Success of Real Estate Regulatory Authority (RERA) (Download PDF)

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The Minister for Housing and Urban Affairs while inaugurating the ‘Housing for all 2022’ (NAREDCO 15TH National Conference) announced about the success of Real Estate Regulatory Authority on 20th Sept 2019. The stakeholders have begun to accept the regulators. The government has projected a target of 1.12 million houses under Housing for All scheme. Out of 85 lakh houses sanctioned, construction is in progress for more than 50 lakh houses apart from 27 lakh houses have already been delivered.

Image shows of New Model Projects

Image Shows of New Model Projects

Image shows of New Model Projects

Real Estate (Regulation and Development) Act, 2016

  • The RERA was formed for regulating and promoting the real estate sector along with selling of plot, building or apartment in an efficient manner. RERA aims at protecting interests of consumers in the real estate sector.

  • All the builders who are developing a project in areas where the land exceeds 500 square metres have to compulsorily register with RERA even before the advertisement and launching of the project.

  • The promoter of a real estate development firm has to maintain a separate escrow account for each of their projects. A minimum 70 % of the money from investors and buyers will have to be deposited. This money can only be used for the construction of the project and the cost borne towards the land.

  • The builders have been asked to submit the original approved plans for their ongoing projects along with the alterations if that any made later.

  • The furnishing of details of revenue collected from allottees is a must, how the funds were utilised along with the timeline for construction, completion, and delivery. These details need to be certified by an Engineer/Architect/practicing Chartered Accountant.

National Real Estate Development Council

  • The National Real Estate Development Council was established in 1998 as a self-regulatory body.

  • The Council was under the aegis of Housing and Urban Affairs Government of India.

  • NAREDCO was formed to redefine the parameters of Indian Real Estate.

  • The Council was also formed with an aim to focus on rationalizing processes so that permissions and clearances for projects are received within set timelines.

  • Improving business viability and building capabilities for delivery of projects in a time bound manner is also one of the main objectives of National Real Estate Development Council (NAREDCO).

Draft Model Tenancy Act (MTA), 2019

  • Land is a state subject and states will have the authority to adopt or reject it.

  • The rights of interest of both the owner and tenant needs to be balanced.

  • MTA envisaged a grievance redressal mechanism comprising of Rent Authority, Rent Court and Rent Tribunal.

  • Setting up of a local vernacular language of the state to ensure submission of tenancy agreement along with other documents.

  • This act shall be applicable to both the urban as well as the rural areas in the state.

  • The rent authority must be informed by the landlord and the tenant after getting into an agreement.

  • To bring transparency and accountability in the existing system of renting of premises thereby protecting the interests of both the property owner and the tenant.

- Published/Last Modified on: September 25, 2019

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