Developers Just Got A Reason To Cheer

When the Real Estate (Regulation and Development) Act, 2016, turned into a legislation after getting an approval from both Houses of Parliament earlier this year, apprehensions emerged in the minds of developers while buyers cheered the move with great passion. Despite the many explanations given by the government, not many developers were able to find much merit into a pro-buyer law. The situation developers face is quite similar to the strange apprehensions young minds of students face about a new class teacher; they start to dislike the new teacher without knowing much about her; the liking would come by and by.

Too much media stress on heavy words such as “transparency” and “accountability” in a way that indicated developers may be in for rough times further wilted spirits. Even the large players did not remain unaffected.

"While the (government) intention is laudable, and RERA (Real Estate Regulatory Authority), will indeed be a game changer, there are some serious anomalies in the actual provisions of the new legislation which, in my view, pose certain grave concerns for developers and other risk-taking players in the real estate business," real estate tycoon and DLF chief Kushal Pal Singh said about the legislation.

However, for the sector to function smoothly an active developer is as important as an active buyer, and without a complete synergy between the two, things might just come crumbling. Authorities do realise this. This is why when earlier this month Urban Development Minister M Venkaiah Naidu made the announcement that the Real Estate Act is finalised, he did not forget to invite private help in achieving his government's Housing for All target.

“The Real Estate bill has already been approved and we have finalised the rules, too. Now, we will communicate to the states shortly and the states have to appoint regulators within a period of six months... it will be a reality now,” The Economic Times quoted Naidu as saying. “This is a regulation and not a strangulation. We want the private sector to join in a big way to take on the challenge of housing shortage in the country,” the minister further added.

As the government goes ahead with implementing the new law, it would make the best of efforts to smoothen any ruffled feathers. Developers must see this as an opportunity. Like the young students who start to like the new teacher and her interesting ways of teaching how to solve complicated calculations, developers may get friendly with the new law, too.