Real Estate Complaints Resolved: RERA Impact on India's Market

New Delhi, Jul 22 (PTI) Real estate regulators in states and Union Territories have so far disposed of nearly 1.25 lakh consumer complaints against developers, according to the Economic Survey 2023-24.

The Real Estate (Regulation & Development) Act, 2016, popularly known as RERA, was enacted to bring about much-needed reform in India's real estate sector. The main objective of RERA is to encourage greater transparency, citizen-centricity, accountability, and financial discipline, thus empowering home buyers and boosting the economy.

The survey highlighted that all states/ Union Territories (UTs) have notified rules under RERA except Nagaland, which is in the process of notifying the rules.

As of July 1, 2024, over 1,30,186 real estate projects and 88,461 real estate agents have been registered under RERA.

"RERA provides for the establishment of a fast-track dispute resolution mechanism for the settlement of disputes. As of 01 July 2024, 32 states and UTs have set up the Real Estate Regulatory Authority, and 1,24,947 complaints have already been disposed of," the survey informed.

RERA mandates an 'Agreement to Sale' at the time of registration and requires two-thirds consent from allottees/homebuyers for any layout changes. The law also specifies provisions for refund, compensation, and penalties applicable to all stakeholders in cases of obligation contraventions.

"Before RERA was enacted, there were many cases of builders not delivering flats or homes despite full payments from homebuyers. To address this, under RERA, it is mandated that 70 per cent of funds collected from homebuyers for a project must be maintained in a separate bank account dedicated to project construction and land costs," the survey said.

RERA has also made it mandatory for developers and project promoters to make all necessary disclosures about projects, including permissions secured from authorities, date of launch, promised date of delivery, project specifications, and amenities.

Further, homebuyers' interests are protected as only the projects (above 500 square metres and above eight apartments) registered with RERA can be launched, thereby obviating the possibility of any misrepresentation or false promises by the developers, the survey said.