The Real Estate (Regulatory and Development) Act of 2016 (RERA) has significantly transformed the real estate sector in India, ensuring greater transparency and financial discipline in housing projects. The Economic Survey of 2023-24, presented in Parliament, highlights the impact of RERA, with over 1,24,947 complaints disposed of by Real Estate Regulatory Authorities across 32 states and union territories.
A New Era of Transparency and Accountability
RERA has introduced a citizen-centric approach to real estate regulation, mandating the registration of real estate projects and agents, and requiring detailed disclosures on project amenities, delivery timelines, and financial transactions. The Act stipulates that 70% of the funds collected from homebuyers must be deposited in a separate account dedicated to project construction and land costs. This measure has significantly reduced the misuse of funds and ensured that homebuyers’ investments are safeguarded.
Fast-Tracked Dispute Resolution
One of the key features of RERA is its fast-tracked dispute resolution mechanism. Homebuyers can now seek redressal of their grievances through state-level Real Estate Regulatory Authorities, which provide a more efficient and specialized forum compared to traditional consumer courts. The Economic Survey notes that before the enactment of RERA, homebuyers had to rely on consumer forums established under the Consumer Protection Act of 1986 for resolving disputes, which often resulted in lengthy and complicated processes.
Strengthening Homebuyer Protections
RERA has reinforced the rights of homebuyers by mandating the execution of an “agreement to sale” at the time of project registration. Furthermore, any changes to project layout plans require the consent of two-thirds of the homebuyers, preventing developers from making arbitrary modifications. The Act also aligns with the Insolvency and Bankruptcy Code (IBC), treating homebuyers as creditors and ensuring that resolution plans for real estate projects are RERA-compliant.
Significant Registrations and Compliance
Since the implementation of RERA, more than 1,30,186 real estate projects and 88,461 real estate agents have been registered under the Act. These registrations reflect the widespread adoption of RERA’s regulatory framework, which has brought a significant level of standardization and professionalism to the real estate industry.
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Conclusion
The Real Estate (Regulatory and Development) Act of 2016 has played a crucial role in reshaping the Indian real estate sector. By ensuring transparency, financial discipline, and fast-tracked dispute resolution, RERA has restored confidence among homebuyers and set a new benchmark for accountability in real estate transactions. As the sector continues to evolve, RERA will remain a cornerstone of regulatory oversight, protecting the interests of homebuyers and fostering sustainable growth in the real estate market.