The regulatory authorities bear sole responsibility for restoring trust in the sector and prospective homebuyers' confidence. It should be their goal to act proactively rather than reactively.
Parliament passed the RERA Act, 2016 (RERA) in March 2016, and it went into effect on May 1, 2016. It was six years old last month.
In all these years, it is evident that the legislative basis aimed at empowering India's homebuyers has been strengthened by various High Court and other judicial decisions. The fact that the executive, legislature, and judiciary recognized that many builders were defrauding homebuyers and stealing their life savings is RERA's greatest success.
Though the first few years were spent putting in place the implementation architecture, such as initial success in project and operative registrations, regulatory authorities and appellate tribunals have recently begun asserting their power. This is yet another RERA success and a positive sign in the involvement of homebuyers.
The Supreme Court ruled in Configured to generate Organizers and Development companies Pvt. Ltd. vs State of UP & Others that the regulatory agency has the authority to order refunds, interest, and penalties, and that the adjudicator has the authority to award compensation. It also stated that the regulatory agency can entrust its power and authority to a single citizen to hear complaints; or that the deposit requirement under stipulation to Section 43(5) for enjoyable appeals is consistent with the Indian Constitution. As a result, it energized millions of homebuyers in a single stroke.
The deposit requirement for having to file appeals by builders was envisioned in the law as a disincentive to make sure that construction companies do not file attempts to appeal to avoid regulation orders. This is a great win for homebuyers who are hoping for an early settlement of the conflict.
In Uttar Pradesh, the High Court did order the Gautam Buddh Nagar Divisional Magistrate to a court hearing, albeit virtually, in a case involving the refund of homebuyers' money. This aided in the case's early resolution, with the homebuyer receiving his entire savings back.
In one case, RERA issued warrants issued for the executives of a real estate firm in Gurugram, Haryana, and in the other, it was guided to freeze all bank balances associated with an estate entity. Correspondingly, in Uttar Pradesh, RERA fined nine builders Rs 1.40 crore for failure to obey its orders. In exercising its authority, MahaRERA ordered a builder in Maharashtra to pay 10,000 per day until ownership of a flat was handed over. These and other decisions like them have strengthened the will, eagerness, and devotion of estate regulatory agencies to deliver justice.
The CAC made several significant decisions, including the formation of a committee comprised of homebuyers' representatives to handle cases where orders issued have still not been put in place; the requirement to form a sub-group under the combination with various of the Receptionist, Mo/HUA, to meet every 6 months to resolve homebuyers' issues; and the minster, homebuyers, and builder legislators to cooperatively petition the Governments of West Bengal and Telangana to expeditiously implement RERA. It was the first CAC gathering to address homebuyer concerns, paving the way for future meetings.
Challenges Ahead
Despite these accomplishments, it would be unwise not to mention flaws and deficiencies.
The real estate industry is still far from being free of the scandals that have made it famous. Homebuyers are unsure whether project enrollment with RERA authorities ensures timely possession of all promised amenities. Homebuyers continue to be concerned about the builder disappearing with their money or entangling them in unneeded and burdensome litigation. RERA tends to fall short of the expectations in this area. The problem is not with the law, but now with those in charge of enforcing it.
The regulatory authorities bear sole responsibility for restoring trust in the sector and prospective homebuyers' confidence. It ought to be their goal to act proactively rather than reactively. They should be innovation input system mechanisms that allow them to intervene in projects on time and get people back on course before it's too late, such as random checks to make sure all promised accommodations are provided. It would also aid in the avoidance of unnecessary litigation.
Without a doubt, RERA has established a strong presence on the ground in the interests of homebuyers and it has struck fear between many unscrupulous builders. Despite the fact that we have come a long way in the last six years, there is still a ways way to go before humans can honestly say RERA has managed to succeed in reforming and professionalizing the real estate sector.
With the Supreme Court's sensitivity to having to suffer homebuyers and the newly found zeal of executives and regulatory agencies, RERA will exceed all stakeholders' expectations, ensuring that home ownership becomes seamless and free of risk and misconduct.
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