CREDAI National RERA Meet commenced!

CREDAI MCHI hosted CREDAI National RERA Meet which was attended by 23 State/City Presidents, National Office Bearers, Managing Committee Members of CREDAI- MCHI and experts Shri Sandeep Singhi from Singhi & Co and Shri Suhas Merchant, Chairman, RERA Legal. The meeting was held at Hotel Sahara Star from 11:00 am to 04:30 pm on 15th May 2017 which deliberated in detail on various aspects of RERA and how it is going to impact the functioning of industry going forward. Besides, challenges developers are facing or may face while registering their projects on MAHARERA website which is live from May 1, 2017.  

The Meet was attended and deliberated amidst the presence of Mr. Jaxay Shah, President, CREDAI – National, Mr. Dharmesh Jain, President, CREDAI – MCHI, Mr. Boman Irani, VP, CREDAI – MCHI, Mr. Vyomesh Shah, Imm. Past President, Mr. Mayur Shah, President – Elect, Mr. Deepak Goradia, VP, Mr. Harish Patel, VP, Mr. Nainesh Shah, Secretary,  CREDAI – MCHI.  Also present were Past Presidents of CREDAI-MCHI Mr. Rajni Ajmera, Mr. Paras Gundecha and Mr. Pravin Doshi.  CREDAI – National CEO Mr. Atul Rai was also present on the occasion along with Presidents of all CREDAI chapters.
Addressing the members present, Mr. Jaxay Shah said, “With RERA coming in, CREDAI has to play a pro-active role. The objective of this meeting is to come up with a common White-Paper and have some key take-away like what we should represent under Section – 91.” 

“The deliberations to involve three most important aspects like: What is best of the best thing among all the States, the exact situation regarding the formation of rules and website etc. and handling the buzz in the media that all States are diluting RERA rules. We need to communicate that whatever changes or recommendations we have made as CREDAI National are only for Ease of Doing Business and speedy implementation of rules. My suggestion would be to create a strong Consumer Grievance Cell so that they are prepared before approaching RERA,” added Mr. Shah.

Mr. Rohit Modi, Secretary, CREDAI National invited all State Presidents to provide updates/ status on rules & regulations on various parameters.  
Following were the major discussion points about RERA: 

1. Places, where the RERA rules have been notified and the website is ready.
2. Only two to three states having notified the constitution of Regulatory Authority
3. Major issues discussed were on the ongoing projects. It was discussed that for Ongoing Project, the time limit for filing within 90 days should be extended to 120 days or it should be till 31st December 2017. (Clarification to be obtained, sales, employment, FDI will suffer, rules are not notifying in any places.) Issues/removal of difficulty
4. Disclosure: It was discussed that the sanctioned proposed plan and the approvals should be made visible on the website. Estimated cost and other related costs and accounting should not be made visible on the website. 
5. Regarding Act on ongoing project, where agreement executed before 1st May 2017 (issue how to go)
6. Conveyance of the Society, regarding common area conveyance.
7. Clarification of interest.
8. Insurance of title, it should be till conveyance or maximum for 5 years.
9.  Lack of clarity shall adversely impact progress on ongoing projects and investments into new projects which would jeopardize growth prospects of the economy.
10.  Delay in approvals by Building Regulatory Authorities in excess of the time provided in Provision of Services Legislations.
11. Some states like Maharashtra follow conveyance of common areas to the RWA/ Societies. Other states like UP, follow conveyance of common areas in favour of allottees. The act provides for executing conveyance deed of common areas in favour of association without regard to regional variations which may need to be clarified.
12. Defect liability to be reckoned for five years from the date of completion and/or OC and not from the date of possession.

The major discussion was how the different states are facing the difficulty with the RERA Rules and also with the website.

All in all, meet was very fruitful with best of the brains in the industry brain-storming for bringing to the fore very relevant aspects and pain areas of RERA.