India has a vast population in which we have basic needs including food, house, and jobs in an ever-increasing mode. The need for house among these fields is one of the major which every one needs the most. In this sector, thousands of people have grown to be rich and create a huge amount of wealth but there are many of them have made a loss in the real estate business. As it is one of the leading revenue generators for the government it always becomes the most discussed topic among all but it lacks because the government has no such regulations on this sector. So even it has such a strong presence in the country, it never had a regulatory body that governs, makes the control on the non-delivering the value. So due to the failure of the government to regulate this sector and to observe these situations, many people who have entered this have become the victims of some scheming people doing the real estate business. The buyers who come from a middle-class background who put their hard earn money in this almost unregulated sector have time and again fallen prey to such petty real estate developers who are making fool to such peoples. There was a growing need to bring a transparent government body that can check the developers to track them to impose control on there working. Then the Government of India makes a step into it and delivered by making an authority known as RERA which stands for Real Estate Regulatory Authority. RERA was passed by the parliament in March 2016.
The objective of RERA which is introduced by the Government of India is to bring justice to the buyer through making strict policies that have to by the developers who want to sell their projects to the buyers. The RERA ensures and promises that it will help people by providing a high level of transparency and discipline that these builders must have to follow.
This law RERA is still in the early phase of development but it ensures the thing that there will be a huge relief for the buyers regarding developer-specific risk. The mechanism of RERA will be made a common ground for both the developers and the buyers. Transparency is the key point under the rules in RERA, as the government wants every aspect of information that the general public should know should be made available on the informational portal.
Strict Regulations under RERA
Now when the RERA is introduced the regulatory risk will also be levied upon the developer as he will have to pay compensation if any mishap happens during giving the possession of a unit to the buyer. All the builders will have to register themselves under the Real Estate Regulatory Authority which will see a low risk in the property business.There are some of the risks that people face through developers which are as follows:
- Selling of the flats multiple times to different buyers/parties
- The developers generally delay in giving possession to the buyer which happens due to various reasons including malpractices such as funding crisis, demanding additional charges in the name of premium or additional facilities provided by the developers, reducing carpet area, changing the plans of the societies, etc
- The contracts made are one-sided in the favor of developers, for example, a penalty of a massive 21% if buyer delays the payment even by a day
The entrance of RERA is now establishing transparency in this sector, now there are regulations that the developers have to follow to work. This is one of the big step taken by the government to make transparency in this sector, they are taking further steps for implementation in various states so that it becomes an organized and regulated sector so that everyone can trust.