Homebuyers Forum Claims RERA Act Falls Short of Objectives, Urges Consumer Affairs Ministry for Action
A forum representing homebuyers in Maharashtra claims that the Real Estate (Regulation and Development) Act, 2016, has failed to meet its objectives. The forum is now urging the Union Consumer Affairs Ministry to issue specific guidelines to protect consu
Rera ActHomebuyersConsumer ForumsReal EstateConsumer Affairs MinistryReal Estate MumbaiOct 21, 2024
In a letter addressed to Consumer Affairs Secretary Nidhi Khare, the FPCE highlighted that as of July 31, around 50,000 complaints related to the real estate sector were pending with consumer forums. This statistic, which was part of the government's response to the Lok Sabha on August 7, underscores the forum’s concern that RERA has not been effective.
The FPCE emphasized that although RERA was designed to regulate the real estate sector, it has not met its desired objectives in the seven years since it became fully operational. The forum noted that many consumers are still approaching consumer forums instead of RERA for the resolution of their complaints. This trend suggests a lack of trust in RERA’s ability to provide timely and effective redressal.
An official from the FPCE stated, “It is crucial for the Consumer Affairs Ministry to protect the interests of consumers, especially in the real estate sector. The stakes are much higher here, as life savings are often at risk, which is more significant than in any other sector.”
The official also pointed out that while Section 71 of the RERA Act allows consumers to withdraw pending complaints from consumer forums and approach RERA, many consumers have chosen not to do so. “This is a clear indication that RERA has not been able to meet its objectives. It is high time the Consumer Affairs Ministry intervenes and issues sector-specific guidelines to protect the interests of real estate consumers,” the official added.
The FPCE’s concern is further validated by the prevalence of malpractices in the real estate sector, which are in blatant violation of the Consumer Protection Act, 2019. The forum believes that the Consumer Affairs Ministry’s intervention is crucial to address these issues and restore consumer confidence in the regulatory framework.
The Consumer Affairs Ministry plays a vital role in safeguarding the interests of consumers across various sectors. The ministry’s efforts to issue specific guidelines for the real estate sector could go a long way in ensuring that RERA fulfills its mandate and provides the necessary protection to homebuyers.
Frequently Asked Questions
What is the RERA Act?
The Real Estate (Regulation and Development) Act, 2016 (RERA) is a law in India designed to regulate the real estate sector and protect the interests of homebuyers. It aims to ensure transparency, accountability, and timely completion of real estate projects.
Why is the Forum for People’s Collective Efforts (FPCE) concerned about RERA?
The FPCE is concerned because, according to them, RERA has failed to meet its objectives despite being in operation for seven years. They have noted that a significant number of complaints are still pending with consumer forums, indicating the ineffectiveness of RERA.
What are the key issues highlighted by the FPCE in their letter to the Consumer Affairs Secretary?
The main issues highlighted by the FPCE include the large number of pending complaints with consumer forums, the lack of trust in RERA, and the need for sector-specific guidelines to protect consumers in the real estate sector.
What does Section 71 of the RERA Act allow consumers to do?
Section 71 of the RERA Act allows consumers to withdraw their pending complaints from consumer forums and approach RERA for redressal. However, many consumers have chosen not to do so, indicating a lack of confidence in RERA.
What is the role of the Consumer Affairs Ministry in this context?
The Consumer Affairs Ministry is responsible for safeguarding the interests of consumers across various sectors. In this context, the ministry is being urged to issue sector-specific guidelines to protect real estate consumers and address the malpractices prevalent in the sector.
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