Mumbai: RERA makes smart babus hot property

Even as the government tightens the screws on the construction industry with the Real Estate Regulatory Act (RERA) 2016, developers will find that their new best friends are none other than former government babus. Meanwhile, with their expertise, these ex-bureaucrats are in the perfect position to make a killing from offering consulting services on RERA.

File pic for representation

Leading the charge is Nirmalkumar Deshmukh, former CEO of the Slum Rehabilitation Authority, who has now set up his own consultancy firm - RERA Solutions LLP - in partnership with a former revenue department officer.

"I was aware of the Act and its provisions. Since I retired last year, I started this firm, where we are offering services in a professional set-up. As the Act is very new, many developers have no clarity on it. We are offering them advisory services on RERA and the registration process," Deshmukh told mid-day.

Race to deadline
The transition from the Maharashtra Ownership Flats Act, 1963, to RERA is proving difficult for developers across the city, said another consultant. RERA has shaken up the real estate market in the city, with the new law making immediate registration of all projects mandatory.

Also read: 56,000 buildings in Mumbai do not have Occupation Certificate

With just 37 days to go to the deadline, and with developers still struggling to decode the nuances of the Act and the RERA regulatory authority, it has opened a window for such consultancy firms.

Also read - Mumbai: Developers not raring to go for RERA registrations

And there's more than enough business to go around. According to sources, there are at least 40,000 projects in the city that are in several stages of construction. Of these, only 36 projects have been registered, so far.

Also read: Maharashtra Real Estate Regulatory Authority penalises firm

Several legal and chartered accountancy firms have also jumped on the gravy train, offering advice to developers.

Developerspeak
One of the developers said, "To register with RERA, we have to submit details of the construction cost, like how much will RCC (reinforced cement concrete) cost, what cost will be incurred in flooring and other such details. Earlier, developers didn't have to disclose these details and could quote a total amount to the buyer depending on the size of the house. Now, each and every cost will have to be uploaded during the registration process."

"What a person can view on the RERA website is not even half of what we actually have to do while registering, that is why such advisories are required," the builder added.