The Real Estate Regulatory Authorities (RERA) across various states and Union Territories (UTs) in India have successfully resolved 1,24,947 consumer complaints as of July 1, 2024, according to the Economic Survey 2023-24. This milestone underscores RERA's commitment to protecting consumer interests in the real estate sector.
The survey highlighted that all states and UTs, except Nagaland, have implemented regulations under the Real Estate (Regulation and Development) Act, 2016. Nagaland is currently finalizing its regulations. As of the same date, RERA has registered more than 1,30,186 real estate projects and 88,461 real estate agents.
The Real Estate (Regulation and Development) Act, 2016, was enacted to enhance transparency, financial discipline, and accountability in India's real estate sector. The Act mandates the establishment of a regulatory authority in each state/UT and requires the registration of real estate projects and agents with this body. Following the enactment of RERA, India was ranked 36th in the Global Real Estate Transparency Index in 2022.
RERA has introduced a fast-track dispute resolution mechanism and mandates that an 'Agreement to Sale' be established at the time of registration. It also requires two-thirds consent from allottees/homebuyers for any changes in project layout. Additionally, the Act specifies provisions for compensation, refunds, and penalties for breaches of obligations.
Under RERA, developers must allocate 70% of funds collected from homebuyers into a dedicated bank account for land costs and project construction. The Act also requires developers to disclose essential project details, including the launch date, permissions obtained, project specifications, expected delivery date, and amenities.
This robust regulatory framework aims to protect consumers and ensure the orderly growth of the real estate sector in India.
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