Nagaland only State or UTs yet to notify RERA rules: Economic Survey

July 25, 2024 8 Views No Comment

Morung Express News
Dimapur | July 25

All States or Union Territories (UTs) have notified rules under RERA except Nagaland, noted the Economic Survey 2023-24 of the Government of India released on July 22 by the Ministry of Finance.

The Survey, however, noted that the State is in the process of notifying the rules.

As of July 1, 2024, a total of 32 States and UTs have also set up the Real Estate Regulatory Authority, and 1,24,947 complaints have already been disposed of, it informed.

Further, over 1,30,186 real estate projects and 88,461 real estate agents have been registered under RERA till July 1.

After the enactment of RERA, India is ranked 36th in the Global Real Estate Transparency Index in 2022.

What is RERA?
The Real Estate (Regulation & Development) Act, 2016 (RERA) was enacted to bring about ‘much-needed reform’ in India’s real estate sector.

The main objective of RERA is to encourage greater transparency, citizen-centricity, accountability, and financial discipline, thus empowering home buyers and boosting the economy, the survey said.

Key measures and outcomes from RERA’s implementation as per Economic Survey 2023-24 included:

Developer Accountability: Developers frequently failed to deliver promised project features, layouts, and amenities, thereby misleading homebuyers. RERA mandates an ‘Agreement to Sale’ at the time of registration and requires two-thirds consent from allottees/homebuyers for any layout changes. It also specifies provisions for refund, compensation, and penalties applicable to all stakeholders in cases of obligation contraventions.

Fair Transactions: Before RERA was enacted, there were many cases of builders not delivering flats or homes despite full payments from homebuyers. RERA addressed the issue by mandating that 70% of funds collected from homebuyers for a project must be maintained in a separate bank account dedicated to project construction and land costs.

Disclosures and Mandatory Registration: 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, preventing the possibility of any misrepresentation or false promises by the developers.

Dispute Resolution: RERA provides for the establishment of a fast-track dispute resolution mechanism for the settlement of disputes such as Real Estate Regulatory Authority.