Real Estate Regulatory Authority: A Boost to Consumer Protection in India
RERA has empowered home buyers and boosted the economy by encouraging transparency, accountability, and financial discipline in the real estate sector.
Real EstateReraConsumer ProtectionHome BuyersDevelopersIndiaReal EstateJul 22, 2024
According to the Economic Survey 2023-24, real estate regulators in states and Union Territories have so far disposed of nearly 1.25 lakh consumer complaints against developers. This is a significant achievement, considering the fact 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. The survey highlighted that 32 states and UTs have set up the Real Estate Regulatory Authority, and 1,24,947 complaints have already been disposed of.
RERA provides for the establishment of a fast-track dispute resolution mechanism for the settlement of disputes. 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.
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.
Overall, RERA has played a crucial role in protecting the interests of home buyers and promoting transparency and accountability in the real estate sector.
Frequently Asked Questions
What is the main objective of RERA?
The main objective of RERA is to encourage greater transparency, citizen-centricity, accountability, and financial discipline in the real estate sector.
How many consumer complaints have been disposed of by real estate regulators in states and Union Territories?
Nearly 1.25 lakh consumer complaints have been disposed of by real estate regulators in states and Union Territories.
How many real estate projects and agents have been registered under RERA?
Over 1,30,186 real estate projects and 88,461 real estate agents have been registered under RERA.
What is the requirement for funds collected from homebuyers for a project under RERA?
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.
What is the threshold for projects to be registered with RERA?
Only projects above 500 square metres and above eight apartments can be registered with RERA.
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