The Real Estate Regulation & Development Act, 2016 (RERA) was passed in the Parliament in March 2016 & it came into effect from 1st May 2016. In May 2022, RERA completed 6 Years. RERA law, various decisions of Hon. Supreme Court and other judicial forums like NCDRC, NCLT has substantially empowered the India’s Homebuyers. Modi govt realised that the homebuyers were being cheated by many builders and these builders need to be brought to justice thus brought such laws.
Initial few years after implementation of RERA was spent getting the legal structure in place. Currently Regulatory Authorities & Appellate Tribunals have started taking stringent action in many cases if not in all cases. In many of the cases, remarkable decisions have been taken by the RERA Authorities. Many homebuyers have got justice through RERA and other courts.
In a case of Gurugram, RERA issued arrest warrants against the directors of a Real Estate Company and in another case, it directed to freeze all the bank accounts associated with real estate entity.
Similarly, Uttar Pradesh, RERA imposed penalty of Rs. 1.40 Cr on 9 builders for non-compliance of the orders. Similarly in another case, Maha RERA ordered a builder to pay Rs. 10,000 daily until the possession of flat was given to homebuyer.
Homebuyers are still not 100% sure that the RERA Laws can help them with timely possession of their promised Flat or Home, etc but they have hope of getting delay penalty charged from builder. Despite the success, there is a long way to go as real estate sector is still far from removing its malpractices.