16 May Realtors seek extra one year to complete housing projects amid lockdown – cities
Real estate developers on Saturday said that the Uttar Pradesh Real Estate Regulatory Authority (UP-Rera) should given them an additional one year’s time to finish and deliver the housing units to homebuyers. In the wake of the Covid-19 lockdown, the regulator has given the developers the extra time of six months to complete realty projects.
The realtors raised the demand during a webinar conducted by various real estate regulatory authorities from across the country. The webinar, conducted to celebrate the three years of the Rera Act, was also attended by Hardeep Singh Puri, Union minister for housing and urban affairs, Rera officials said.
The Real Estate (Regulation and Development) Act, 2016 had come into force on May 1, 2017.
The developers put forth their demands before the Rera panel and the Union minister so that the real estate sector can tide over the Covid-19 crisis smoothly.
“We have demanded that the government or Rera must give us additional one year’s time to finish and deliver the projects which have been affected by the Covid-19 pandemic. As many migrant labourers have left the cities, resuming construction has become a challenging task. Also, the government must provide housing loan on low interest rate to create demand in the sector,” said RK Arora, UP president for National Real Estate Development Council (NAREDCO), a developers’ group
The Rera officials said that in the past three years they have been successful in winning over the homebuyers’ trust and also developers have faith in the regulator.
“Homebuyers have trust in the authority as they are getting their issues resolved in a time-bound manner. In the past three years, this authority has been able to win over the trust of both developers and homebuyers,” said Balvinder Kumar, member of UP-Rera.
The officials said that the biggest achievement of the authority is that the developers cannot misuse the funds collected from homebuyers.
“Now, we have escrow account facility for new realty projects. The funds in an escrow account is only used for a particular project. This transparency and monitoring of funds has helped us win buyers’ faith. And this is helping the projects get completed as per schedule. However, if Rera gets powers to issue directions to authorities such as Noida authority or Ghaziabad development authority, among other government bodies to enforce our orders, then it will help the realty sector in resolving long standing issues in a time-bound manner,” said Kumar.
Union minister Puri assured developers that the government is looking into issues cropped up after nationwide lockdown, the Rera officials said.
Many issues were discussed in webinar, including last mile funding to stuck projects, home loan at a rate of 6% and zero period for lockdown period, among others, the officials said.