Comments on: Building trust /real-estate-sector-loopholes/ Thu, 16 Jun 2022 07:04:46 +0000 hourly 1 By: Arvind Mathur /real-estate-sector-loopholes/#comment-1721 Sun, 23 Jun 2019 15:24:09 +0000 /?p=135184#comment-1721 You mention that RERA has caused’ increase in project costs, tighter liquidity, higher capital cost and an increase in the project timelines’.

This is not the case in reality.

There were several hidden project cost-overruns in the pre-RERA era. Project timelines were not short too…..there were massive delays. RERA will make project cost and project timelines more transparent to the customer as well as realistic.

Because of this, RERA will enable developers to attract more private equity and debt as the market matures further. In this manner, RERA will enhance liquidity for good developers like the Tata’s. RERA will bring more trust between the developer, private equity funds and the customer, thereby enhancing liquidity and profitability.

Also there is an anti-customer bias in the article. The problem of customer default has to be solved via good customer selection. The 10 per cent penalty is quite reasonable.

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