RERA: The real game changer

//RERA: The real game changer

RERA: The real game changer

The four-letter abbreviation ‘RERA’ has completely changed the way the real estate sector used to function in India. Here’s how this strong Act introduced much-needed transparency and ensured the protection of all stakeholders involved in property deals…

The real estate sector plays the role of a catalyst in fulfilling the demand for housing and infrastructure development in the country. Though this sector has grown significantly in recent years, it has been largely unregulated and devoid of any universal standards and rules which led to a lot of problems and noncompliances. In view of the above, it became necessary to have a strong legislation which addressed these issues. That’s how the Real Estate (Regulation & Development) Act, 2016, came into effect to ensure protection of the interests of the parties involved, coupled with uniformity and standardisation of business practices in this sector.

Notification No. SO 1544(E) {F.No. 0-17034/18/2009-H} dated 26.04.2016 provides the 1st day of May, 2016 as the date on which the provisions of the Act shall come into force. The main objectives of this Act are as under:

  • To establish the Real Estate Regulatory Authority for the regulation and promotion of the real estate sector.
  • To ensure the sale of plots, apartments and real estate projects in an efficient and transparent manner.
  • To protect the interests of consumers in the real estate sector.
  • To establish an adjudicating mechanism for the speedy redressal of disputes.
  • To establish the Appellate Tribunal to hear appeals from the decisions, directions or orders of the Real Estate Regulatory Authority and the adjudicating officer.
  • To address matters connected therewith or incidental thereto.

The main intention of this Act is to ensure:

  • Transparency in all the dealings in this sector
  •  Timely completion of projects
  • Curb black money and Benami transactions
  • Avoid exploitation of any party through standardized documentation
  • Fast-track dispute resolution mechanism
  • Provision of equal rate of interest to be paid by promoters and buyers, in case of defaults
  • Credibility to the sector by eliminating ‘fly-by-night’ operators
  • Channelize investments into this sector
By | 2019-07-08T07:48:13+00:00 July 8th, 2019|Categories: Uncategorized|0 Comments

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