The Real Estate (Regulation and Development) Act, 2016 (RERA) renders a strict regulation to organize the real estate sector of the Indian economy. The Act has cropped up with the repeated and voluminous complaints of the property buyers against the dubiousness of the promoters and realtors. This Act is being considered as the single-most consumer-centric law for Indian property buyers and realty investors. The Act will bring in a significant change in real estate business practice in India. With the successful implementation throughout the country, the Act will remove a lot of risks involved in the property investment.
Despite, so much gumption from the Centre, states have left no stones unturned in curbing the key provisions of the central Act in order to safeguard most of the ongoing projects from RERA purview, thereby detracting the importance and the purpose of the Act. There are some states that haven’t notified their rules yet.
Under this Act, the developers need to mandatorily register their on-going projects with the state regulator much before than the project promotion and launch. This registration process requires particulars of the builders, project details such as- layout plans, development status, and tentative time of completion, land status and standing legal approvals. The developer can bring a sudden change in development works or planning unless he gets the consent of two-thirds of the existing buyers. The projects with delayed possession will face a stiff fine under the Act and in the worst scenario the tribunal can give a verdict of three-year imprisonment. Also, developers are asked to maintain an escrow account with 70% mount received from the buyers and this amount can be used for the existing project development. The tribunals will be the ultimate grievance redressal forum of the homebuyers.
RERA clearly states that the developers are clearly accountable for meeting the obligations of the project delivery in a scheduled time frame and also they are answerable for the quality of the construction. Since real estate is state subject; state governments should act as the implementing units for the legislation. Thus, the effectiveness of the Act is partial without the complete execution of the Act.
Since real estate brokers play an effective part in any real estate deal; RERA mandates brokers’ registration with the state RERA authority as well. Not only will the real estate stakeholders, even local civic bodies also be under the radar of RERA, so that developers’ can have timely approval for their respective projects. The states those have notified their respective RERA regulations either have tweaked the pivotal provisions of the central Act or submitted the norms without forming a Regulatory Authority (RA). Such states are asked to re-notify their regulations in a proper manner as described in the Act.
-Somani Realtors News Network- If you have real estate requirement in Kolkata, drop your queries and needs under post your property requirement of Kolkata. Avail exact solution with maximum alternatives in no time. We are the leading realtors’ brand in eastern India with 25 years+ realty market experience. Buy/Sell/Rent real estate units online.