RERA in States and UTs Dispose of Nearly 1.25 Lakh Consumer Complaints

NEW DELHI: According to the Economic Survey 2023-24, real estate regulators in various states and Union Territories have resolved nearly 1.25 lakh consumer complaints against developers.

The Real Estate (Regulation & Development) Act, 2016, commonly referred to as RERA, was enacted to bring significant reforms to India’s real estate sector.

The primary aim of RERA is to promote greater transparency, citizen-centricity, accountability, and financial discipline, thus empowering home buyers and stimulating the economy.

The survey noted that all states and Union Territories have notified rules under RERA, except Nagaland, which is currently in the process of doing so. As of July 1, 2024, more than 1,30,186 real estate projects and 88,461 real estate agents have been registered under RERA.

“RERA provides for the establishment of a fast-track dispute resolution mechanism for the settlement of disputes. As of July 1, 2024, 32 states and Union Territories have established the Real Estate Regulatory Authority, and 1,24,947 complaints have already been resolved,” the survey reported.

RERA mandates an ‘Agreement to Sale’ at the time of registration and requires two-thirds consent from allottees/homebuyers for any layout changes. The law also includes provisions for refunds, compensation, and penalties for all stakeholders in case of obligation breaches.

“Before RERA was enacted, there were numerous instances of builders failing to deliver flats or homes despite full payments from homebuyers. To address this issue, RERA mandates that 70 percent of funds collected from homebuyers for a project must be maintained in a separate bank account dedicated to project construction and land costs,” the survey explained.

RERA also requires developers and project promoters to disclose all necessary information about projects, including permissions obtained from authorities, date of launch, promised date of delivery, project specifications, and amenities.

Furthermore, the interests of homebuyers are protected as only projects (above 500 square meters and above eight apartments) registered with RERA can be launched, thus preventing any misrepresentation or false promises by developers, the survey stated.