Kanupriya a 5th-year Law Student specializing in Corporate Law at the School of law, Lovely Professional University has written this blog explaining “RERA – It’s Implementation & It’s Impact on Various States”
INTRODUCTION
Real Estate (Regulation and Development) Act, commonly known as RERA, was implemented on May 1, 2016, to bring transparency, accountability and efficiency in the Indian real estate sector. The act was brought into effect to safeguard the interests of homebuyers and promote fair practices in the real estate industry. In this blog, we will discuss the implementation and impact of RERA on various states in India.
RERA IMPLEMENTATION
RERA was implemented with the aim of creating a more structured and organized real estate sector. This Act implemented measures to enforce builder accountability and provide buyers with reliable and transparent information.
The regulatory authority mandates the registration of all real estate projects that are over 500 square meters in size or have more than eight apartments. The builder must adhere to all the rules and regulations laid down by the act, and the regulatory authority is responsible for ensuring that the project is completed within the stipulated time frame.
IMPACT OF RERA ON STATES
Since the implementation of RERA, the Indian real estate sector has undergone significant changes. The act has had a positive impact on the sector, and has helped in improving transparency, accountability, and efficiency in the industry. Here’s a look at the impact of RERA on some of the states in India:
MAHARASHTRA:
Maharashtra was one of the first states to implement the RERA Act. The state government established the Maharashtra Real Estate Regulatory Authority (MahaRERA) on 1st May 2017. The implementation of RERA in Maharashtra has been a game-changer for the real estate sector in the state. It has brought about a significant change in the way developers operate, and it has given homebuyers the much-needed confidence to invest in real estate.
The implementation of RERA in Maharashtra has led to the timely completion of real estate projects. Developers are now required to register their projects with MahaRERA and provide regular updates on the progress of the project. This has helped in ensuring that projects are completed on time, and homebuyers do not face any delays.
KARNATAKA:
Karnataka established the Karnataka Real Estate Regulatory Authority (K-RERA) to enforce the act. The state government has made it mandatory for builders to display all the project details, including the approvals and status, on the K-RERA website. The authority has received over 7,000 complaints and has resolved more than 75% of them.
GUJARAT:
The Gujarat Real Estate Regulatory Authority (GUJRERA) was established in 2017 to enforce RERA. The authority has taken several steps to ensure compliance with the act, such as mandating that builders register all projects under construction, and imposing penalties on builders who fail to comply with the act. GUJRERA has received over 4,500 complaints and has resolved more than 85% of them.
UTTAR PRADESH:
Uttar Pradesh established the Uttar Pradesh Real Estate Regulatory Authority (UPRERA) to enforce RERA. The authority has taken several steps to address complaints related to delayed possession and unfair practices by builders. The authority has received over 10,000 complaints and has resolved more than 70% of them.
CONCLUSION
RERA has brought significant changes to the Indian real estate sector. The act has helped in improving transparency, accountability, and efficiency in the industry. Despite the long road ahead, RERA’s implementation has instilled hope in homebuyers and stimulated investment in the real estate sector. The impact of RERA has been positive, and it is expected to bring more changes in the future. The act has helped in increasing transparency in the sector by mandating that developers disclose all project-related information, including project plans, land status, and financial details, among others. This has given homebuyers the confidence to invest in real estate projects and also increased their trust in developers.
Additionally
RERA enforces timely project delivery by penalizing delays and restricting the utilization of funds collected from homebuyers to the designated project. The act has also made it mandatory for developers to register their projects with the state RERA authorities, which has helped weed out fraudulent developers and fly-by-night operators from the sector.
However, the implementation of RERA has been slow and uneven across states. Some states have implemented RERA effectively, while others haven’t, leading to developers’ low compliance. This has led to confusion among developers and homebuyers, resulting in a slower than expected impact on the sector.
RERA has transformed the Indian real estate sector, introducing essential transparency and accountability. Nevertheless, the impact of RERA on different states has been uneven, as some states have implemented it more efficiently than others. Collaboration between states and the central government is necessary for uniform implementation of the act and to ensure its benefits reach all stakeholders in the sector.
For detailed atricle on “First Time Home Buyers: What to Know” – Click here
REFERENCES
- https://blog.ipleaders.in/real-estate-regulation-and-development-act-2016-2/
- https://www.squareyards.com/blog/brief-description-about-rera-its-impact
- https://www.legalserviceindia.com/legal/article-4003-rera-a-boon-or-bane-for-real-estate-sector.html
- https://vakilsearch.com/blog/the-impact-of-rera-on-real-estate/#:~:text=The%20RERA%20has%20impacted%20the,boost%20investments%20in%20this%20sector.
- https://ijpiel.com/index.php/2022/01/03/4488/
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