Failures and shortcomings outweigh benefits:RERA

• Background:

•Indian Real Estate sector- largely unregulated till 2016.
 Unfair practices affecting the homebuyers adversely.
 Need to regulate the sector to ensure transparency and accountability.

Real Estate (Regulation and Development) Act, 2016 (RERA)

• For reforming the sector, encouraging greater
transparency, citizen centricity, accountability
and financial discipline.

• An Act to establish the Real Estate Regulatory Authority and an Appellate Tribunal.
• Objective: To ensure regulation and promotion of
real estate sector in an efficient and transparent manner; protect the interest of the home buyers.

Key provisions of RERA

• States shall establish the Real Estate Regulatory Authority.
 Two or more States or UTs may establish one single Authority.
 Govt may establish more than one Authority in a State or UT.

• 31 States/Uts – notified rules under RERA.

• 30 States/Uts – set up Real Estate Regulatory
Authority.

• 24 States/Uts – set up Real Estate Appellate Tribunal.

• Composition: a chairperson and not less than two whole time Members
 Selection Committee: Chief Justice of the HC/nominee; Dept Secretary dealing with
Housing and the Law Secretary.
 Removal: Only through an order made by the State- after an inquiry made by a Judge of the High Court
removal Grounds for : adjudged as an insolvent; convicted of an offence involving moral turpitude; became physically or
mentally incapable etc

Real Estate Appellate Tribunal

• A person aggrieved by order of the Authority-
may appeal before it.

• Advantages: Timely delivery of apartments to
buyers, online availability of accurate details of a project, mandatory clearances and after sales services.

• Disadvantages: Many projects outside the
ambit of the law; lack of transparency on the
RERA website.