The Real Estate (Regulation and Development) Act of 2016 (Act) and the Real Estate Regulatory Authority developed under it were created to balance the interests of many players in the real estate industry, minimise widespread misconduct, and safeguard purchasers. While the legislation took effect in 2017, it was not without controversy, with intense cabinet meetings, in-depth arguments about constitutional interpretation, and spirited legal opinions. The act was signed into law as federal legislation, leaving it up to the states to enact rules to carry out its contents.

The legislation was supposed to be executed properly, free of restrictions and impediments, but enforcement has run into barriers that have jeopardised and damaged its goals. Despite this, the legislation has had a major influence on the real estate industry. 

A series of court decisions have narrowed the scope of the legislation by modifying its legal standing. In addressing apparent discrepancies between the Consumer Protection Acts (CPA) and the Insolvency and Bankruptcy Code, 2016 (IBC), the Supreme Court declared the IBC to be just an auxiliary authority in real estate transactions rather than the final say. The Supreme Court has held that in the event of a disagreement, the IBC takes precedence over the act. Accordingly, the Court decided in Imperia Structures Ltd v Anil Patni that Section 79 of the act does not clearly exclude consumer forums from jurisdiction, and that the legislative objective was to enable beneficiaries to choose among consumer procedures and the act. In Ireo Grace Realtech (P) Ltd v Abhishek Khanna, the decision was maintained. Through the prerogative jurisdiction, the National Company Law Appellate Tribunal also acquired jurisdiction, ignoring the remedy afforded to homebuyers under Section 18 of the legislation. Homebuyers now have three simultaneous remedies under the act, the IBC, and the CPA, and they can take advantage of the circumstance by forum surfing, a practice that the Supreme Court outlawed in 1998.

RERA Filing Procedure 

• The complainant must go to the State's official website to make a complaint with the Authority. Look for the Complaint Registration page on the site.

• To file a complaint, go to the link and fill out the form. You will be directed to a complaint form where you must fill out the contents of your complaint.

• Homebuyers will be requested to provide personal information such as their name, address, contact information, and project information when making a complaint. Supporting documentation can also be attached by complainants.

• After filling out the form completely, the complainant must pay a fee of Rs 1,000 for submitting the complaint or Rs 5,000 if the complaint is submitted with the Adjudicating Officer. The transaction can also be completed using an online payment method.

RERA revamping the Real Estates!

Builders will not be able to postpone their projects.

Not being successful in obtaining possession of units from the builder will no longer be an issue under RERA. Builders who miss the project deadline will have to pay a 2% interest rate above the cost of borrowing of the State Bank of India to house purchasers. This is in addition to the prospect of up to three years in jail.

No loot on the areas that are a part of the House 

Previously, builders charged for built-up and super-built-up areas. This means that if a consumer purchased for 1,300 square feet, they would only be allowed to utilise 900 to 1,000 square feet of carpet. This is the net usable floor space of an apartment when just the interior walls are taken into account. The rest of the space was encased by exterior walls, which included the lobbies, service shafts, balconies, open terrace, porches, communal areas, and so on. The term 'carpet area' has been defined in RERA. Property can no longer be sold based on its super built-up area; instead, it must be sold based on its carpet area. Additionally, before revising the design of a property, developers will need the approval of two-thirds of the buyers. 

Builders will be called to account for any structural flaws.

Many customers have expressed concerns about the building quality. Under RERA, any structural issue in the property must be remedied by the developer for a period of up to five years from the date of handover possession. The promoter is obligated to correct any problems within 30 days at no additional cost.

No foul play with the investment money. 

The largest stumbling block for buyers has been the delayed delivery of real estate developments. As per economic times, practically all projects started between 2010 and 2013 exceeded their delivery deadlines, owing to builders diverting funding to other projects. Under RERA, however, the developer would be forced to deposit 70% of the money collected from purchasers into an agreement to pay. Following that, funds will be deducted in accordance with the building stage, as determined by the engineers and certified accountants of the builders.

Concerns will be handled and resolved in a timely manner.

To resolve builder-buyer issues, each state will establish regulatory organisations and appellate courts under RERA. Any individual who has been wronged by a decision can anticipate a response from the appeal court within 120 days.

Prior to actually selling, builders would require all approvals.

Previously, builders frequently offered projects that lacked all permissions, producing several issues for customers. Builders and agents will be required to register with the regulator, reveal every aspect about the project, and sell projects only when all essential permissions have been obtained under RERA.

There will be no more deceptive advertising. 

Countless developers used to market their projects by making bogus promises and offers. However, under RERA, each marketing must include the RERA registration number, and all promotions and advertisements must be totally truthful and free of any deceptive promises.

Conclusion 

RERA, the Indian real estate regulator, has been a cornerstone in the digital service delivery scene in India. RERA portals have considerably improved over time. Simultaneously, RERA portals must become more scalable, interoperable, and modular. Once the Regulatory Authority is established, all builders and dealers must register with it. They will also be needed to register their project undertakings, involving financial accounts, a copy of the legal title deed, and other documentation. They will then be given a project-specific registration number. As a result, be certain you purchase a project that has been registered with the regulatory authorities!