PUNE: Kolte Patil Developers said it will start registering its projects with the Real Estate Regulatory Authority (RERA) beginning June 15 as it is a tedious and an elaborate process. So far, only a handful of developers have registered with the authority.
“Basically RERA registration is a tedious job and they have a lot of requirements. So we should be doubly sure before registration. Internally, we have formed a RERA committee of three persons and we have taken two more on-board to take care of the legal and financial aspects. From June 15 we will start registering our projects,” Gopal Sarda, Kolte Patil Developers group CEO, said.
He said the listed-entity is already 85% compliant with many aspects of RERA.
Builders have argued that RERA will push up the cost of the project. Sarda said there will be minor overheads like hiring professionals for compliance, but the project cost will not rise much if people buy at the ‘under-construction’ stage.
“Interest costs will go up if people decide to buy only after a project is complete and this might push up overall costs,” he said.
RERA requires developers to set aside 70% of the collections from sale of a particular project in a separate account and use it only for that project, so that there is more accountability and less round-tripping of funds to different projects.
Kolte Patil also seems to be getting back on track since the jolt in sales from demonetisation. Sarda said the sales momentum in March and April indicated that company is back to pre-demonetisation days. The company sold 217 units in March and 180 units in April, against an average of 150 units, it sells every month.
Hit by demonetisation, the company, in the October to December quarter of 2016 could sell only 0.32 million square feet of area – 39% lower than the same quarter of 2015. In the January to March quarter, the total area sold by the company improved to 0.55 million square feet, slightly less than 0.57 million square feet, it sold in same period of 2016.