Builders who witness clients failing to make timely payments must register complaints: Chairman of Delhi-RERA

NEW DELHI: If clients fail to pay the full amount owed on residential or commercial buildings they have purchased, builders should lodge complaints with the relevant regulatory bodies, in Delhi said Anand Kumar, chairman of RERA. The chairman of Delhi’s Real Estate Regulatory Authority, Kumar, warned real estate developers not to fall into the “trap of investors” during a real estate event, as this might negatively impact their cash flow and cause projects to stop.

“Investors fall into a trap,” he stated, noting that many wealthy people buy multiple apartments in the hopes of making extraordinary profits.

According to Kumar, these investors only pay up to 30% of the overall cost of the units; after that, they cease making payments in installments and ignore builders’ reminders.

Then, he claimed, real estate developers are compelled to cancel the units, which causes conflicts with tenants.

“You (the builder) go to RERA before the person who is not paying on time if you discover any issues.” Because you are also intended to benefit from RERA, not only the allottee,” Kumar informed developers.

He pointed out that the RERA law has clauses allowing builders to revoke unit allotments and proceed if a payment is not made on schedule.

If builders do not take action against these investors, Kumar said, their “financial cycle will be disrupted” and projects will stagnate.

After being approved by Parliament in March 2016, the Real Estate (Regulation and Development) Act, or RERA, became operative on May 1 after 69 of its 92 sections were notified. In November 2018, a notification was issued establishing the Real Estate Regulatory Authority for the National Capital Territory of Delhi, also known as Delhi-RERA.

Kumar requested that builders abide by the RERA legislation. In addition, he discussed the shortage of skilled and semi-skilled workers in the real estate industry and insisted that training is necessary.

Kumar stated that illegal colonies are a problem in places like Delhi, Noida, and Gurugram. “If we curb unauthorized development, then we can have 5,000 houses in the same land where we have 1,000 houses,” he remarked.

The Chairman and Managing Director of HUDCO, Sanjay Kulshrestha, emphasized that real estate developers must push into non-metropolitan and smaller centers, noting that roughly 3% of the nation’s land contributes to 60% of GDP.

Neel C. Raheja, Group President of K Raheja Corp. and Chairman of the CII National Committee on Real Estate and Housing, stated that the real estate industry is one of the fastest expanding and is the second largest employment after agriculture.

“We are at the forefront of employing people, educating them, and giving them better employment opportunities,” he continued.

According to Raheja, the real estate industry is predicted to account for 7.5% of GDP now and increase to 15.5% of GDP by 2047. By 2047, the real estate industry is predicted to account for 15.5% of GDP, up from its current 7.5% share, according to Raheja.

In 2023, almost 60 million square feet of office space will be leased, according to Khattar. “A major accomplishment has been made. This demonstrates to the rest of the world the nation’s legitimacy as an office,” he continued.