On the occasion of celebrating the completion of three years of RERA, Minister for Housing and Urban Affairs Hardeep Singh Puri stated that the regulatory authorities would introduce effective RERA to raise confidence in the real estate sector to cope with the COVID-19 pandemic crisis.
Implementation of RERA Law
The Real Estate Act (Regulation and Development) was introduced in parliament in 2016, and the legislation came into force from May 2017. RERA’s key goal is to help rebuild trust between a buyer and the builder. And, only the real and efficient implementation of RERA will restore that confidence. This will help ease the pressure of piling up inventory in the sector and provide the developers with the requisite financial support to complete pending projects.
To boost the real estate sector during this pandemic, the Center issued advisories to regulatory authorities in all States to automatically extend the timeline for completing all real estate projects registered under RERA for six months, where completion expires on or after March 25, 2020. If necessary, the regulatory authorities can extend this timeline for a period of up to 3 months for the entire State or part, respectively.
Extending the completion date for all RERA registered properties not only benefits the builders but also allows to protect the interests of all stakeholders, including home buyers and financial institutions. Due to COVID 19, this will go a long way in addressing the uncertainty among home buyers and developers and is a step towards regulatory easing.
The practical implementation of RERA has been notified to 31 States or Union Territories. While 30 states have established the Real Estate Regulatory Authority and 24 states have set up Real Estate Appellate Court. Over 52,000 Real Estate Projects and 40,517 Real Estate Agents have registered under RERA. The Real Estate Regulatory Authorities have handled more than 46,000 complaints across the country.
The effective implementation of RERA Law would help in restoring trust between the developers and property buyers in the real estate sector, besides ensuring that there are no defaults in the delivery of projects.
By: Shailaja K