Against a total of some 1,449 applications received till the first week of September, a meagre 78 real estate projects have been registered under RERA (Real Estate Regulation Act) in the past one-and-a half months. Builders feel the process registration is pathetically "slow" leading to a lot of frustration. RERA, which came into effect earlier this year, looks to organize a largely unregulated sector, protect the interests of homebuyers, reduce corruption and bring professionalism and accountability in the sector.
Property developers say they have been unable to register their projects on the state's RERA website due to technical problems since the beginning of this month. Many wondered whether this is another layer of bureaucracy that defeats the purpose of the RERA Act. Kapil Mohan, principal secretary of the state housing department, however, says that the prcoess will take its own sweet time because as per RERA Act there are a number of requirements that must be met before registration can take place.
"We have not been able to market our products for the past two months. There is an inordinate delay," Shriram Properties managing director S Murali said. Shriram has 16 projects under the ambit of the law and none of it has obtained a RERA registration number as of Saturday.
The rate of approval worked out to an abysmal one in every two days till Friday, when just 24 were given the nod. Since then, though, 54 more have been approved. Builders say the authority does not have enough resources to do the job quickly. In comparison, Maharashtra received close to 13,000 applications till the end of August and has cleared 8,000 of them.
Realtors have alleged that in spite of submitting relevant documents, they have been sent collective notices saying the information provided was insufficient.
"I've been asked to submit encumbrance certificate, mutation, conversion order, sale deed and title deed for my projects while these were not mentioned anywhere on the portal," Suhail Rahman, executive director of Asset Builders, said.
Kapil Mohan, principal secretary of the state housing department, said: "Once a builder uploads the relevant information on the portal, they get a temporary number, which is enough to conduct day-to-day operations. The permanent number will take some time as there is a verification process."
Builders say a sale agreement cannot be executed with the temporary number. Mohan admitted that it is a "learning process for all of us" and said the situation would improve in a week. "Problems have arisen in most cases where builders have failed to give us ownership title. I think there is a degree of discomfort in answering some questions. The government's approach is to correct the builders rather than reject applications."
The authority, according to Mohan, is processing 30-40 projects every day and the delay happens when a realtor does not provide sufficient information."Once found deficient, the process of correcting takes a lot of time. The onus is on you to get it right, in the first place." If all the required information is furnished by the builders it takes just 2-3 hours to register, he added.