Union Home Minister Amit Shah said the RERA Act has played a major role in introducing transparency, discipline, and accountability in the real estate sector of India. In addition to this, the legislation has been quite successful in protecting the buyers of houses to a considerable extent.
Besides this, Shah spoke about the impact of RERA on the real estate market in his address at the National Conclave of the Confederation of Real Estate Developers Associations of India (CREDAI) in Delhi. He said that the Act has changed the way the property market operates by making transactions fair, by elevating the quality of construction, and by raising the confidence of buyers.
He also said that the Act has been in the news for its utility and effectiveness since its enactment. At the time when we are looking back, it is hard for anyone to say that RERA hasn't been a key player in the smooth functioning of developers and the entire real estate ecosystem, he stated. Regulations, according to him, should not be considered as limitations but as instruments that increase trust and business growth in the long run.
The Real Estate (Regulation and Development) Act was a well, thought, out legislation that passed through the Parliament in 2016 and was implemented in full in May 2017. Subsequently, a total of 35 states and Union Territories have accepted it. As per Shah, 29 states have set up appellate authorities. Besides, 29 RERA authorities have launched dedicated websites so that more people get access to the information and that it remains transparent.
Union Minister Shah highlighted the extensive implementation by quoting that the number of real estate projects registered under the RERA framework is more than 1.55 lakhs, and nearly 1.10 lakhs developers have been registered. These steps have been instrumental in the protection of homebuyers from delayed projects, advertisements that mislead consumers, and unfair practices on which they were silent, and on the other hand, developers have been encouraged to take up more responsible business practices.
The Union Minister pointed out that rules, if carried out in the right spirit, provide more opportunities and do not block the way. Regulations always help in increasing business opportunities, enhancing credibility, and guaranteeing better facilities to customers, he said. This gave an assurance to the developers that the government is not going to take steps unilaterally but rather will have discussions and consultations with stakeholders while reforms are introduced.
Union Minister Shah put the spotlight on the government's moves to lower the expense of building through reform of the Goods and Service Tax (GST) as well. He mentioned that the authorities have simplified GST rates on essential construction materials to lessen the money burden of both developers and customers. Affordable housing has got a GST concession from 8% to 1% whereas housing projects are now subject to a lesser rate of 5% instead of 12%. The fractional component in the GST on cement has been brought down from 28% to 18%, and the respective aliquots on marble, granite, sand, lime, bricks, and bamboo flooring are all at 5%.
By these reforms, it is feasible that the construction costs could be decreased by five to seven per cent and this is the way one can bring the best facilities to the customers, Union Minister Shah explained. He confirmed the importance of the real estate sector in achieving PM Modi's vision and therefore asked the big builders to mix the production of the affordable houses with their major projects.
Besides the changes in regulations and tax laws, Union Minister Shah was also very much concerned about the sustainability aspect of urban development. He invited the developers to turn green building norms into the 'new normal' through the use of energy, efficient buildings, water recycling, rainwater harvesting, scientific waste disposal, and green areas in their developments.
Image- x.com
.png)