- RERA to be exclusive legal forum for real estate complaints
- Viable projects be given the option of onetime restructuring of their loans
Lucknow, November 4, 2019: Representing 12500 members, 21 state and 204 city level chapters, CREDAI, participated in the first national RERA conclave in Lucknow, organised by UP RERA. The conclave, created a platform for property developers, buyers, regulatory authority and other stakeholders to come together and focus on strengthening the legal framework of RERA and growth of the real estate sector.
The first ever two day conclave focused on crucial aspects of the real estate sector including present day issues such as invoking of insolvency by single buyer under NCLT, liquidity crunch and growth strategy needed for revival of the sector. Speaking at the conclave, Jaxay Shah, Chairman, CREDAI National lauded RERA on its efforts to institutionalize and organize the real estate sector.
Jaxay Shah, Chairman, CREDAI National, said, “We congratulate RERA and its member for all the tireless work which has gone into strengthening and enabling the real estate sector. With the current economic slowdown and issues like liquidity crunch and rise in insolvent projects due to unregularied cases in NCLT, it is pivotal for the industry to stand together and address the concerns and look for solutions.”
Satish Magar, President, CREDAI National, said “We are thankful to UP RERA for providing this platform which allowed the real estate industry and regulatory authorities to come together and address the troubles faced by the sector at present. We would urge RERA authorities to look at amending the RERA Act and make it the exclusive legal forum for addressing real estate complaints. ”
CREDAI recommended following steps which are necessary keeping in mind the current scenario in the sector:
- At present, due to factors like deceleration in demand owing to lower GDP growth and liquidity crunch faced by developer is also affecting healthy projects, the sector is triggering a vicious cycle of distress. In order to revive the sector, it is essential to introduce onetime restructuring of loans for all long term viable projects, without further delay.
- Amendment of RERA Act to make it the exclusive legal forum for real estate complaints: By giving supremacy to the IBC over RERA Act, the very intention of the legislature enactment of the RERA Act has been defeated. RERA can be empowered, i.e. in any case any allottee being a financial creditor, has any issue with the real estate developer, and the first remedy available should be RERA.
Real estate sector is the largest employer after agriculture in India and accounts for 8 per cent in India’s overall GDP. The sector is expected to grow at a swift pace, contributing $1 trillion to the GDP by 2030, where participation of private sector is pivotal. The role of RERA and real estate will be paramount in achieving “Housing for All” by 2022.
CREDAI also requested RERA to create an environment of trust and confidence amongst the sector under which while all the issues are dealt in order of law, the developers are treated in a fair and a civil way.
About CREDAI
Established in 1999, the Confederation of Real Estate Developers’ Associations of India (CREDAI) is the apex body for private real estate developers in India, representing over 12000 developers through 21 states and 203 city chapters across the country. Since, its inception, CREDAI has been working towards the cause of Housing and Habitat. It has imprinted the critical importance of real estate to the GDP of India on the minds of the government, policy makers and general public and has become the backbone of the Real Estate Industry.