While everyone was hooting on the passing of the Real Estate bill in Rajya Sabha, we caught up Ritesh Kumar Singh to throw more light on RERA. He is a Corporate Economist with Specialization in Investment and Trade Policy. Ritesh possesses in-depth knowledge of:
India’s Macroeconomic Problems & Policies
India’s Regulatory Regime including Sectoral Investment & Trade Policy Issues
India’s Rights & Obligations arising out of its bilateral/regional (PTAs/RTAs) and multilateral trade pacts (WTO)
India’s Geo-Economical Equations
Chinese Trade Regulations & WTO Accession Protocol
Currently, the Group Chief Economist, Raymond Limited – Ritesh Kumar Singh, has 17 years of work-ex in (Aditya Birla Group and Raymond Ltd) . Departments including 13th Finance Commission, DEA, Ministry of Finance, Govt. of India, Cabinet Secretariat.
We directly bring you the insights from the horse’s mouth himself.
What are the 2 key weaknesses of the RERA bill, from the consumer’s point of view or from the builder’s point of view?
There’s lack of clarity on the state of ongoing housing projects. Though the bill says that it will include ongoing over 17000 real estate projects that will need to register with the regulator, yet there’s confusion such as will a project which was sold 10 years back but not yet completed will be covered. If yes, at what rate builders will have to pay a late delivery penalty to the buyers? Clearly defining this in the bill would have been better for both buyers (so that they know their rights) and sellers (to ascertain their liabilities).
Again, there should have been a clear guideline for granting or rejecting regulatory approvals within a fixed time frame. Delayed approvals and change in by-laws also create problems…though so far builders smartly passed on the cost of these delays on home buyers…but now they’ll have to take up responsibility….
How do the challenges look like, in terms of on-ground implementation of the RERA bill?
The bill is yet to be passed by Lok Sabha and then get Presidential assent before it becomes a reality. Secondly, a lot will depend upon willingness of states to implement the law in letter and spirit…and the speed at which basic infrastructure in terms of technology…and manpower is put on the ground
Does the bill mean different things to metros, tier II, III cities and to rural India?
I don’t think so.
Not sure about the Real Estate Bill? Read our two cents on it here – http://bit.ly/real-estate-regulatory-bill.
You can reach Ritesh at https://www.linkedin.com/in/riteshcorporateeconomist or at @RiteshEconomist