The Economic Survey 2023-24 highlights that RERA has resolved nearly 1.25 lakh consumer complaints and registered 1.3 lakh real estate projects since its enactment in 2016. Designed to reform India's real estate sector, RERA aims to enhance transparency, accountability, and financial discipline, thereby protecting homebuyers and boosting market confidence. Key achievements include the establishment of fast-track dispute resolution mechanisms and mandatory project registrations. With comprehensive rules notified in all states and Union Territories except Nagaland, RERA has significantly improved consumer protection, ensuring developers meet their obligations and fostering a more transparent, accountable, and efficient real estate environment.
To consumer confidence, the Real Estate (Regulation & Development) Act, 2016 (RERA) has resolved nearly 1.25 lakh consumer complaints against developers, according to the Economic Survey 2023-24. Enacted to reform India's real estate sector, RERA aims to enhance transparency, accountability, and financial discipline, thereby empowering homebuyers and bolstering the economy.
Before RERA, the real estate sector was plagued with issues like project delays, lack of transparency, and mismanagement of funds. Homebuyers often found themselves at the mercy of builders who failed to deliver homes on time despite receiving full payments. RERA was introduced to tackle these problems head-on.
RERA's key objectives are to ensure transparency, accountability, and financial discipline in the real estate sector. Transparency is achieved by mandating that developers provide comprehensive details about their projects, including necessary permissions, project timelines, specifications, and amenities. Accountability is enforced by holding developers to their commitments, ensuring they adhere to promised delivery dates and project specifications. Financial discipline is maintained by requiring that 70% of the funds collected from homebuyers be kept in a separate bank account, which can only be used for construction and land costs, preventing misuse of funds.
To protect consumers, RERA has established a fast-track dispute resolution mechanism that addresses complaints from homebuyers promptly and effectively. The act also regulates projects by requiring registration for those larger than 500 square meters or with more than eight apartments, reducing the risk of misrepresentation or false promises by developers.
Since its implementation, RERA has made substantial progress. Over 1,30,186 real estate projects and 88,461 real estate agents have been registered under the act. Furthermore, nearly 1.25 lakh consumer complaints have been resolved, showcasing the effectiveness of the dispute resolution mechanism. All states and Union Territories, except Nagaland, have notified RERA rules, with 32 states and UTs having established Real Estate Regulatory Authorities.
RERA includes several provisions to protect homebuyers further. An Agreement to Sale is mandatory at the time of project registration, ensuring that all parties are aware of and agree to the project terms. Developers must obtain the consent of two-thirds of allottees/homebuyers for any changes to the project layout. Additionally, the law specifies conditions for refunds, compensation, and penalties if developers fail to meet their obligations.
RERA has significantly reformed India's real estate sector, bringing in much-needed transparency, accountability, and financial discipline. By protecting the interests of homebuyers and ensuring developers adhere to their commitments, RERA has boosted confidence in the real estate market and contributed to the sector's growth.
As the real estate sector continues to evolve, RERA's role remains crucial in ensuring a fair and transparent environment for all stakeholders. With continued compliance and enforcement, the act promises to safeguard the interests of homebuyers and drive the sector towards greater accountability and growth.
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