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Delhi-RERA Chairman Anand Kumar advised real estate developers to file complaints with regulatory authorities if customers do not pay the amounts owed on residential or commercial properties they have purchased.
Speaking at an event on the real estate sector, Kumar, who heads the Delhi-RERA (Real Estate Regulatory Authority), warned developers against falling into the "trap of investors" as it could impact their cash flow and cause projects to stall. He said some wealthy individuals buy many flats with the hope of abnormal profits, but only pay 30% of the total cost upfront. They then stop making installment payments and ignore reminders from builders. Kumar cautioned that if builders do not take action against such investors, their "financial cycle will be disrupted" and there will be stalled projects.
This forces builders to cancel units, leading to disputes. Kumar said if developers find a customer isn't paying on time, they should approach RERA before the customer does. RERA can help builders as well as customers. There are provisions to cancel allotments of units if payments are delayed, allowing builders to move forward.
The Real Estate (Regulation and Development) Act, known as RERA, was passed by Parliament in March 2016 and the legislation came into force on May 1, 2016, with 69 of 92 sections notified. The Real Estate Regulatory Authority for the National Capital Territory of Delhi (Delhi-RERA) was established through a notification in November 2015.
Kumar also spoke about the lack of skilled workers in real estate and the need for training. He said unauthorized development reduces land efficiency, and such colonies are problematic in cities like Delhi, Noida and Gurugram.
Sanjay Kulshrestha, Chairman and Managing Director of HUDCO, said around 3% of the country's land contributes to 60% of GDP and stressed on the need for real estate developers to venture to non- metro and smaller centres. Real-estate is the second largest employer after agriculture and is also one of the fastest growing sectors, said Neel C Raheja, Chairman of CII National Committee on Real Estate and Housing and Group President of K Raheja Corp. In 2023, India emerged as an "office to the world" with record office leasing. The sector is expected to grow significantly by 2047.
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