfair for those developers who have had to pause their projects due to other reasons.
- Many times, the delays are caused due to government officials delaying the sanctions required for a certain project. The Act makes no provisions for such cases, leaving real estate developers to shoulder the blame.
- The act stipulates that developers would have to refund the money invested within sixty days which is hardly possible, leaving developers fending for their rights without having anyone to stand by them. Home buyers are, more often than not, seen as the victims in such cases, making it even more difficult for real estate developers to function as per the act.
- According to the act, sales can only happen once the registration is complete. This would further increase the cost for developers, leaving them in a lurch.
While the implemented seeks to work for the betterment of the society, it fails to take an impartial view of the current status, allowing buyers and investors to reap the benefits while real estate developers suffer through it all. This certainly calls for the government to take a better look at the consequences of the act and make the required amendments to be a just act for all.
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