The Real Estate (Regulation and Development) Act, 2016 (RERA) is a landmark legislation enacted to bring transparency, accountability, and fairness to the real estate sector in India. For decades, homebuyers struggled with project delays, lack of information, hidden costs, and unfair practices by developers. RERA was introduced to safeguard consumer interests, promote fair transactions, and create a level playing field between builders and buyers.
One of the core objectives of RERA is to ensure timely completion and delivery of projects. Developers are now required to register their projects with the respective state RERA authority before advertising, selling, or booking units. This guarantees that only authorized and compliant projects are marketed, preventing fraudulent activities.
The Act mandates developers to maintain 70% of project funds in a dedicated bank account, ensuring that the money collected from buyers is used only for that specific project. This provision prevents diversion of funds and secures the buyer’s investment.
For homebuyers, RERA provides clarity on carpet area, project specifications, delivery timelines, and legal rights. In case of delays or violations, buyers can seek redressal through state-level RERA authorities and appellate tribunals, making the grievance resolution process faster and more efficient compared to traditional litigation.
For developers, RERA brings discipline, credibility, and long-term trust. By adhering to RERA compliance, builders not only avoid penalties but also enhance their reputation in the market. The law has thus reshaped the real estate industry into a more transparent, organized, and consumer-centric sector.
In essence, RERA is not just a regulatory law; it is a confidence-building framework that protects buyers, regulates developers, and strengthens the real estate sector, contributing to India’s economic growth.