Transparency in real estate deals provide the sterner test for the builders in the years to come. The developers are bound to act in accordance with the rules laid in Real Estate Regulation and Development Act (RERA) and any delay attract penalty. Real estate market is down and it is up to the developers to hand over the flats well ahead of time. As a result, the builders and developers sign the agreement in such a way and show that the completion of work will take longer duration on paper, than the time they actually hand over the flat. This is serving as a cover for inordinate delay if any due to delay in completion of the project due to natural causes. Despite all the clauses, some builders did not follow the rules and try to cheat the buyers and thereby are made to pay penalty even amounting to Rs 1 lakh per day for the delayed projects. It is time to go according to the time schedule rather paying heavy price for the same. RERA gives the full cover to the buyer and the developer has to apply caution in delivering the flat keys within the time framework. The RERA Act which came into effect on May 2017 mandates that builders disclose their project details including the possession date to strike the best deal.
Jayanthy S Maniam
(The views expressed by the author in the article are his/her own.)