NEW DELHI: Real estate will play a key role in building the physical foundation for a developed India by 2047, said Devesh Singh, member, Real Estate Regulatory Authority for NCT of Delhi.
Speaking at ASSOCHAM’s real estate conference held in New Delhi, Singh said India’s economic growth will be delivered through cities, homes, offices, markets, industrial parks, technology parks and infrastructure corridors.
“Growth will not happen in Parliament or in the office of policymakers. This growth will happen in our cities, in our homes, in our offices, in our markets and along our highways,” he said. Singh said regulation should not be seen as a barrier to business, adding that deregulation is not the same as freedom.
“Deregulation is not freedom; it comes with a risk,” he said. According to him, the absence of sector-specific regulation before 2016 led to failed projects, disputed land titles, stuck buyers and weak investor confidence.
The Real Estate (Regulation and Development) Act, 2016 created a sectoral framework that improved accountability and confidence, he said.
“The question is not whether we should have more regulation or less regulation. The question is that we should have regulation which caters to the market in a trustworthy manner,” Singh said.
He said RERA is often viewed as a pro-consumer law, but it is not anti-developer. RERA benefits serious promoters by giving registered projects legitimacy, improving marketability and helping developers access funding, he said.
If a project is registered with the real estate authority, due diligence is presumed, including on land title and statutory approvals, Singh said.
He added that banks and vendors often treat RERA registration as a precondition for project financing or support. The law also gives promoters legal protection in certain cases, including extensions for force majeure or unavoidable circumstances. It also allows changes in building plans with the consent of two-thirds of allottees.
Singh said mandatory registration and disclosure are among the key pillars of RERA. Developers are required to disclose details such as their background, past projects, sanctioned plans, layout plans, environmental clearances, fire safety approvals and other project information. This reduces information asymmetry and helps buyers make informed decisions, he said.
He also highlighted the escrow mechanism, under which 70% of the money collected from allottees must be used only for land and construction costs. The provision is aimed at preventing diversion of funds and ensuring availability of money for project completion, he said.
Another safeguard is the rule that a promoter cannot collect more than 10% of the apartment cost before entering into a registered agreement to sell with the buyer. Singh said this creates a formal legal relationship between the promoter and buyer and defines the responsibilities of both parties.
