594849 SIP myths you must know!

In the wild unruly world of real estate development, the Real Estate (Regulation and Development) Act 2016 arrived like a much-needed reprieve. Builders who used to cheat buyers with impunity were brought under some kind of regulation that tried to safeguard the interest of the buyer with standardisation of measurements, disciplining developers and ensuring the flow of proper information.

But five years later, a few irritants remain. One of the biggest complaints revolves around the issue of refunds. Even after a refund certificate is obtained from the regulatory authorities, most developers simply don’t comply. Since the decision is in favour of the buyer, he can’t approach the appellate body. According to the law, if the refund is not made, the district magistrate is supposed to get hold of the property of the developer, sell it and make the refund to the buyer.

It implies a nightmarish process that is never a priority for the DM. The buyer keeps running from pillar to post to get the order implemented. Needless to say, the developer, far more resourceful than the buyer, is up to his tricks and muscle to prevent the eventuality. Even in the unlikely situation of full support from the DM’s office, the process of taking control of a property and selling it needs years as powerful banks have found out to their cost. The poor homebuyer, who has already spent a few years after investing a pile of hard-earned money, is left to run around between the RERA office, DM’s office and lawyer’s chambers, spending further money and time. Already frustrated buyers are moving courts by thousands seeking quick refunds.

Another issue that is generating frustration among buyers is the grant of extension to developers. While the Act grants extension of projects for a maximum period of one year only in the case of force majeure situations, extensions are being granted in other situations too, complain buyer associations. Extensions only add to the cost of the buyers.

RERA also needs to be implemented across the country. West Bengal is a state that is yet to implement it after the Supreme Court struck down a state Act to regulate the housing sector as unconstitutional. The government should fill the vacuum without delay.