Real Estate Regulatory Authorities Resolve Record Number of Consumer Cases
As of July 1, 2024, the Real Estate Regulatory Authorities (RERA) of various states and Union Territories (UTs) in India have resolved an impressive 1,24,947 consumer cases, according to the Economic Survey 2023-24. RERA aims to enhance transparency, financial discipline, and accountability in India’s real estate sector, and this significant number of resolved cases reflects its effectiveness in achieving these goals.
All States and UTs, Except Nagaland, Implement RERA Regulations
The Economic Survey also revealed that, with the exception of Nagaland, all other states and UTs across India have successfully implemented regulations under the Real Estate Regulation and Development Act of 2016. While Nagaland is currently working to finalize its regulations, this development showcases the nationwide commitment to bringing transparency to the real estate industry.
High Number of Registered Real Estate Projects and Agents
Impressively, the number of registered real estate projects and agents under RERA as of July 1, 2024, stood at more than 1,30,186 and 88,461, respectively. This indicates widespread compliance and participation in the regulatory framework established by RERA in order to prioritize consumer interests.
RERA’s Impact on India’s Real Estate Transparency Rank
The Real Estate Regulation and Development Act has been instrumental in boosting India’s position in the Global Real Estate Transparency Index. Following the enactment of RERA, India was ranked 36th in the Index in 2022. This demonstrates international recognition of the Act’s positive impact on enhancing transparency and accountability within the real estate sector.
Key Provisions of the Real Estate Regulation and Development Act
The Act introduces several key provisions that ensure the protection of homebuyer rights and push for more responsible practices in the construction and real estate industries. Among these provisions are:
1. Fast-Track Dispute Resolution Mechanism: The implementation of a fast-track dispute resolution mechanism allows for the timely resolution of conflicts, ensuring that consumer grievances are addressed quickly and efficiently.
2. Agreement to Sale: A crucial requirement under RERA is to establish an ‘Agreement to Sale’ at the time of registration. This helps provide a clear contractual framework and documentation for the transaction, benefiting both buyers and developers.
3. Allottees’ Consent for Project Changes: Any changes in the project layout must receive two-thirds consent from allottees or homebuyers. This provision prevents arbitrary alterations and safeguards the interests of consumers.
4. Compensation, Refunds, and Penalties: RERA specifies provisions for compensation, refunds, and penalties for breaches of obligations by developers. This ensures that developers are held accountable for delays or shortcomings in delivering promised projects.
5. Fund Allocation and Project Disclosure: Developers are required to allocate 70% of the funds collected from homebuyers into a dedicated bank account, specifically for land costs and project construction. A crucial aspect of transparency, RERA also mandates developers to disclose essential project details, including launch date, permissions obtained, project specifications, expected delivery date, and amenities.
Considering the growth witnessed in the resolution of consumer cases, the successful implementation of regulations across states and UTs, and the positive impact of RERA on India’s real estate transparency rank, it is evident that the Act has been instrumental in transforming the real estate sector for the better. Looking ahead, the continued compliance and reinforcement of RERA’s provisions will further empower homebuyers and strengthen the long-term sustainability of the real estate industry.
