Grant Thornton FICCI survey says 45% developers have no formal process in place to manage compliance mechanism of RERA

As per the latest RERA survey by Grant Thornton in India and industry body, FICCI, 45 per cent of the real estate developers have no formal process in place to manage compliance mechanism of RERA and about 44 per cent have made some modifications to their MIS (Management Information System). The survey report also reveals that majority of the board/senior management (78 per cent) are using common methods like excel based MIS reporting to review RERA compliance.

The report – RERA: How you are gearing up for Compliance, compiles the key findings of the joint survey conducted to assess the readiness on the compliance side of the real estate developers.  

Commenting on the survey report, Neeraj Sharma, Director, Grant Thornton Advisory Private Limited said, “Like any other major reform, RERA has its own sets of initial challenges, which are causing disruption in the sector. However, everyone including the developer fraternity, is positive about the long-term impact of RERA. The survey has pointed out some very interesting perspective on how developers are gearing up for this big change and making appropriate changes to their systems and processes in addition to identifying areas where more focus is needed.”

When asked about the initiatives taken to strengthen project planning for timely completion of projects, more than 50 per cent of the respondents expressed that a focused approach to enhance skillsets of internal teams with trainings is crucial. In fact, over 75 per cent developers have used training as a tool to improve customer experience.

However, 37 per cent respondents felt the need to hire independent experts as Project Management Companies (PMCs) to manage their projects.

When it comes to the agreements that have undergone changes in their key terms post RERA implementation, more than 70 per cent of the developers felt that major changes have been made in both customer and vendor agreements, which establishes that post RERA, developer and vendor share equal liabilities under the contract.