RERA 2016 Act aims to protect the interest of the property buyers. The rules and regulations under RERA India aims to bring transparency and bridge the gap between buyers and sellers. Under the Act, it is mandatory for all the realty establishments to register with Real Estate Regulatory Authority, if the construction work exceeds 500 sq. m for launching a project or if a developer wish to define the skyline of a place.
The much cherished bill further brings relief to the buyers as promoters will now have to disclose the price based on carpet area. The carpet area will include spaces like kitchen, washrooms, etc. to let buyers know what all they are paying for. The layout of any project can be altered only after seeking consent from two-third of buyers.
Things have been made more stringent for promoters as they will have to ensure that the project is delivered on time. In case of delayed possession, developers might face penalty or imprisonment or both. The law seeks to vanquish all the discrepancies in the realty sector.
While bill addresses the issues of buyers but have left a gap while addressing the issues of promoters. Developers often have to take various NOCs for a project from the agencies. Many a times there is a delay from the end of these government agencies which makes developers incapable of completing the project on time.
RERA is also expected to increase the foreign inflow capital with greater transparency and liquidity. RERA is a blessing for the long messed up industry.