New Delhi: Builders should file complaints with the regulatory authorities if customers do not pay the dues on residential or commercial property purchased by them, Delhi-RERA chairman Anand Kumar said.
Addressing an event on the real estate sector, Kumar, who is the chairman of the Real Estate Regulatory Authority, Delhi, cautioned real estate developers against falling into the "investor trap" as it could impact their cash flows. , which may result in stalling of projects.
“There is a trap of investors that goes on,” he said, adding that there are many high net worth individuals who buy multiple flats in the hope of making huge profits.
These investors pay a maximum of 30 per cent of the total cost of the apartment and after that they stop paying their instalments, Kumar said, adding that such investors do not respond to reminders given by builders.Real estate developers are forced to cancel units, leading to disputes with customers, he said.
Kumar told developers, "If you (builders) face any problem that someone is not paying on time then you first go to RERA, before he comes to RERA. Because, RERA is only for allottees. "No, but it's for you too."
He said there are provisions in the RERA law where if someone does not make the payment on time, the builder can cancel the allotment of the units and move on.
Kumar cautioned that if builders do not take action against such investors, their "financial cycle will be disrupted" and projects will come to a halt.The Real Estate (Regulation and Development) Act, known as RERA, was passed by the Parliament in March 2016 and came into force on 1 May 2016 with 69 out of 92 sections being notified. The Real Estate Regulatory Authority for the National Capital Region of Delhi (Delhi-RERA) was established through notification in November 2018.
Kumar asked builders to comply with the provisions of the RERA Act.
He also talked about the shortage of skilled and semi-skilled workforce in the real estate sector and said there is a need to provide training.
Kumar said, “If we curb unauthorized development, we can have 5,000 houses on the same land where we have 1,000 houses.He said unauthorized colonies are a problem in areas like Delhi, Noida, Gurugram.
HUDCO Chairman and Managing Director Sanjay Kulshrestha said that about 3 per cent of the country's land contributes 60 per cent to the GDP and he stressed the need for real estate developers to venture into non-metro and smaller centres.
Neil C Raheja, Chairman, CII National Committee on Real Estate and Housing and Group President, K Raheja Corp, said real estate is the second largest employer after agriculture and is one of the fastest growing sectors.
“We are at the forefront of hiring people, training them and creating better livelihoods for them,” he said.
Raheja said, the real estate sector is estimated to be about 7.5 percent of the GDP, which I expect to grow to 15.5 percent of the GDP by 2047.Shriram Khattar, Vice Chairman and Managing Director, DLF Rental Business, said, India has emerged as the destination for the world in 2023.
Khattar said leasing of office space is expected to exceed 60 million square feet in 2023.
"A milestone has been achieved. It firmly establishes the country's credibility as a destination for the world," he said."
Addressing an event on the real estate sector, Kumar, who is the chairman of the Real Estate Regulatory Authority, Delhi, cautioned real estate developers against falling into the "investor trap" as it could impact their cash flows. , which may result in stalling of projects.
“There is a trap of investors that goes on,” he said, adding that there are many high net worth individuals who buy multiple flats in the hope of making huge profits.
These investors pay a maximum of 30 per cent of the total cost of the apartment and after that they stop paying their instalments, Kumar said, adding that such investors do not respond to reminders given by builders.Real estate developers are forced to cancel units, leading to disputes with customers, he said.
Kumar told developers, "If you (builders) face any problem that someone is not paying on time then you first go to RERA, before he comes to RERA. Because, RERA is only for allottees. "No, but it's for you too."
He said there are provisions in the RERA law where if someone does not make the payment on time, the builder can cancel the allotment of the units and move on.
Kumar cautioned that if builders do not take action against such investors, their "financial cycle will be disrupted" and projects will come to a halt.The Real Estate (Regulation and Development) Act, known as RERA, was passed by the Parliament in March 2016 and came into force on 1 May 2016 with 69 out of 92 sections being notified. The Real Estate Regulatory Authority for the National Capital Region of Delhi (Delhi-RERA) was established through notification in November 2018.
Kumar asked builders to comply with the provisions of the RERA Act.
He also talked about the shortage of skilled and semi-skilled workforce in the real estate sector and said there is a need to provide training.
Kumar said, “If we curb unauthorized development, we can have 5,000 houses on the same land where we have 1,000 houses.He said unauthorized colonies are a problem in areas like Delhi, Noida, Gurugram.
HUDCO Chairman and Managing Director Sanjay Kulshrestha said that about 3 per cent of the country's land contributes 60 per cent to the GDP and he stressed the need for real estate developers to venture into non-metro and smaller centres.
Neil C Raheja, Chairman, CII National Committee on Real Estate and Housing and Group President, K Raheja Corp, said real estate is the second largest employer after agriculture and is one of the fastest growing sectors.
“We are at the forefront of hiring people, training them and creating better livelihoods for them,” he said.
Raheja said, the real estate sector is estimated to be about 7.5 percent of the GDP, which I expect to grow to 15.5 percent of the GDP by 2047.Shriram Khattar, Vice Chairman and Managing Director, DLF Rental Business, said, India has emerged as the destination for the world in 2023.
Khattar said leasing of office space is expected to exceed 60 million square feet in 2023.
"A milestone has been achieved. It firmly establishes the country's credibility as a destination for the world," he said."
