Solve Legacy Issues in Next 12-24 months: UP RERA Chairman Sanjay Bhoosreddy to Real Estate Developers at ‘r&m Podium’ 

Noida, May 2024: Solve legacy issues in next 12, 18 or 24 months, finish the projects and move on and start new projects, said UP RERA Chairman Sanjay Bhoosreddy. The UP RERA Chief was speaking as a Chief Guest in Realty & More Magazine’s knowledge platform, R&M Podium.

Bhoosreddy highlighted the challenges of legacy issues in real estate, including operational challenges faced by both promoters and development authorities. He pointed out that approximately 95% of homebuyers are genuine, seeking homes for their families, while only about 5% are investor buyers who can be regarded as a greedy buyer to the system. He stressed the importance of collaboration among RERA, various development authorities, promoters and homebuyers to ensure quality homes and their timely delivery. Furthermore, he called on major players in the industry, especially those operating in the NCR, to work together to address these challenges and meet the genuine needs of homebuyers, ensuring timely possession and quality housing.

Bhoosreddy said that demand in real estate drives investment, as no promoter invests without the expectation of returns. There are multiple investors and financial institutions involved with a developer who seek secure and profitable investments out of a project.

Many prominent developers, IPCs and DPCs were present in the event including Manoj Gaur, President of CREDAI NCR and CMD of Gaurs Group; Sanjay Sharma, Director of SKA Group and Gaurav Kumar, Managing Director of Capital Markets & Land at CBRE India, among others, on the topic of “RERA: The Game Changer.”

Bhoosreddy began the discussion and said, “We (RERA) became fully operational around September 2018. We are continuously working towards development, as there is always room for improvement. According to the RERA Act, all ongoing projects will be completed as planned. We have standard operating procedures (SOPs) in place to push projects with legacy issues forward. Numerous developers from different states are coming to invest in UP, Noida, and the NCR, and there has been significant investment in Ayodhya. We need to replace the negativity surrounding real estate with a more positive outlook”.

He urged the industry to focus on closing long pending projects and moving ahead with new developments. He stated, “It’s high time we close this chapter and move ahead. All of you should come forward and get new projects registered. You have now seen how we function. We will dispose of your application within one month if it is complete in all aspects. Decide your timelines, confirm those timelines to your allottees, adhere strictly to those timelines, finish the project on time, and then start new projects. For any long pending projects, use Section 8, use Section 15—these are the instruments available to you. We are here to support you, but let’s work hard and accomplish as much as possible.”

Sharing his views on the role of RERA in strengthening market sentiments, Manoj Gaur, Chairman of CREDAI National and CMD of Gaurs Group, said, “RERA benefits both buyers and developers. The authority acts as a catalyst for the real estate sector. Notably, 50 per cent of real estate development has been observed in the Delhi NCR. RERA serves as an instrumental body governing the real estate improving the sector’s functioning. It is crucial for the market’s long-term commitment and survival. Our goal is to achieve zero complaints registered. Transparency has increased significantly, and we now offer a 30-day full refund policy. If buyers decide not to proceed with their purchase, they will receive a full refund. This initiative aims to restore lost trust among buyers in Delhi NCR.”

Sanjay Sharma, Director of SKA Group, expressed his gratitude to the Chairman and fellow speakers. He said, “Overall, the project timelines have been significantly reduced due to advancements in technology. With these new technologies, we have been able to deliver projects on time and address issues such as leakage problems more effectively. It is imperative that agents are RERA registered, and sales should be conducted exclusively through these registered agents. We provide detailed specifications about our projects, including the exact area and facilities, at the time of booking. All necessary information is made available to buyers upfront.”

Highlighting the funding challenges in the sector and RERA’s role in this, Gaurav Kumar, Managing Director of Capital Markets & Land of CBRE India said, “Customers have been the cheapest source of capital for development projects but developers are currently finding it extremely difficult to secure funding. The market lacks institutional funding sources, and there is no quick fix to this issue. Addressing it will take time, requiring consideration for both customers and developers, as well as lenders. Currently, there is no institutional capital available for developers. In this context, RERA serves not only as a regulatory framework but also as a financial tool to help developers and bring stability to the real estate sector,”

The event concluded with a unified commitment from all panellists to harness a transparent and efficient ecosystem. The discussions highlighted the significant strides made under the RERA Act and the continuous efforts to improve the sector’s reliability and trustworthiness. By leveraging advanced technologies and adhering to strict regulatory standards, the real estate sector aims to achieve higher standards of accountability and satisfaction for all stakeholders involved.