Prelaunch promoters typically identify a location, offer an advance to the owner without getting RERA approval, run social media campaigns, and then sell apartments to individuals for a low price. Infrastructure will then be built there after that. After receiving RERA approval, the project will begin.
Now, HMDA is selling government land at excessive costs without building any infrastructure. It does this by advertising in newspapers, hosting preemptive meetings with potential buyers, and creating rivalry amongst bidders. Within 30 to 60 days after receiving the buyer’s payment, it will begin the development process.
Here, the only difference between a private promoter and HMDA is that the former is an outsider and the latter is a government organisation. However, if we thoroughly examine the gameplay, we see that plots are being sold first. After collecting the advance payment, they are gradually building the infrastructure there. Now the issue is: shouldn’t RERA give its consent before auctioning off the HMDA lands? If this is the case, experts wonder what differentiates HMDA from a private promoter. The Centre should amend the RERA Act so that HMDA also gets RERA permission before auctioning the lands and plots. Changes should be made to the law to require RERA compliance from businesses, municipalities, urban development agencies, and others that wish to submit bids.
