RERA, 2016: 2 Years Down the Lane

It’s been 2 years since the RERA (Regulation & Development) act came into existence to root out the involvement of Black Money in the property buying process. RERA is an act of parliament and accounts for transparent flow of money in the system. It protects the rights of home buyers and strengthens the investment policies in the real estate industry. Residential and Commercial projects with a land area above 500 sq meters or more than 8 apartments need registration with RERA for launching new projects. 70% of the money involved in any project should be deposited in the banks through cheques is mandatory under the act. The prime objective of RERA is to protect the interests of home buyers and covers all the developers and stakeholders across the country.

Current Scenario

After 2 years of its implementation, this act is gaining momentum in the country with 22 states and 6 union territories have released their notifications about RERA rules and regulations. 19 states have initiated online portals for the same. The North Eastern states which jumped over it initially, are now officially releasing their RERA notifications soon. There is a considerable rise in the registrations of projects and agents since November 2018. Maharashtra state comes out as the top performer with RERA, it has recorded 5000 complaints and over 3100 orders were passed. Maha RERA has registered more than 20,718 projects under the act. Gujarat also performs well under RERA with more than 5,317 registered projects. The system is getting more transparent with these reforms. Violation of RERA is not easy and defaulters cannot simply get away with it. Consumers are inclining towards RERA for registering complains and the numbers are increasing. It is evident that through these reforms the Real Estate Industry is getting into a good shape.   

Eldeco MD Pankaj Bajaj says, ‘The RERA reform poses great opportunities for the real estate sector especially for the buyers but there are some areas which lack clarity like developer’s responsibility in the case of any malpractice. Still, the act needs some changes from the developer end for an impactful functioning of the overall system.’  

(data based on the research by Anarock)

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