Mumbai: After revoking and objecting to several provisions in the Real Estate Regulation Act, members of the consumer body, Mumbai Grahak Panchayat, said that there are still some loopholes in the framed rules that need to be plugged.
The RERA Act, which has been drafted to protect the rights of consumer and to bring in transparency in the real estate sector, came into effect on May1.
The committee has also pointed out that a single regulatory authority to deal with real estate disputes of the entire state is insufficient. According to RERA, each state will set up a regulatory body to solve the disputes between the buyer and the developer. However, only nine states and six Union Territories have notified their rules under the RERA act.
After opposing the unjust interest rate on penalties for home buyers, MGP successfully brought an equitable interest rate for both the parties.
Speaking exclusively to Free Press Journal, Shirish Deshpande, chairman of MGP, said their efforts to bring changes in the act have paid off well and will keep fighting for consumer rights. Deshpande said, “It was an imbalance and unjust rule earlier as the developer used to charge 12% – 18% interest on delay in payment whereas the developer would pay around 8% for delay in possession. We suggested an equitable interest rate on penalties for both the parties which was later provisioned in the act.”
The committee’s suggestions and objections have made an impact to the Defect Liability Period (DLP) of the project. “Earlier, the developer was liable for the repairs of his projects till two years after the possession of the flats, but we suggested that the liability
period should be extended to five years,” Deshpande said.
The committee will also hold a meeting with Gautam Chatterjee, RERA interim chairman, for clearing home buyer’s doubts on the new real estate rules of the Act.