The Real Estate Regulatory Authority (RERA) is a regulatory body established to protect the interests of homebuyers and promote transparency in the real estate sector in India. It was enacted under the Real Estate (Regulation and Development) Act, 2016, and has been functioning since 2017. In this article, we will discuss the RERA and its role in regulating the real estate sector.
Introduction: The RERA is a regulatory body that promotes transparency and accountability in the real estate sector. It ensures that real estate developers register their projects and disclose all necessary information to potential buyers.
Registration: The RERA makes it mandatory for developers to register their projects with the authority before advertising or selling them. The registration process includes providing details of the project, such as its location, size, and cost, among other things. Developers are also required to provide details of their past projects, including approvals, completion certificates, and other necessary information.
Protection for Homebuyers: The RERA provides homebuyers with protection against unscrupulous developers. It ensures that developers deliver projects on time, and in case of any delay, it mandates them to pay penalties. Additionally, developers are required to deposit 70% of the funds collected from buyers in a separate account, which can only be used for the construction of the project.
Dispute Resolution: The RERA provides a dispute resolution mechanism for homebuyers and developers. It has the power to adjudicate disputes between homebuyers and developers, and its decisions are final and binding.
Promoting Transparency: The RERA promotes transparency in the real estate sector by ensuring that developers provide accurate and complete information about their projects. It also provides an online platform for buyers to check the status of registered projects, view approved plans, and other necessary information.
Penalties: The RERA has the power to impose penalties on developers who violate its rules and regulations. Penalties can range from fines to imprisonment, depending on the severity of the violation.
In conclusion, the RERA is a regulatory body that has been established to promote transparency and protect the interests of homebuyers in the real estate sector. Its efforts towards regulating the sector are essential for the sustainable development of the real estate industry and the protection of homebuyers’ interests. The RERA’s role in providing a dispute resolution mechanism and imposing penalties on erring developers has brought about a significant change in the real estate sector, and it is a significant step towards making the sector more transparent and accountable.
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