Transformation of Indian real estate landscape by RERA

financialexpress.com:

While the advent of any new legislation brings with itself its own set of challenges in respect of enforcement and application, the onset of the Real Estate (Regulation and Development) Act, 2016 (RERA) has been instrumental in bringing enhanced transparency, accountability of developers, instilling significant comfort and confidence in home buyers and reshaping the landscape of the Indian real estate industry. Prior to commencement of RERA, there was not only limited scope of dispute resolution for flat buyers but also a lack of control and regulation of finances amongst promoters which led to exploitation at the cost of allottees.

Promoters under the RERA regime are now prohibited from advertising, marketing, booking or selling or offering for sale or inviting any person to purchase any apartment, plot, etc. in a project without procuring registration from the State level authority established for each State (RERA Authorities). RERA Authorities have also been granted significant control and regulation in respect of registration and validity of projects and promoters are mandated to ensure all compliances are in place. For instance, obtaining commencement certificate, sanctioned plans, proforma of allotment letter and agreement for sale, etc., before RERA registration for a project may be granted to such promoter.

RERA has also mandated quarterly compliances to be adhered to by the promoters including updating details of project costs, other promoters in the project, encumbrances and litigations, percentage of project work completion, sold and unsold inventory from time to time and failure to comply may attract penal action under RERA. It is pertinent to note that while existing encumbrances on a project property may be