RERA IS OVER - Now its all fine

RERA is over. The hullabaloo is over. Setting the cat amongst the pigeons made many pigeons cause a flutter and fly.. and a few became a prey also. That’s it. The survivor pigeons were not necessarily stronger than the cat – they cannot be – but they were smart.

A very diabolical statement indeed! Let me explain. Every word, every bit of it.

To start with, RERA was meant for the end users and customers. It was meant to set the houses of the openly corrupt-and-dealing-with-slush-money Real estate developers in order. Did it? The jury is still out. Yes, the likes of the Amrapalis and the Earth Infras and the Jaypees have been virtually grounded to dust - though not exclusively because of RERA, but a combination of elements. Their Owners, Partners and the top management are either behind bars or fighting legal battles. Alas, their employees all have huge outstandings to be paid by their companies. The various Departments of the Government all have huge outstandings – the declared and stated but not deposited Provident Funds, the Service tax and the Income tax. Insolvency proceedings aren’t easy – and neither is it easy to extract dues from the defaulters.

Round-1 is over. Thanks to RERA, all outstandings payable by these companies are still outstanding. The Statutory Authorities did not win – afterall, the money is still shown as ‘Receivables’. When will it be received is anybody’s guess. 1 year to 20 years?

Round-1 is over. The hapless customers who had deposited part of their life’s savings with these companies are struggling. Their flats have not been received; no idea or hope in hell of when they will receive their money’s due. The bank loans and interests thereupon are mounting. Both – rent as well as bank loans – are being paid or defaulted, depending upon individual capacity.

Its only now (year 2018) that the Parliament has passed the statute that Fixed income guarantees by Real Estate Developers will be regarded as Ponzi schemes. How much time it will take to be implemented on ground is anybody’s guess.

Round-1. Lets see the banks. It’s an open secret that all Banks had fantastic ‘relationships’ with the Developers and Owners. Credit was advanced – many a times through circuitous entries circumvented through a maze of Companies – and why companies – sometimes even the hapless employees. The money finally landed with the Developer/Owner. For every bad account in the open, there must be several times similar foul accounts. Did Banks win? Credit has gone down, recovery of past dues has reduced or collapsed. 

Round-1. Again, lets see the Developers/Owners who have come out scratchfree. Scathless. The delayed projects required to be registered in RERA have been duly and dutifully registered. Wow! A project that is, say, 50% complete and stopped – has been RERA registered with an unduly long completion/ possession date from now – say, balance works of 12 months have been exaggerated to be completed in 3 years or more. No checks thereby. RERA that has ‘teeth’ to bite the errant Developers in cases of delays retains its teeth while it virtually eschews grass, while the Developers laugh all the way after the revised financial closures of stopped projects.

If at all, only a few big fish have been caught. For every big fish, there are several smaller fish floating – each equally adept in ‘management’ of the system. And this reprieve has created a sense of déjà vu – a sense of invincibility – a sense of being a Sikandar at the game.

Without a strong iron will to follow the errant bankers and the errant players irrespective of their size till their logical end – and in a strictly time bound manner – RERA was born to be a misbegotten child of an optimistic politics. It was never sincerely meant to be a catalyst that brings a change. Some vote bank politics and some vindictive politics against the errants. Achieved!

 Yes, Round-1 is over. Yes, RERA has given rise to smarter companies who have got new sell-phrases like ‘RERA compliant’ to sell again to the same hapless public. With not an iota changed in the way they work, or the way they execute projects, or the way they respect the Professionals, or the Banking System, or the Enforcement Agencies.

Round-2? Everything will fall in place. Carpet Area measurements to Escrow accounts. Certification of money expended on the Project certified by ‘Experts’ – who are supposed to give neutral assessment and certificates vis-à-vis the same managements on which they are totally dependent. Some legal cases will keep going on. New buzz words like Budget housing will favour the policies, and hence the flow of capital into these new segments. Everything falls in place. Perfectly.

AND THATS THE ONLY GOOD PART. ALL IS WELL THAT ENDS WELL. AND ELECTIONS AROUND THE CORNER; POLITICAL MILEAGE HAVING BEEN RECEIVED, THE FEW OUTLIERS HAVING BEEN 'PUNISHED'.. NEW BUZZ WORDS AND NEW SEGMENTS OF CONSTRUCTION GIVEN TO THE SECTOR WITH FAVORABLE POLICIES. ALL IS WELL. WILL BE WELL SOON.