RERA: Revolutionizing India's Real Estate Sector

The Economic Survey 2023-24 reveals that real estate regulators in Indian states and Union Territories have resolved nearly 1.25 lakh consumer complaints. Enacted in 2016, RERA aims to enhance transparency, accountability, and financial discipline in the real estate sector. As of July 2024, over 1.30 lakh projects and 88,461 agents have been registered under RERA.

Real estate regulators across Indian states and Union Territories have successfully resolved about 1.25 lakh consumer complaints against developers, as per the Economic Survey 2023-24.

The Real Estate (Regulation & Development) Act, 2016, commonly known as RERA, was introduced to reform India's real estate sector. Its primary goal is to foster transparency, accountability, and financial discipline, thereby empowering homebuyers and stimulating economic growth. The survey notes that almost all states and UTs, except Nagaland, have implemented RERA regulations.

As of July 1, 2024, more than 1.30 lakh real estate projects and 88,461 agents have been registered under RERA. The law has also established a fast-track dispute resolution mechanism, which has already resolved 1.24 lakh complaints.

RERA mandates an 'Agreement to Sale' during registration and requires two-thirds consent from allottees for any layout changes. It also outlines provisions for refunds, compensation, and penalties in case of obligation breaches.

The act has curbed delays in project delivery by mandating that 70% of funds collected from homebuyers be stored in a separate bank account designated for project construction and land costs. It also requires developers to make all necessary project disclosures, and only projects registered with RERA can be launched, thus protecting homebuyers from misrepresentation.

(With inputs from agencies.)