NEW DELHI: Housing and Urban Affairs Minister Manohar Lal Khattar has requested information on the number of real estate projects that have had their deadlines extended, as well as actions taken against developers with incomplete projects despite receiving three extensions. This request arises amid increasing concerns regarding builders’ failure to meet project completion commitments under RERA.
According to the minutes from the latest Central Advisory Council (CAC) meeting—which included representatives from state RERAs, state governments, consumer bodies, and builders—Khattar’s request followed comments from Haryana RERA Chairperson Arun Kumar. Kumar noted that the project completion timeline is established by the promoter during registration, stating, “If the promoter fails to deliver the project within this time frame, delay possession charges will apply.”
Khattar also emphasized that state regulations for the sector should undergo vetting at the central level for uniformity. He called for accountability for banks that improperly withdraw funds from escrow accounts.
An escrow account for a housing project is managed by a bank, which holds homebuyers’ funds and only releases them to the builder upon the achievement of specific project milestones. This ensures that the money is used exclusively for construction and development purposes.
During the meeting, homebuyer and consumer representatives brought attention to ongoing delays in completing promised amenities and adherence to approved layouts, even in projects commenced after RERA was enacted to streamline the sector and ensure timely project delivery. They also pointed out inconsistencies in state regulations and the failure of state RERAs to enforce their orders.
A representative from a flat owners’ association noted that parent companies remain legally protected even if their subsidiary firms face insolvency. Khattar acknowledged this issue, stating, “There should be clarity on where responsibility lies.”
Addressing the matter of project de-registration, the Haryana RERA chief mentioned that some developers have yet to commence work or meet audit requirements despite having been registered for a considerable time. He stressed the necessity of evaluating how such cases should be managed under Section 8 of RERA, which pertains to de-registration.
