Only 22% Homebuyers Satisfied with RERA Grievance Redressal System
<span style="font-weight: 400;">Around 70 per cent of consumers are aware of realty law RERA and five out of six homebuyers seek grievances redressal through this legislations, according to a survey by Omidyar Network India and Boston Consulting Group. However, the report pointed out that the implem
Published -
Jul 30, 2021 4:10 AM
Around 70 per cent of consumers are aware of realty law RERA and five out of six homebuyers seek grievances redressal through this legislations, according to a survey by Omidyar Network India and Boston Consulting Group. However, the report pointed out that the implementation of the grievance redressal process still has many gaps as "only 22 per cent of the consumers involved in a grievance redressal process were satisfied due to the uncertain timelines involved". The report is based on the interactions with over 1,300 customers, developers, regulatory authorities, and relevant stakeholders like chartered accountants, engineers, and architects from Maharashtra, Uttar Pradesh, Madhya Pradesh, Orissa, and Karnataka. The survey found out that the law has created an implicit trust in homebuyers because of the usage of RERA registration of properties as a marketing tool and creation of escrow account for each projects to park customer’s advances to build projects. According to stakeholder perspectives, RERA has been effective in increasing consumer confidence and greater accountability. In its survey findings, the report suggested that around 70 per cent of consumers surveyed are aware of RERA but it is limited to main benefits. Among those who are aware of the RERA, 71 per cent are satisfied with the law. "76 per cent of consumers who were aware of RERA only plan to buy RERA-registered properties. Five out of six consumers seek redressal through RERA," the report said. Among developers, 64 per cent of those surveyed were highly satisfied with the RERA authority. 77 per cent of all eligible projects have been registered under RERA. The report said that 55 per cent of developers surveyed were also able to secure loans more easily due to RERA. However, the ONI and BCG survey pointed out that there is a lot of work to be done to streamline the understanding of the provisions of RERA, increase stakeholder confidence through even greater transparency and improve the grievance redressal process. Only 14 per cent of all potential homebuyers have visited their relevant RERA site, and 24 per cent of these consumers said that they were satisfied with the online experience "45 per cent of all developers surveyed reported dissatisfaction with the RERA website," it said. The report shows that in the last 5 years, RERA has begun moving in the right direction, increasing consumer confidence in the real estate sector, Kumar said. "However, the report also points to need for more focus on greater consumer awareness, better RERA websites & focussed grievance redressal to further improve consumer confidence in the sector," Kumar said. Neetu Vasanta, Managing Director and Partner, BCG, said it is great to see the boost in consumer confidence that has been created by RERA over the last 5 years in the Real Estate Sector.
Tags : News/Views homebuyers RERA Satisfied Grievance Redressal System