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Banks to Shun Builders Without RERA Registration
August 10, 2017
Builders who are trying to beat the new Real Estate Regulation Act(RERA) are likely to lose the battle soon as the lenders have now decided to stop extending loans to those who haven’t completed the RERA registration.
According to a senior bank official, adhering to the RERA regulations will safeguard the interests of the bankers and help eliminate the unethical operators from the system. So, in consultation with the Reserve Bank of India, the lenders have decided to support RERA by restricting funds allocation to the non-RERA-registered entities.
Lenders are also seeking additional collateral for added security against the real estate developers.
