The Real Estate (Regulation and Development) Act 2016, effective from 1st of May 2016, has been covering all the commercial and residential projects developed by any registered builder and non-registered developers. As per this act, every aspiring developer has to register its venture first and then make a move to acquire land or construct the premises. This unique step has been taken by the Government of India and has been amended in every state so as to ensure the best interest of every consumer.

Real estate industry in India was not a fair place before this act was amended. There are so many cases where the consumers are treated in a non-respectful way. In fact, the developers use to delay the project delivery time and often provided substandard residential and commercial units to the consumers. After RERA was amended, the potential of the real estate industry in India became much more constructed. The consumers can now easily invest in the real estate properties in the RERA approved projects so that they can rest assured regarding their investment. From now on, consumers such as the families and investors will not have to worry about their decision.

Transparency in the industry

RERA has affected every entity in this segment such as the stakeholders, brokers, buyers, builders, etc in a positive way. The deals and provisions have become transparent as the registered developers have to show every detail of the project to the RERA administration. In fact, the government has constructed a committee which will recommend and advise RERA so as to remove various difficulties in the process. As per the officials of the team, this committee has been developed and will be headed by the Ministry of Housing and Urban Affairs (MoHUA). Big the second most populated country and the 7th largest country in the world, the real estate segment in India is one of the biggest industries in the world and needs to be more constructive for the betterment of the consumers in the future.

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The decision was taken a few months after the stakeholders and homebuyers suggested a proper implementation of the act. This proposal was presented in the four workshops organized by the ministry. The committee will be headed by Shiv Das Meena, Joint Secretary, MoHUA.

Till date, the 28 states will be under this act and the laws will be strictly implemented. The panel will consider every suggestion received in the workshops and will be recommended if necessary. The committee will seek all the respective factors of this industry to find the changes needed to be done. Based on its recommendations, the ministry will act and make delicate changes and implement them countrywide. All these changes will be done to remove the difficulties on the law’s clause amended centrally. The first meeting was held on 3rd January 2019.

Why RERA is a good step?

The homebuyers have long been suffering from the oppression of the developers in this industry. In fact, it has been found that the transactions were biased and always in the developer’s favor. Due to the moral code violation of the developers, this new act was implemented so that the homebuyers can make an unbiased deal to avail the best properties in the market. RERA has been designed to bring transparency and simplicity in the real estate deals and it will surely aid the homebuyers to invest in real estate properties. RERA is the first regulation act for the real estate industry in India and it will need immense changes to fight off the difficulties.

How it will impact?

• Increased quality of the project construction
• Proper information to the allotters regarding minor changes or addition in the project.
• The developers will be bound to share all the information regarding the project plan, government approvals, layout, etc when needed.
• RWA formation after the majority of the constructed units is sold.
• No advertising or promotional approaches for the developers before RERA registration is done.

The implementation of this act will make the industry far more constructive and beneficial for the homebuyers and investors. The registration of every developer is compulsory based on the new rules so that the government can keep an eye on every activity of the stakeholders to maintain the transparency.