The RERA Act, should have provisions to fill the loopholes as it will make the law more effective in the interest of all stakeholders, regulators feel.
While attending an event organized by industry chamber PHDCCI, KK Khandelwal, the Gurugram RERA chief urged India Inc to offer suggestions to the Government so that necessary amendments can be made to the law better for both the developers and the homebuyers.
He feels that in the current situation stipulations and provisions of RERA Act have multiple loopholes that are required to be fixed.
Khandelwal said, in its current format, several sections and sub-sections including clauses and sub-clauses of the RERA Act are contradictory and therefore, open for many legal interpretations as well interpretations of real estate regulatory authorities of different States and therefore, amendment to them are called for to make sure that all stakeholders in the real estate and construction sector get a fair deal and the intended growth of the sector is ensured.
Balvinder Kumar, Member, UPRERA was also present in the event informed about receiving 70,000 complaints from home buyers against the developers and all these complaints are related to delay in possession.
He also informed that the authority has addressed more than 10,000 complaints.
Earlier in April, both the HRERA and UPRERA issued directives that the builders cannot repay the bank loans or any other money borrowed from the financial lenders by using more than half of the total amount collected by the homebuyers.
No developer can initiate 70 percent of the money collected from the homebuyers to repay loans. Both the authorities said that the money deposited by the homebuyers should only be used to complete the project.