{"id":202526,"date":"2022-08-29T18:43:54","date_gmt":"2022-08-29T13:13:54","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=202526"},"modified":"2022-08-29T18:43:54","modified_gmt":"2022-08-29T13:13:54","slug":"fallty-towers-lesson-from-the-supertech-demolition-reduce-the-risk-borne-by-homebuyers-improve-rera","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/fallty-towers-lesson-from-the-supertech-demolition-reduce-the-risk-borne-by-homebuyers-improve-rera\/","title":{"rendered":"Fallty towers: Lesson from the Supertech demolition: reduce the risk borne by homebuyers, improve Rera"},"content":{"rendered":"\n<p><strong>Source<\/strong>: The post is based on an article<strong>\u00a0\u201cFallty towers: Lesson from the Supertech demolition: reduce the risk borne by homebuyers, improve Rera\u201d<\/strong>\u00a0published in\u00a0<strong>The Times of India<\/strong>\u00a0on\u00a029th\u00a0August 2022.<\/p>\n<p><strong>Syllabus: GS 3 \u2013 Government policies for various industries<\/strong><\/p>\n<p><strong>News: <\/strong>This article discusses the issues associated with real estate in India and about Real Estate (Regulation and Development) Act, 2016.<\/p>\n<p>The demolition of Supertech Twin Towers in Noida cheered many, and it was the news that was seen throughout the media.<\/p>\n<h5><strong>What are the issues with real estate?<\/strong><\/h5>\n<p>Indian households hold about 77% of total assets in real estate. It\u2019s the largest single investment most families make.<\/p>\n<p>This makes homebuyers, disproportionately, vulnerable to real estate sector risk.<\/p>\n<p>The tripartite agreement between builder, bank, and buyer requires the buyer to pay a part of the project cost in advance. The bank covers the residual cost and the builder underwrites EMIs, till possession is handed over.<\/p>\n<p>There are a number of cases in this tripartite agreement where builders default and banks chase the hapless buyer despite the agreement detailing the obligations of all sides.<\/p>\n<p>In one such case, the Delhi high court this year ordered interim protection to buyers against threat of action by banks. But there are many such cases.<\/p>\n<p>Despite e-governance initiatives, there is hardly any change on the ground.<\/p>\n<p>So, any meaningful reform has to address the spread of risks among stakeholders.<\/p>\n<h5><strong>What is the Real Estate (Regulation and Development) Act, 2016? <\/strong><\/h5>\n<p>It was enacted in 2016.<\/p>\n<p>The advantages of RERA are:<\/p>\n<ul>\n<li>It brings about the standardization of contracts.<\/li>\n<li>It reduces the information asymmetry between buyers and other stakeholders by making relevant information public.<\/li>\n<li>It also minimizes misuse of advance payments made by buyers.<\/li>\n<\/ul>\n<h5><strong>What are the issues associated with RERA?<\/strong><\/h5>\n<p>It can\u2019t address older problems like that of the Supertech towers.<\/p>\n<p>It cannot resolve the issue of corruption at the level of urban bodies.<\/p>\n<p>It also suffers from the general weakness in state capacity as each state needs to establish a regulatory body.<\/p>\n<p>However, RERA is the best available solution today. It will require state governments to invest in enhancing its capacity because a better system will benefit the buyers.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Source: The post is based on an article\u00a0\u201cFallty towers: Lesson from the Supertech demolition: reduce the risk borne by homebuyers, improve Rera\u201d\u00a0published in\u00a0The Times of India\u00a0on\u00a029th\u00a0August 2022. Syllabus: GS 3 \u2013 Government policies for various industries News: This article discusses the issues associated with real estate in India and about Real Estate (Regulation and Development)&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/fallty-towers-lesson-from-the-supertech-demolition-reduce-the-risk-borne-by-homebuyers-improve-rera\/\">Continue reading <span class=\"screen-reader-text\">Fallty towers: Lesson from the Supertech demolition: reduce the risk borne by homebuyers, improve Rera<\/span><\/a><\/p>\n","protected":false},"author":10308,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[216,10496],"class_list":["post-202526","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-times-of-india","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704815255},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/202526","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10308"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=202526"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/202526\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=202526"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=202526"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=202526"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}