In the last decade, the real estate sector flourished at an unprecedented rate, especially in areas around Delhi. However, consumers of this sector faced a huge problem due to lack of proper legislation. Unregulated, developers would often make empty promises about the date of completion, requisite charges, carpet area etc. to defraud buyers and extract huge amounts of money from them. Thus, investment in the real estate sector used be a risky one. Therefore, Real Estate (Regulation and Development) Act, 2016 was enacted to bring about effective remedies for home buyers and to protect their rights, holding defaulting developers and builders liable for their actions.
The implementation of RERA assured buyers in the real estate sectors about the authenticity of a project. RERA has brought about transparency in this industry, the various checks and restriction placed on builders of a projects through RERA can convince buyers that the money they invest in a project will not be fraudulently siphoned off and that they will reimbursed for any unjustified delays.
It is still too early to say how effectively RERA will be implemented. State Governments have complied with the requirements of creating regulatory bodies charged with registration, dispute settlement, redressal procedure, etc. Home buyers have regained some amount of confidence in the Real Estate industry, as shown by a poll on Magicbricks. The poll revealed that in case of delay in possession, 72% of home buyers would file a RERA complaint, this shows the awareness people have about RERA and the confidence they have imbued in it.
Over the course of the last two years, RERA has come up and grown as an effective weapon for consumers in the real estate sector. However, there remains uncertainty in the implementation of the same. Loopholes are bound to eventually emerge and as they emerge, the fate of the real estate sector will lie in the hands of the regulatory bodies. As of now, RERA has established itself and gained the awareness necessary to protect home buyers.