Tag: rera-india

Buying a house is one the biggest investments you will make in your lifetime. A wrong property choice or decision, especially in the case of under-construction property, can land you in big trouble. Many homebuyers are waiting for more than decade to get possession of their houses. Numerous projects either got shelved or stalled in between, after accepting significant payments were made by buyers. There is no sign of refunds even after years fighting court cases.

So, to minimize the risk, here are few sources of information that you should tap, before taking the leap.

The RERA website: The real estate (regulation and development) Act, 2016 makes it mandatory for the developer, its projects and agents to obtain a registration number. Each project should have a separate registration number and the same should be mentioned in all advertisements and communications with the buyers. The first step should be to cross-verify the RERA registration, on the RERA website of the respective state.

“Homebuyers can log in to the RERA website and check a promoter’s details including name, contact information and project details of the past five years. This will help buyers understand the competency of the builder,” says Anupam Rastogi, Co-Founder and Head-NRI Sales, Square Yards.

“One also has access to project details such as project name, type, address, project area, approving authority, parking area, project status, estimated cost of construction, completion year and total project cost. Homebuyers should carefully check the details of construction work done under the ‘project status’ section. Information such as the extent of development pending, total amount collected from allottees, amount invested in the project, delay in projects, reasons for delays and expected completion date are indicators of the developer’s credibility and thus must be duly scrutinized,” added Rastogi.

Beside these, you should also check whether all the required approvals and permission to build and complete the project are available; a developer is required to upload and update all these documents on RERA website on a regular basis. Developers are also required to upload details of any cases filed against them, make sure you collect at all this information.

Financials and annual report: A lot of homebuyers are suffering because of financial mismanagement and siphoning of funds that developers indulged in during the past. Therefore, financial scrutiny and due diligence are a must. “Whether or not the project will be delayed and have the same quality as the builder promised initially depends entirely on how financially stable the builder is. This is why having a clear understanding of your builder’s monetary position is important. While the financial health of a listed builder is easy to gauge by gathering all the information they share with the stock exchanges, doing so might be difficult in case of unlisted players,” says Mani Rangarajan, Group COO, Housing.com, Makaan.com and Proptiger.com.

“It is imperative for homebuyers to verify the financial status of a real estate developer to get an idea about its balance sheet, legality of the project and whether it has defaulted on loan payments for banks, which in turn can save buyers from future project completion harassments,” says Rastogi.

If a developer is not listed, there are other ways to check the financials as well. “For other developers, buyers can get their financial information on the Ministry of Corporate Affairs (MCA) website, in the ‘view public documents’ section. Homebuyers can also check the website of the Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI) to check whether the property is mortgaged with any bank or housing finance company,” says Rastogi.

Visit previous projects: It is good to have feedback on construction quality and after-sales services from homebuyers who are already living in the projects developed by the builder. “Property owners here will be able to share their experience with the builder, helping you gauge what is in store for you if you were to invest in a property developed by the builder,” says Rangarajan.

“Homebuyers can get a sound idea about the quality of materials used in construction, kind of fittings and electrical equipment used, the type of amenities on offer and whether the amenities are charged separately, or cost is included in total cost of the apartment,” says Rastogi.

Explore newspapers and social media: Newspapers and social media platforms such as Facebook, Twitter and LinkedIn and so on can help you get first-hand information. “Today, social media platforms act as a great tool that empower homebuyers by quick dissemination of information. The same has remained true of the media for a long time. A buyer who is looking to invest must get in touch with property owners and prospective buyers through social media to inquire about builders and housing projects. They must also follow real estate news in the media to have a better understanding of the sector in general and developers in particular,” says Rangarajan.

Feedback of homebuyers can help you make a good decision. “Social media sites are a perfect medium to read about client testimonials and homebuyers’ satisfaction stories,” says Rastogi.

Never make a property buying decision in a hurry or under the influence of any pressure tactics of the developer’s representative or real estate agent.

Ask for written documents or emails of all the claims and promises made by the developer or real estate agent.

Source: https://www.moneycontrol.com/news/business/personal-finance/planning-to-buy-a-house-get-all-details-about-the-developer-from-these-sources-7100991.html

Five years after the enactment of the Real Estate Regulation Act (RERA), the law much-needed has not only transformed the real estate sector but is also becoming the force it was meant to be.

The law, which became a reality in the first week of May 2016, has acted as the biggest catalyst in giving a formal structure to the real estate sector in the country and has allowed the property buyers to get heard and address their concerns and complaints.

RERA has brought in the much required standardization in the industry, it is bringing more trust from all the stakeholders. For example, it has clearly defined what the carpet area means and how to calculate it. It has thus removed ambiguities involved in the measurement of the carpet area and reassuring the trust of the home buyers in the process.

It has also reassured the buyer that the money he/she has invested for the purchase of a home in an under-construction project would be utilized for the completion of that particular project. As per the RERA guidelines, builders must open an escrow account and deposit 70% of the money collected from buyers into it and withdraw money from the account only for buying raw material for that project only.

The provisions of the RERA require the builders to update on regular intervals about the construction status of the projects, which instills confidence among the buyers of property in the projects.

“As we look back at five years and how RERA has performed, I think it has been helpful in establishing mutual trust among the buyers and the builders. It has also brought in a lot of discipline among the builders who now have to give timely updates on construction to the authorities. In a way, RERA certification to any project makes it a branded product,” said Pradeep Aggarwal, founder & chairman, Signature Global Group; chairman, ASSOCHAM, National Council on Real Estate, Housing and Urban Development.

Although RERA became a law after the Bill was passed by both houses of the Parliament and a notification issued by the central government, it was for the states to set up their own RERA Authorities. Some of the states were slow in setting up RERA authorities in the beginning but have now embraced the game-changing law. As many as 30 states/UTs have set up Real Estate Regulatory Authority and 28 of them have set up Real Estate Appellate Tribunal as mandated under the law as of April 2021.

“Property buyers are more inclined to buy RERA registered projects as the judgments and decisions taken by RERA over the years gives them confidence. The authority does not only ensure customers are satisfied but also safeguards builders’ interest. Developers also are at an advantageous position as they can procure project finance relatively easily if the project is registered with RERA,” said Prateek Mittal, executive director, Sushma Group.

Even the number of complaints taken up by the various state authorities has steadily risen over the last five years. Over 65,539 complaints have been solved by RERA across the country. This number was 48,556 until May last year. Some of the states like Uttar Pradesh were slightly slow to set up RERA Authority and take up a complaint of the buyers but now the state has topped in the number of complaints being duly addressed and then disposed-off.

“It is so heartening to note that rera has completed 5 years. It is a milestone initiative of the government that has brought much needed accountability and transparency in real estate. Serious and dedicated developers like us have benefitted from rera. But, the biggest winner has been the buyers who are now getting timely delivery and quality construction all across. I congratulate the Rera authorities on successful completion of 5 years,” said Manoj Gaur, CMD, Gaurs Group and VP – North, CREDAI National.

RERA makes it compulsory for the brokers and property agents also to register with the respective state authorities. Over 50,256 brokers have been registered across the country with various state RERA authorities.

“The brokers often from the most quintessential part of real estate deal, be it in the primary market or secondary market. Their registration under RERA has ensured that all stakeholders of the real estate industry are involved which is a good thing in the long run,” said Ankit Kansal, founder and MD, 360 Realtors.

Solving of complaints at the RERA level has also ensured that fewer cases go to courts, saving a lot of time and money for both buyers as well as builders.

“RERA Authorities are solving bulk of the buyers’ complaints and this ultimately translates to much less pressure on the judicial system, as these cases would have otherwise clogged the courts which are already overburdened,” said Kushagr Ansal, director, Ansal Housing and president, CREDAI – Haryana.

The RERA has brought in much needed accountability and thereby transparency in the real estate sector. This will enable the country’s property market to become a trillion-dollar industry in the coming decade, accounting for over 13 percent of the economy.

Source: https://www.constructionweekonline.in/business/17617-five-years-of-rera-have-transformed-the-realty-sector

The Union government’s policies over the last six years have restored the faith of consumers that they can own homes of their own and rely on laws to support them if builders fail to deliver on time, Prime Minister Narenda Modi on Friday said while laying the foundation stone of the Light House Project under the Global Housing Technology Challenge-India scheme across six states.

The project aims to construct of low-cost houses using alternative global technologies, materials and processes in six cities — Indore (Madhya Pradesh), Rajkot (Gujarat), Chennai (Tamil Nadu), Ranchi (Jharkhand), Agartala (Tripura) and Lucknow (Uttar Pradesh). About 1,000 houses at each location, along with allied infrastructure facilities, are meant to be constructed in a year’s time.

Six chief ministers were present for the meeting, Shivraj Singh Chauhan from MP, Yogi Adityanath from UP, Biplab Deb from Tripura, E Palanisami from Tamil Nadu, Jagan Reddy from Andhra Pradesh and Hemant Soren from Jharkhand.

Referring to the project, which he described as an incubation centre, the PM said the government was committed to delivering on its promise of “housing for all” by 2022, and was unwavering in its vows to provide affordable housing for the rural and urban poor, and affordable rented accommodation for migrant workers.

The latest project, Modi said, will also strengthen cooperative federalism.

“People were losing hope of owning a house even after putting in everything that they had saved. Houses remained on paper… People had also lost faith whether the law of the land will help them if they got into a dispute with the builder,” he said.

To address these concerns, steps taken by the government over the past six years have made it easy for a hardworking, middle class family to own a house and restored their faith, Modi said.

His reference was to RERA, or the Real Estate Regulation Act, introduced in 2016 to protect the interest of homebuyers from malpractices and builders defaulting on deliveries.

“RERA has helped the people believe in reality projects again and that the projects will be completed. Today, 60,000 real-estate projects are registered under RERA. Thousands of cases have also been solved under the law,” Modi said.

Even as the PM appreciated the efforts made by the states in providing housing for the poor; he criticised previous governments for not prioritising the sector. “Housing plans were not the priority of the central government in the past. They did not care about the details of quality of construction. There was a chalta hai, chalne do (let it be) approach… why shouldn’t the country get new technology, and the houses we build should be chust (swift) and durust (sturdy),” he said.

The Prime Minister also announced the winners of the Affordable Sustainable Housing Accelerators — Uttar Pradesh topped the list followed by Madhya Pradesh, Andhra Pradesh, and Tripura.

Source: https://www.hindustantimes.com/india-news/farm-law-protests-its-towers-vandalised-in-punjab-reliance-says-will-move-high-court-today/story-sPdZtvf3326NqGk596sj2O.html

Prime Minister Narendra Modi on Monday said that there was a trust deficit between builders and home buyers, and the Real Estate Regulatory Authority (RERA) Act was introduced to remove this problem.

While inaugurating the construction of the Agra Metro project via video conferencing, Modi said, “People with wrong intentions brought disrepute to the entire real estate sector, upsetting our middle class.”

The prime minister said that there was a trust deficit between the builders and the home buyers, and the RERA law was introduced to remove this problem. He added that some recent reports showed that middle class homes were getting completed quickly after the introduction of this law.

He also said that all-round development, from modern public transport to housing, was going to make life easier in cities.

Noting that the Pradhan Mantri Awas Yojana was inaugurated from Agra, the prime minister said that more than one crore houses have been approved for the urban poor under this scheme.

Modi said help is being provided to middle class families of the city to buy houses for the first time. He said so far, more than 12 lakh urban families have been given help of about ₹28,000 crore to buy houses.

The prime minister said infrastructure like water and sewer are being upgraded in several cities under the AMRUT mission, and help is being given to local bodies to make public toilets better in cities and to implement a modern system of waste management.

“Dreams of today’s new India are big (‘badhe’) and enormous (‘viraat’). But, visualizing the dreams is not enough, courage is needed to fulfil them. When you move ahead with courage and dedication, no obstacle can stop you. The youth of India and smaller cities are displaying this courage and dedication,” he said.

“The role played by metro cities in the 20th century is now being played by smaller cities like Agra,” the prime minister said.

He said that metro rail coaches are being made in India under the Make in India mission. When it comes to the matter of metro network, India is becoming self-reliant, he said, and added that Agra is the seventh city of Uttar Pradesh to have the metro rail facility.

“Agra has an age-old identity. Now, a new dimension of modernity is getting attached to it. The city which has treasured history of hundreds of years is all set to march in tune with the 21st century,” Modi said.

“In the past six years, the speed and scale with which work has been done on the metro network in UP and in the country, shows the identity (‘pehchaan’) and commitment of the government,” he asserted.

Modi also remarked that cities of western UP have everything, which is needed for self-reliance.

“The farmers here have a tremendous potential. In the matter of animal husbandry, this region is a leader in the country. There is a huge scope for the dairy and food processing industry here, and this region is also moving ahead in the service and manufacturing sector,” he said.

He added that with modern infrastructure and modern facilities, this potential of western UP is increasing.

The first Rapid Rail Transport System (RRTS) is being constructed between Delhi and Meerut, he said, adding that a 14-lane expressway between Delhi and Meerut will soon serve people.

Source: https://www.livemint.com/news/india/rera-act-introduced-to-remove-trust-deficit-between-builders-homebuyers-pm-modi-11607346808812.html

Homebuyers have been subjected to excessive delays under the justice delivery system because construction projects have long gestation periods. From a mere contractual dispute to instances of fraud and delays in handing over the property, homebuyers face a lot of challenges. So remedies under one particular legislation may not be sufficient to cover all the offences and problems. Consequently, there is a need to give expansive remedies to them under different Acts.

In case of any dispute, they can now approach three possible forums under three different Acts: The Consumer Protection Act, 2019, as a consumer; Real Estate (Regulation and Development) Act, 2016 (RERA Act) as an allottee; and Insolvency and Bankruptcy Code, 2016, as a financial creditor.

The new Consumer Protection Act, 2019, has been a relief in more ways than one and has wide-ranging provisions with respect to both defining the offence under the Act and dispute resolution. It is also not specific to resolution like the Insolvency Code. Therefore, it is important to understand that the remedies should be simultaneous and not mutually exclusive.

The fact that the RERA Act contains a ‘bar of jurisdiction’ clause has not stopped the courts from providing the homebuyers with simultaneous remedy under the Consumer Protection Act for issues that go beyond the RERA Act. This has been for various reasons. The Punjab and Haryana HC has held in two judgments—Experion Developers Pvt. Ltd. v. State of Haryana and Ors., and Janta Land Promoters Private Limited v. Union of India and Ors—that remedies under RERA are in addition to and not in derogation of the other laws in force, taking recourse to Section 88 of the Real Estate Act.

It has held that the appropriate forum may be approached under the Consumer Protection Act in case of remedies that may not be available under RERA. This has been furthered by a recent Supreme Court judgment on the same issue in the case of M/S Imperial Structures Ltd v. Anil Patni. In the said case, the project had not been completed even after substantial booking amounts had been paid by the allottees. In 2017, the National Consumer Disputes Redressal Commission (NCDRC) was approached under the Consumer Protection Act 1986 (now amended to Consumer Protection Act, 2019); it ordered refund of the amount paid with 9% interest per annum and costs to the tune of Rs 50,000.

The NCDRC also dismissed the claim of the builder that it had no jurisdiction to adjudicate on that particular issue as the project was approved by RERA and therefore, the Regulatory Authority under the Real Estate Act was the appropriate forum. Consequently, an appeal was filed by the builder in the Supreme Court. The Division Bench at the apex court held that there was no bar in approaching the NCDRC under the provisions of RERA. This was because of two distinct reasons.

First, the court relied on its decision in Malay Kumar Ganguli v. Dr Sukumar Mukherjee, where it has been held that the NCDRC is not to be treated as a civil court as defined under the Civil Procedure Code; and Section 79 of RERA, which deals with bar on jurisdiction of other courts, will thus not cover the NCDRC. Second, that Section 71 deals with the authority’s power to adjudicate and the proviso to Section 71(1) states that the complainant under RERA may withdraw a complaint that is pending before any of the Consumer Disputes Redressal Commissions after taking permission from such forum or authority and then file a complaint under the Real Estate Act.

This clearly indicates at a legislative intent of giving an option to the complainant to either proceed simultaneously or in any of the forums distinctly, rather than mandatory withdrawal of a complaint under the Consumer Protection Act to file a complaint under RERA. These judgments are a much-needed respite to homebuyers as the remedies under the specialised Acts are very selective and may also limit the cause of action. The three reasons given above can offer an opportunity to the homebuyers to make complaints under the preferred Act or expand their rights by making simultaneous complaints in order to get exhaustive remedies.

However, while these are protective legislations, the courts shall endeavour to prevent any overlaps if the homebuyers choose to pursue simultaneous remedies. For instance, Section 12 of RERA penalises the promoter for misleading advertisements in the context of layout, plan or model of the building. Such penal consequences for misleading advertisements are also available under the Consumer Protection Act under Sections 2(28) and 10(1) more generally, which relate to any aspect of the false and misleading advertisement. Therefore, the compensation awarded will have to prevent any overlaps in these areas; otherwise, it will lead to unjust enrichment of the complainant, which is not the purpose of these Acts.

Source: https://www.newindianexpress.com/opinions/2020/nov/27/simultaneous-proceedings-a-relief-for-homebuyers-2228667.html

The Builders’ Association of India (BAI) on the Supreme Court’s recent judgement allowing homebuyer for compensation uphelding the consumer court’s order stated that Real Estate Regulatory Authority (RERA) is formed only to resolve real estate related matters. Anand Gupta, Chairperson of housing and RERA committee of BAI said, “RERA has been doing a great job. The RERA act was approved by the Parliament of India in 2016 and from 2017 it was implemented. After 70 years, such authority was formed where builders and homebuyers can seek justice.” RERA was established to expeditiously hear the real estate matters unlike other civil courts that listen to several other matters, he asserted.

Meanwhile, he also stated, “Of course, homebuyers will have an option to approach the various courts of law and with this judgment, now it is clear that consumer court can also pronounce on real estate projects where the possession has been delayed or homebuyer seeking a refund. Though the platform was open earlier too but this judgement now specifically cites that homebuyers can reach consumer forums with their complaints.

Instead of doing so, the SC in its judgement could have directed the parties to approach RERA and if not satisfied then further to appellate tribunal, HC among others, Gupta explained.

The matter is about a Housing Scheme “The ESFERA” in, Gurgaon, launched by the builder (Appellant) sometime in 2011, and all the original complainants — Anil Patni and others booked their respective apartments by paying the booking amounts and thereafter each of them executed Builder Buyer Agreement.

However, even after four years, there were no signs of the project getting completed. In the circumstances, the homebuyer approached the consumer commission that ordered the builder to pay Rs 50,000 as compensation. However, the builder approached SC wherein, it upheld the order to be paid by the appellant in respect of each of the consumer cases, over and above the amounts directed to be made over to the complainants and shall form part of the amount payable by the appellant to the complainants.

Source: https://www.freepressjournal.in/mumbai/builders-association-of-india-chairman-says-rera-is-a-dedicated-authority

Several developers in the National Capital Region have requested the Real Estate Regulatory Authority (RERA) of UP, Haryana and Delhi to delay recovery notices issued to builders by at least six months, in light of the Covid-19 crisis that has crippled the sector.

These builders were ordered before the clamping of the lockdown to pay compensation to homebuyers for project delays.

“We have requested that no adverse order of refund or recovery be issued for a minimum period of six months. Cash flows of our industry are badly impacted in the present scenario and no customer is able to pay the due instalments,” said RK Arora, the president of the Uttar Pradesh chapter of the National Real Estate Development Council.

The Maharashtra Real Estate Regulatory Authority had extended the validity of registration of projects by three months, effectively pushing back the deadline to complete the projects.

However, developers in the NCR are not keen for such an extension, and have instead sought relief in delaying payment of compensation to homebuyers and more time to file quarterly update on projects.

With mass exodus of labourers, developers fear mobilising construction workers to resume work would bea major challenge.

“It is impossible for the promoters to comply with the penalty orders. Considering the situation wherein the financial markets have collapsed, it will take a long time to get the required funds. Hence penalty should be reviewed and orders be set aside,” Arora told ET.

UP-RERA chairperson Rajiv Kumar told ET that it had held initial talks with developers and a final decision on what relief to offer would be taken soon.

“Expert opinion is that the Covid-19 impact will be long-lasting and will redefine the marketplace for the near future. We have requested to declare this lockdown as force majeure and extend the project completion period by a minimum 9-12 months. This is because once the lockdown is lifted, which is yet uncertain, it will take a minimum six months for us to remobilise the finances and labourers who in most of the cases have migrated to the hometowns,” said Gaurav Gupta, the president of the Confederation of Real Estate Developers Association of India, NCR-Ghaziabad, which has analysed the impact on business for the next year.

Gupta said receipts from sales already completed was almost zero since March 20 and that this trend was expected to continue as a state of fear was prevalent and people were focussing on day-to-day needs.

Experts said much of the direct impact had been caused by the liquidity crunch the sector had been facing for the last couple of years and that the lockdown had exacerbated it. “The supply chain for necessary raw materials for construction activity, like cement and steel, simply does not exist anymore. This has, therefore, had a cascading effect on daily wagers whose principal source of employment comes from the real estate sector. Therefore, a delay in delivery of ongoing projects, both housing and commercial, is expected and timelines provided to RERA will change,” Athena Legal partner Simranjeet Singh said.

Source: https://economictimes.indiatimes.com/wealth/real-estate/set-aside-penalty-orders-developers-to-rera/articleshow/75042282.cms

The Confederation of Real Estate Developers’ Association of India (CREDAI) has launched an app to facilitate home buyers in buying property through credible developers. The app will help buyers to identify their preferred projects and contact developers directly.

The app was launched by Minister of Transport, Housing and Environment, Forest, Law of Chattisgarh, Mohammad Akbar along with Chattisgarh RERA Chief Vivek Dhand.

Minister of State for Housing and Urban Affairs, Hardeep Singh Puri, during the ‘’First National RERA Conclave’’ held on November 4, 2019 in Lucknow had asked the developers to launch a credible e-commercial platform to bring back the trust of buyers in the sector. The National Real Estate Development Council (Naredco) has earlier launched an similar app.

Awaas App by CREDaI is an exclusive platform for its members, which will showcase projects from 220 cities and will have participation from 20000 CREDAI developers nationwide.

“The realty sector has evolved to become more regulated and proficient with the adoption of technology. The launch of AWAAS App by CREDAI is one of many such initiatives to bring transparency and improve trust between developers and home buyers by harnessing the power of technology,” said Jaxay Shah, CREDAI Chairman.

“The app will aid developers in selling their finished projects faster and improve home buyer’s sentiment at large,” he added.

“Since the real estate sector has evolved, the mobile app will help increase transparency in the sector and improve trust between developers and home buyers. The platform would also enable buyers across India and abroad to identify their preferred projects and developers without any ambiguity in the process,” said Satish Magar, CREDAI president.

Source: https://economictimes.indiatimes.com/industry/services/property-/-cstruction/real-estate-body-launched-app-to-facilitate-homebuyers/articleshow/74149778.cms

Mr Amrit Abhijat, Joint Secretary & Mission Director (HFA), Ministry of Housing and Urban Affairs, Government of India said that the Pradhan Mantri Awas Yojana (Urban) has sanctioned more than one crore houses since inception. Speaking at the 13th Edition Annual Real Estate Summit 2020, organised by FICCI on the theme – Ushering Indian Real Estate to Growth Trajectory, Mr Abhijat said that PMAY(U) is one of the flagship programs of the government and it is aimed at providing ‘Housing for All’ by 2022, when the nation completes its 75 years of Independence.

“The PMAY(U) mission has achieved a remarkable milestone by sanctioning more than one crore houses in a span of about 4 years,” he said. Mr Abhijat gave a snapshot of the real estate sector and affordable housing, and how they contributed to the GDP of the country. He also highlighted key initiatives of the government in the sector to support the private players. He released FICCI-ICRA Report on Affordable Housing during the event.

Mr KK Khandelwal, Chairman, Haryana Real Estate Regulatory Authority, Government of Haryana, said that the Real Estate (Regulation and Development) Act, 2016 (RERA) has brought back the confidence of the buyers in the market and this trust will gradually strengthen. Flagging the issue of multiple regulators in real estate sector, Mr Khandelwal said that the industry has to somehow pressurise the government for having a single regulator as multiplicity of forums is creating problems and neither the buyers nor the promoters are happy with the situation.

“There has to be a single regulator or if one complete code cannot be evolved for the sector then at least for one kind of problem there should be only one forum. At times, a case is going on at all three places – RERA, NCDRC and NCLT,” he noted. Mr Khandelwal released FICCI-Colliers Report on Emerging Trends in Real Estate – Technology and New Assets Classes during the opening session.

Source: https://www.business-standard.com/article/news-cm/pmay-u-mission-achieves-remarkable-milestone-by-sanctioning-more-than-one-crore-houses-in-about-4-years-120012700232_1.html

Across the nation, the speed of implementation and extent to which RERA has noticeably impacted real estate varies, but the positivity it brings in is not in doubt.

For an industry that provides a basic need of shelter, regulation has come as a value-add. After years of differences in opinion as regards norms, terms and conditions, the Real Estate (Regulation and Development) Act (RERA), 2016, created a broad set of guidelines which brought in transparency in real estate transactions as also defined responsibilities of stakeholders in general and real estate developers in particular.

Across the nation, the speed of implementation and extent to which RERA has noticeably impacted real estate varies, but the positivity it brings in is not in doubt. There is need for an equal implementation across the nation with minor tweaks and changes to make what is accepted as ‘good’ to evolve into ‘better’ – and even, ‘best’.

RERA’s prime focus at the time of introduction as being ensuring protection of consumers’ interests, by bringing in policies that defined the extent as also apportioned responsibility on the part of real estate developers. Leveraging information technology, RERA enabled access to sanctioned plans as also details of different stages of construction. For customers, RERA has brought in an era of transparency through proper disclosure and financial discipline.

At the time it was introduced, this path-breaking regulatory regime provided for tribunals and ombudsman for redressing disputes. RERA also provided real estate developers with protection from defaulting buyers and ensured what we could refer to as an element of fair play.

In Maharashtra, easily the poster-boy of successful implementation of RERA across the nation, there has been an additional layer added to the process in the form of a redressal forum, which seeks to provide an option prior to actually filing a dispute before MahaRERA. This has proven to be a success, with a success rate of over 60 per cent.

This is the biggest take-away from the two-and-a-half years of RERA implantation across the nation. The regulatory aspect can be strengthened with redressal prior to taking up due process under the regulatory regime. In terms of different states having different set of market functioning – leading to different levels of implementation across states – needs to be streamlined into a single, functional regulatory regime that helps the industry grow in an environment of transparency and accountability on the part of stakeholders.

Projects which are in existence prior to implementation of RERA need to be assimilated within the system, or a parallel system which ensures that all real estate projects are brought under regulatory regime. Similarly, in some states where implementation is not at the level it should be, we see new real estate projects slipping through the regulatory net. It is similar to the challenge of GST and real estate: uniform implementation across different states is needed. Going into the future, RERA needs to address the issue of lack of uniformity in laws and capabilities of different state’s RERA authorities.

In some states, we see that for projects under construction, data is being collected – but not being analysed or shared with all stakeholders. Information technology needs to be leveraged, so that data is analysed; numbers are crunched – and the results are acted upon in the form of guidelines or new norms as would increase the positive effect of RERA.

We also have a situation in some states where implementation is not at the levels we would have expected. The problem here is the lack of informative and user-friendly on-line access for home buyers. So, we see in some states that periodic updates on part of the developers and also about some on-going projects are not available online.

Ideally, the huge quantum of data already collected by regulatory authorities across states should be analyzed efficiently and made available in simple to understand formats to stakeholders – especially home buyers – so that they are well informed and updated about the general scenario in their state’s real estate. The aspect of ‘information’ and of it reaching those for whom the regulatory regime sought to make these available is something that needs to be expedited in such states.

To sum up, the journey so far under the RERA regime has been good, but we need to tweak it to ensure it evolves through ‘better’ to ‘best’.

Source: https://www.financialexpress.com/money/rera-a-game-changing-regulation-marred-by-patchy-implementation/1825108/