Fiscal discipline will play a critical role in project development and requires utmost importance
- 70% of the funds collected from allottees need to be parked in the project account.
- Withdrawls to cover construction and land cost.
- In proportion of the % completion method.
- Withdrawls to be certified by Engineer, Architect and CA.
- Provision for RERA to freeze project bank account upon non-compliance.
- Project Account to be Audited/FY. Copy to be submitted to RERA.
- Provision stronger financial penalties for RERA non-compliance.
- Interest on delay will be same for customer and promoter.
- Promoter to compensate buyer for incorrect statement with full rerun of property cost with interest.
Structured communication is required to furnish all project related information to the customers.
- Number, type & carpet area of apartments
- Consent from affected allottees for any major addition or alteration
- Consent of 2/3rd allottees for any other addition or alteration
- No false statements or commitments in advertisement
- Quarterly updating RERA website with details such as unsold inventory & pending approvals
- No arbitrary cancellation of units by promoter
- Project complition time frame
- Informing allottees for any minor addition or alteration
- No Launch or advertisement before registration with RERA
- Consent of 2/3rd allottees for transferring majority rights to 3rd party
A PMO would be required to track and monitor developments as per defined project plans
- Quarterly update of project progress along with pending approvals on RERA website
- Every office of the company, who as in charge or responsible will be liable for the conduct of the company and deemed guilty
- Offence by an officer committed with the consent or connivanc of any director, manager, secretary or other officer of the company, will also be guilty
Registration of all projects & brokers/agents and a strong dispute management will be
- Authenticated copy of all approvals, commencement certificate, sanctioned plan, layout plan of development work, proposed facilities, proforma allotment letter, agreement for sale & conveyance deed to be given when applying for project registration with RERA
- Registrations of brokers/agents with RERA
- Maximum 1 year extension in case of delay due to no fault of developer
- Annual audit of projects account by a CA
- Dispute resolution within 6 months at RERA and FERA appellate rebalance
- Developers to share details of projects launched in last 5 years with status and reason for delay with RERA
- Conveyance deed for common area in favor of RWA
- Mandatory registration of new and existing projects with RERA before launch
- Separate registration of different phases of a single projects
- Construction and land title insurance
- Project completion time period
- Governance and Transparency
- Project efficiency and robust project delivery
- Standardization and quality
- Enhance confidence of investor
- Attract higher investments and PE funding
- Regulated environment
- Common and best practices
- Increase efficiency
- Consolidation of sector
- Corporate branding
- Higher investment
- Increase in organization funding
- Significant buyers protection Quality products and timely delivery
- Balanced agreements and treatment
- Transparency – Sale based on carpet area
- Affordability will become distant
- Delayed launches and thereby lesser projects
- Safety of money and transparency on utilization