Rajahmundry: The implementation of RERA will cause cost escalation of a housing project to the tune of Rs 250 per square feet additionally.
Builders say on an average, on a 2-BHK flat, GST to the tune of Rs 1.5 lakh and RERA of Rs 2.5 lakh, with a total of Rs 4 lakh will be imposed, causing more financial burden on middle income group home buyers.
On electrical goods meant for usage in the housing project, the Centre has imposed GST to the tune of 28 per cent and with defect liability on workmanship, the builder is supposed to use only branded products, which are more costly and this will result in cost escalation on the project.
Though the Centre has given three months’ time to register the housing projects on RERA web portal from May 1 onwards, the state government has not yet created such portal and the builders are in a fix as they are unable to register their projects. Builders allege that several provisions in the Act are very cumbersome.
