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Builders will have to give 5-year warranty against structural flaws as per RERA
The Economic Times
While RERA or Real Estate (Regulation and Amendment) Act, 2016, will slowly change the way the real estate industry operates in India, the Act has also thrown open a few aspects that need extensive deliberation. One such issue is the liability of developers to provide for workmanship for structural defects for a period of five years. RERA lays down that "In case any structural defect or any other defect in workmanship, quality or provision of services or any other obligations of the promoter as per the agreement for sale relating to such development is brought to the notice of the promoter within a period of five years by the allottee from the date of handing over possession, it shall be the duty of the promoter to rectify such defects without further charge, within thirty days, and in the event of promoter's failure to rectify such defects within such time, the aggrieved allottees shall be entitled to receive appropriate compensation in the manner as provided under this Act." Undoubtedly, this is the first time that such a provision has been introduced and its applicability may become a headache for developers in times to come.
AUCTION OF PRAGATI MAIDAN LAND FOR FUNDS
The Times of India
The India Trade Promotion Organisation (ITPO) will auction 3.7 acres prime land in Pragati Maidan to raise funds for building the country's biggest exhibition-cum-convention centre. The money will be used to build a 500-room hotel for guests. Announcing this, ITPO chief L C Goyal said that the project would require Rs 2,250 crore. ITPO will pump in about Rs 1,200 crore. "The Cabinet has approved that we can raise institutional loan from banks and financial institutions. We have about 3.7 acre land, which we will be monetising. I personally feel that the successful bidder should get this land on freehold. But the decision will be taken by the Union Cabinet. We are moving a proposal seeking Cabinet nod," he added. Goyal said another Rs 800 crore will be spent for overhaul of the road infrastructure and connectivity around Pragati Maidan. At least 80% of this amount will come from the urban development ministry.
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