Real Estate (Regulation & Development) Act 2016
Real Estate (Regulation & Development) Act, 2016 is made effective from 1st May, 2017 and
all new projects as well as ongoing projects are required to be registered and update their data
with RERA Authority as a matter of transparent mechanism for end users.
The four pillars of preamble of RERE laws which aim to protect the interest of allottee are:
RERE has now completed five years of operation across india and many state and uts have established regulatory authority and tribunal to address the issues faced in realty sector to achieve the prime objective behind very enactment of RERE law.
RERE law has undergone sea change through series of judgements delivered by various authorities, tribunal, high court & supreme court. The verdicts and judgements delivered over past five years has resulted in proposition of law being “UNSETTLED SETTLED & SETTLED UNSETTLED.” RERE laws intend to bring more transparency in the operation of the promoter and thereby providing open window to the homebuyers to identify good & reliable promoters who follow discipline set out by RERE laws. There has been series of measures taken by authority by increasing disclosure requirement on maharera portal, to bring more transparency and information to home buyers to take informed decision.
RERE law has undergone sea change through series of judgements delivered by various authorities, tribunal, high court & supreme court. The verdicts and judgements delivered over past five years has resulted in proposition of law being “UNSETTLED SETTLED & SETTLED UNSETTLED.” RERE laws intend to bring more transparency in the operation of the promoter and thereby providing open window to the homebuyers to identify good & reliable promoters who follow discipline set out by RERE laws. There has been series of measures taken by authority by increasing disclosure requirement on maharera portal, to bring more transparency and information to home buyers to take informed decision.
RERA enactment provides central legislation with powers to state government / union territories to
frame rules and thereby establish authority, tribunal for effective implementation and achievement
of objectives and preambles of law. At present nearly 72000 projects are registered across india
including jammu& kashmir. Maharashtra being pioneer state accounts for nearly 37200 projects
registered indicating the potentials of urbanisation and vertical development in maharashtra.
maharashtra, gujarat, punjab & haryana, uttar pradesh, rajasthan are amongst the most active and
vibrant authority dealing with project registration and evolvement of law through judicial
pronouncement.
the legislation has shouldered responsibilities on various professionals namely architect, engineer & chartered accountants to ensure that progress of the construction is truly shown to home buyers and to check the diversion of funds to other projects. Engineers and chartered accountants are required to carry out independent checks and enquiries to verify cost incurred on project and inflow of money from allottees. The entire exercise is done to ensure that project monies are used for the particular project only and home buyers gets their dream home which they have intended to acquire through their hard-earned monies and past savings. It is, therefore, utmost importance that this professional carry out their functions independently through detailed verification.
the legislation has shouldered responsibilities on various professionals namely architect, engineer & chartered accountants to ensure that progress of the construction is truly shown to home buyers and to check the diversion of funds to other projects. Engineers and chartered accountants are required to carry out independent checks and enquiries to verify cost incurred on project and inflow of money from allottees. The entire exercise is done to ensure that project monies are used for the particular project only and home buyers gets their dream home which they have intended to acquire through their hard-earned monies and past savings. It is, therefore, utmost importance that this professional carry out their functions independently through detailed verification.
JUDICIAL HIERARCHY SIMPLIFIED:
An attempt is being made to shift burden from judicial court to newly designed adjudication mechanism through regulatory authority and designated appellate tribunal to achieve one of the core objective of enactment of law i.e redressal of disputes and speedy disposal thereof. The disputes are now addressed in the following hierarchy from bottom to top and thereby releasing burden on civil court.
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Person aggrieved can approach u/s 31 of the Act to the Regulatory Authority
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Authority through dispute resolution mechanism including conciliation forum decides the issues based on merits and pass appropriate order.
- Person can still approach Appellate Tribunal in 1st Appeal before designated appellate tribunal.
- Tribunal also decide the Appeal on merits and pass appropriate order
- Tribunal are the final fact-finding authority
- 2nd Appeal can be preferred only on question of law before Hon’ble High Court having jurisdiction
- Further final reference can be made before Hon’ble Supreme Court on any question of law.
REMEDIES & RELIEFS AVAILABLE TO HOME BUYERS: -
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Interest for delayed possession
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Exit from the project with interest & compensation.
- Compensation claim for change in approved plan and at other instances
- Remedy for structural defects and poor-quality services
- Rights to get society or association of allottee registered
- Rights of Conveyance of Land & Building in favour of Association of Allottees
- Claiming Revocation fo Registration of Project including rights of completion of remaining work by Association of Allottees
- Right to call for Enquiry & Forensic Audit to check diversion of funds and other misconduct of Promoter
- Remedy against Agents for false information provided
UNSETTLED BURNING ISSUES: -
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Whether Society is Promoter?
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Whether Society has any obligations towards new buyers.
- How to convert stalled/lapsed project into dream realty?
- Whether Project can be de-registered by Authority?
- Whether Promoter can frustrate Agreement and contract with home buyers?
- Whether RERA prevails over Arbitration?
- Whether project which are under Insolvency Proceedings can be carved out for the benefit of home buyers?
- Whether tenants giving their consent for redevelopment are equity holders not entitled for any relief including SRA tenant?
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