The Real Estate Regulation Act came into force from 1 May 2017.
It promises of protecting the right of consumers and bringing about transparency in the real estate sector in India.
The government describes the implementation of the consumer-friendly Act as the inception of an era where the consumer is the king.
Real estate sector has also welcomed the implementation of the Act. Real estate sector thinks that it will bring a paradigm change in the way the Indian real estate sector functions.
RERA is Real Estate Regulation and Development Act 2016. Generally, we call it Real Estate Regulatory Authority. RERA is now supreme regulatory of the real estate sector.
RERA is very first act pertaining to the real estate sector in India. Aimed to regulate and make the sector transparent for stakeholder; home buyers, investors, financial institutions and allied sectors.
Due to rising complaints of home buyers about serious frauds of developers, govt. passed RERA Act 2016 in Parliament. It has very serious provisions-
All developers their projects and brokers should be registered.
Without registration sale, purchase and even promotion is punishable.
RERA has prolonged provisions to update A to Z information of projects, developer, finance, land bank, layout and many other things which common home buyers can’t even imagine.
Developer and can’t deviate from said promises means submitted plans of construction, delivery, amenities, specifications and facilities. Doing so will be punishable.
Various sections of RERA Act has provisions of Forensic audit, take over of the project, invites bid for completion from other builders, order jail term, issue RC (recovery certificate) from builders etc.
Similar kind of provisions have been given for brokers and home buyers too.
Conclusion
Finally, it can be said that the new legislation is a welcome enactment. Eventually the benefit of any statute is based on its effective implementation. Till now, only a few States have notified their rules despite a model set of rules. If an existing authority is designated to take additional charge as the real estate regulator, it will make the Act ineffective as that would affect the timeliness prescribed under the Act.