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    Builders want homebuyers' plaints to go to RERA first

    Synopsis

    With most cases in the National Company Law Tribunal pertaining to real estate, several projects have been stalled and developers and the industry body have called for changes in the law. According to the Confederation of Real Estate Developers Association of India, 65% of the cases in the NCLT are related to real estate projects.

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    At a recent RERA conclave, buyers acknowledged that individuals approaching the NCLT was a problem.
    NEW DELHI: Property developers in the country are pushing for the Real Estate Regulatory Authority to be the first point for redressal of complaints by homebuyers.

    With most cases in the National Company Law Tribunal pertaining to real estate, several projects have been stalled and developers and the industry body have called for changes in the law.

    According to the Confederation of Real Estate Developers Association of India, 65% of the cases in the NCLT are related to real estate projects. “Buyers are unnecessarily dragging cases to the NCLT and that is why we are demanding that RERA should get exclusive rights to deal with complaints related to the sector,” said Jaxay Shah, managing director of Ahmedabad-based Savvy Infrastructures.

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    Shah is also chairman of the Confederation of Real Estate Developers Association of India. After the government announced a Rs 25,000-crore realty fund to salvage stalled housing projects, developers are now asking for RERA to be the first point of complaint for homebuyers. At a recent RERA conclave, buyers acknowledged that individuals approaching the NCLT was a problem.

    “We have been advising the government to create an escalation mechanism and let RERA act and decide first and if you are unhappy, you can go to another available forum. Today, people are going to RERA, NCLT and the consumer forum, which is not ideal,” said Nimish Gupta, MD, South Asia RICS (Royal Institution of Chartered Surveyors), a professional body that represents the interests of all stakeholders in the sector.
    (Catch all the Business News, Breaking News Events and Latest News Updates on The Economic Times.)

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    11 Comments on this Story

    Birender313 days ago
    IBC has first time brought errant builders to their knees & having lost in SC court they are now trying to amend law by putting minimum nos of home buyer requirement by managing gov
    Dhanala Vengalarao314 days ago
    RERA act implementation and evaluation not much speeded up to the mark, the state governments permissions and burocrsy dented to the delay and delevary to the buyers of the projects.its leads compulsory go to default category.
    Kanth King314 days ago
    A foolish decision by the most foolish FM of India.. This new Rs.25000 crore fund will stall more projects eyeing for this pie..
    The Economic Times