What is RERA?
The Real Estate (Regulation and Development) Act, 2016 (No. 16 of 2016), or RERA, was established to regulate and promote the real estate sector in India. Its stated objective is to ensure the efficient and transparent sale of real estate projects, including plots, apartments, and buildings, while protecting the interests of consumers. RERA aims to achieve this by establishing:
- a Real Estate Regulatory Authority
- an adjudicating mechanism for speedy dispute redressal
- an Appellate Tribunal to address appeals from the decisions of both the Regulatory Authority and the adjudicating officer
Key Provisions of RERA
RERA mandates that all real estate projects, with certain exceptions, be registered with the Real Estate Regulatory Authority. This registration requirement applies to projects within planned areas, as defined by the Act. Developers, referred to as “promoters” under RERA, are obligated to disclose comprehensive project details to both the Authority and potential buyers. This includes information such as:
- project plans and specifications
- a schedule of completion
- details of approvals obtained from competent authorities
Establishment and Enforcement of RERA
While the Act was enacted on March 25, 2016, it came into force on May 1, 2016. Different provisions of the Act were enforced on different dates, with the remaining sections coming into effect on May 1, 2017. RERA applies to the entirety of India, except for the state of Jammu and Kashmir. The Act empowers the Regulatory Authority to impose penalties on promoters, allottees (buyers), and real estate agents for non-compliance. These penalties can be both financial and, in certain cases, may involve imprisonment.
RERA represents a significant step towards bringing transparency and accountability to the real estate sector in India. It aims to protect the interests of homebuyers by ensuring that projects are completed on time and as promised, while also promoting the overall growth and development of the sector.