Why in news?
The 3rd anniversary celebrations of RERA, through webinar, was held on 16th May 2020.
Views of Minister of Housing and Urban Affairs
- One of the principal objectives of RERA is to help restore the trust between a buyer and the seller and this trust can only be restored by the true and effective implementation of RERA.
- Effective implementation of RERA would not only help ease the burden of inventory pile-up in the sector, but also provide the necessary financial cushion to the developers to complete pending projects.
- Before RERA came into existence, Indian Real Estate sector was largely unregulated till 2016.
- With the enactment of Real Estate (Regulation and Development) Act, 2016 (RERA), the country got its first real estate regulator.
- The core objective of this transformative legislation is to ensure regulation and promotion of real estate sector in an efficient and transparent manner and to protect the interest of the home buyers.
- Affordable Rental Housing Complex (ARHC) scheme – Government funded houses in cities will be converted into Affordable Rental Housing Complex under PPP model.
Real Estate Regulatory Authority (RERA)
- Real Estate Regulatory Authority (RERA) is a Statutory Body established in each state by the Real Estate (Regulation and Development) Act, 2016, which came into effect fully from 1st May, 2017.
- The Act seeks to protect home-buyers as well as help boost investments in the real estate sector by bringing efficiency and transparency in the sale/purchase of real estate.
- The Act requires any project that has 8 dwelling units or is at least 500 sq m in area to be registered with the RERA. (Only the Projects coming up after the act was passed are covered).
- RERA is established in each state for regulation of the real estate sector and also acts as an adjudicating body for speedy dispute resolution.
The Mandatory Functions of RERA are:
- Registering and maintaining a database of real estate projects
- Publishing the database on its website for public viewing
- Protection of interest of promoters, buyers and real estate agents
- Development of sustainable and affordable housing
- Render advice to the government and ensure compliance with its Regulations and the Act.
Decisions of RERAs can be appealed in Real Estate Appellate Tribunal.
Why was the Real Estate (Regulation and Development) Act Needed?
- Until RERA Real estate sector had been largely unregulated and there was no standardization of business practices and transactions.
- Issues like delay in delivery of flats, pricing issues, quality of construction problems were prevalent.
- Cases where developers cheated property buyers were rampant and there was No grievance redressal mechanism.
- There was also the issue of generation of black money in real estate sector.