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April 23, 2024
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RERA Act a Bane or Boon! A revolutionary change for Real Estate Industry in India

RERA Act: Only Four States with Permanent Regulators, Rest Supported by Interim Regulators

RERA Act: Housing is one of the fundamental requirements of humans, as is well-known. Access to adequate accommodation can be a prerequisite for the enjoyment of several human rights, including the rights to work, health, social security, suffrage, privacy, and education. Humans have an inherent requirement for safe, secure, and adequate accommodation, tells Ashwani Joshi a renowned social activist from Nawanshahr who as State convener led successfully the interests of plot holders and dealers of the Punjab against the Punjab Government’s unauthorised colonies dithering policies in 2013.

Recognizing the severity of the housing crisis, international and regional human rights laws have recognized the right to accommodation as an individual’s fundamental right. By international human rights law, several states have fashioned their legal systems to include the right to accommodation as a fundamental citizen right.

As housing is a vital contributor to economic, social, and civic development, the primary goal of this act is to bring accountability and transparency to real estate transactions to simplify them. Many purchasers are aware that RERA was implemented to defend consumer rights. The RERA Act focuses primarily on the consumer’s major concerns regarding incorrect information about projects by promoters, mismanagement of funds, and delays in real estate project completion.

In the benefit of public had a detailed talk with Adv Govind Bali from Fast Track Legal Solutions New Delhi and thus presents as follows:

The Indian judiciary has interpreted the right to accommodation within the context of the right to life guaranteed by Article 21 of the Constitution, demonstrating commendable concern for this right. It has been observed that the demand for accommodation has increased substantially over time. The Real Estate Regulation Act (RERA) was enacted on 1 May 2016 and went into effect on 1 May 2017 to highlight its significance and increase transparency.

The Real Estate Regulation and Development Act of 2016 (RERA) is a revolutionary act of the Indian parliament in the annals of the Indian real estate industry. The real estate law was enacted by the Rajya Sabha on March 10, 2016, and by the Lok Sabha on March 15. In addition, the President signed the measure into law on March 25, 2016. Including the fact that our honorable President published the act on March 26, 2016, and that it was published in the Official Gazette.

For the regulation and promotion of the real estate sector, a bill to establish the real estate regulatory authority to ensure the sale of plots, apartments, and buildings, as well as the sale of real estate projects, or to protect the consumer’s interest in the real estate sector, and to establish a mechanism for expeditious, efficient, and transparent resolution of disputes.

According to RERA, each state and union territory will have its own set of regulations and regulators to govern the operation of regulators. The rules for all Union territories, including the nation’s capital, were formulated by the center. Many of the states have notified RERA rules and a regulatory body will begin to operate, whereas many states are still behind schedule.

The notified states till 31st July 2017 are Madhya Pradesh, Maharashtra, Rajasthan, Gujarat, Andhra Pradesh, Bihar, Chattisgarh, Haryana, Karnataka, Kerala, Uttarakhand, Odisha, Punjab, Tamilnadu, and Uttar Pradesh. In numerous locations, land acquisition has become a concern. Without the approval of plans, delinquent builders frequently sell poor-quality construction projects to investors, as well as projects that become bogged down in litigation, etc. RERA aims to resolve issues such as construction delays, cost, quality, and other modifications. The purpose of the act is to increase sector transparency and encourage ethical conduct.

What Does RERA (Real Estate Regulatory Act) Entail?

The Real Estate (Regulation and Development) Act, 2016 (RERA) is a statute enacted by the Indian Parliament. The RERA aims to protect the interests of homebuyers and increase investment in the real estate industry. On March 10, 2016, the Rajya Sabha passed the RERA law, followed by the Lok Sabha on March 15, 2016. It came into effect on May 1, 2016, when 59 of its 92 sections were notified, and on May 1, 2017, the remaining provisions took effect. The federal and state governments must notify their own rules under the Act, based on the model rules drafted under the federal Act.

The Act’s primary goals are as follows:

Assuring Transparency in the real estate sector with regard to the sale of flats, apartments, sites, structures, and any other type of real estate project.
Establishing a mechanism for expeditious resolution of disputes through adjudication.

Protecting the interests of purchasers and allottees in the real estate market.
Using authority as a conduit to establish a bridge of trust between customers and promoters.

As a result of the increase in disputes between purchasers and promoters, the Government of India has enacted the Real Estate Regulatory Act, which stipulates that promoters must adhere to certain requirements to legally construct or sell a project.

In India’s real estate industry, RERA has brought about significant adjustments. The purchasers have found great solace in the government’s unwavering commitment to upholding fair play in the real estate industry, which pertains to a private sector such as the real estate market. In addition to the purchasers, the promoters, and the real estate agents who adhere to government regulations but incur losses as a result of some promoters’ unethical practices, real estate agents will also experience happiness and satisfaction.

Currently, only four states have established their permanent regulators.
Madhya Pradesh, Maharashtra, Punjab, and Gujarat. The remaining states are supported by interim regulators. Only 23 states/territories have notified the Act’s rules, while six states have drafted the rules but have not yet been notified.

Accountability of promoters and developers, and establishing effective forums for redressing complaints. Due to the highly corrupt sector’s stringent rules and regulations, this will result in a decrease in litigation.

In the context of the rapid transformation of the nation over the past few decades, there has been a growing focus on the constructive urbanization process as the nation endeavors to increase its capacity to meet its developmental requirements through urbanization. A standardized Real Estate Regulation Act is required in a country like India in order to have uniform standards across the country and to bring transparency to real estate transactions.

In terms of consumers, promoters, builders, etc., the implementation of RERA is a decisive step in the correct direction. In the future, along the lines of RERA, the modernization of land records, land acquisition, and the Goods and Services Tax (GST) could also be prioritized for the expansion of the real estate industry. Builders, promoters, agents, and allottees are required to adhere to the project specifications, project agreements, and regulatory frameworks.

It should also be emphasized that real estate entities must ensure that the properties of allottees are well-maintained and that residents are satisfied with the conditions of their properties. The Real Estate Regulation and Development Act (RERA) is a significant step in ensuring greater accountability of real estate developers and agents to consumers and the government.

The Real Estate Regulatory Authority (RERA) is committed to the successful and effective implementation of the country’s real estate law and has taken relevant and consistent measures for the sector’s progressive growth in the country. In order to promote the sustainable development of the RERA, as well as a customer-friendly environment, various policy measures integrated under the RERA would unquestionably bring about remarkable changes in economic and social transformation.

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