RERA in Real Estate: What Buyers and Builders Need to Know
2024-12-23 01:51:26
Developers and experts have raised concerns that the construction ban, enforced as part of the Commission for Air Quality Management’s (CAQM) Stage IV measures under the Graded Response Action Plan (GRAP), will significantly impact builders, homebuyers, and the livelihood of construction workers. A one-month halt in construction can delay projects by two to three months as laborers often leave for other jobs or return to their hometowns.
Stage IV of GRAP is implemented when the Air Quality Index (AQI) surpasses 450, indicating "severe plus" conditions. This stage includes a complete ban on construction and demolition activities across the National Capital Region (NCR), along with school closures and vehicle restrictions. On November 18, 2024, Delhi’s AQI reached 485 at 8 a.m., deteriorating to 490 by 1 p.m.
GRAP comprises four pollution stages based on AQI levels:
Key restrictions under Stage IV include:
State governments can decide on additional measures like school closures, limiting non-essential commercial activities, and odd-even vehicle rules.
Developers argue that while the measures address critical environmental issues, their broad application harms the construction industry, particularly daily-wage workers. G Hari Babu, National President of NAREDCO, highlighted that halting construction disrupts timelines and the financial ecosystem, from contractors to suppliers. He urged authorities to exempt RERA-compliant projects that already adhere to strict environmental norms.
Kushagra Ansal, Director of Ansal Housing, echoed the sentiment, emphasizing the need for a balanced approach that considers environmental and economic realities. He warned of penalties and financial hardships due to project delays and stressed that RERA-approved projects should be excluded from the blanket ban.
Homebuyers also feel the pinch. Chetan Jaiswal, an investor in an under-construction project along Gurugram’s Dwarka Expressway, expressed frustration over further delays in a project already behind schedule. Rajiva Singh, President of the Noida Federation of Apartment Owners Associations, noted that some construction activities continue at night despite restrictions. He called for greater accountability from developers to prioritize environmental responsibility.
While developers and homebuyers recognize the need for pollution control, they advocate for a targeted and nuanced approach to avoid unintended consequences that disrupt livelihoods and delay housing projects.
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