RERA AND THE REDRESSAL OF GRIEVANCES FOR HOMEBUYERS
Introduction
In recent years, the real estate sector has witnessed significant growth, attracting a large number of homebuyers. However, the lack of transparency and accountability in the industry often resulted in disputes and grievances for buyers. To address these concerns, the Government of India introduced the Real Estate (Regulation and Development) Act, 2016 (RERA). This landmark legislation aimed to regulate the real estate sector and establish a robust mechanism for the redressal of grievances for homebuyers. In this article, we will explore the key features of RERA and how it facilitates the resolution of grievances.
- Overview of RERA
The Real Estate (Regulation and Development) Act, 2016, commonly known as RERA, is a central legislation enacted by the Indian government. Its primary objective is to promote transparency, accountability, and efficiency in the real estate sector. RERA applies to both residential and commercial projects and seeks to safeguard the interests of homebuyers.
- Key Features of RERA
a. Mandatory Registration: RERA mandates that all real estate projects with a certain number of units must be registered with the respective state’s Real Estate Regulatory Authority (RERA). This ensures that developers adhere to prescribed standards and regulations.
b. Disclosure of Information: Developers are obligated to provide comprehensive information about the project, including layout plans, approvals, timelines, and completion schedule. This transparency helps homebuyers make informed decisions.
c. Carpet Area Specification: RERA requires developers to quote the carpet area (usable area) instead of ambiguous terms like “super area” or “built-up area.” This prevents misleading marketing tactics and ensures buyers know the actual space they will receive.
d. Escrow Account: RERA mandates that developers must deposit a specific percentage of the project’s funds into a separate escrow account. This measure prevents diversion of funds and ensures that the money collected from buyers is utilized for the intended project.
e. Grievance Redressal Mechanism: RERA establishes Real Estate Regulatory Authorities (RERAs) in each state to address grievances of homebuyers. These authorities act as quasi-judicial bodies and have the power to adjudicate disputes, impose penalties, and enforce compliance.
- Redressal of Grievances under RERA
a. Filing Complaints: Homebuyers can file complaints with the respective state’s RERA against developers for various issues such as delays in project completion, faulty construction, non-compliance with the agreement, or misleading advertisements.
b. Timely Resolution: RERA aims to resolve complaints expeditiously. The authorities are required to dispose of complaints within a specified timeframe, ensuring quick redressal of grievances and minimizing delays.
c. Adjudication and Penalties: RERAs have the authority to summon developers, conduct hearings, and issue orders for the resolution of disputes. They can impose penalties on developers for non-compliance or any violation of RERA provisions.
d. Appellate Tribunal: If dissatisfied with the decision of the RERA, homebuyers or developers can further appeal to the Real Estate Appellate Tribunal established under RERA. The appellate tribunal provides an additional layer of recourse for resolving grievances.
e. Consumer Protection: RERA emphasizes consumer protection by ensuring that developers adhere to the terms and conditions mentioned in the agreement. It provides buyers with a legal framework to seek redressal and obtain compensation for any harm caused due to developer malpractices.
Conclusion
The introduction of RERA has significantly strengthened the real estate sector by establishing a regulatory framework and redressal mechanism for homebuyers. It promotes transparency, accountability, and fairness, addressing the long-standing grievances faced by buyers. With RERA in place, homebuyers now have an effective avenue to seek resolution for disputes and ensure that their rights are protected. It has not only improved buyer confidence but also contributed to the growth and stability of the real estate market in India.
