{"id":77819,"date":"2021-01-21T14:56:56","date_gmt":"2021-01-21T09:26:56","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=77819"},"modified":"2021-01-22T10:26:08","modified_gmt":"2021-01-22T04:56:08","slug":"rera-2016-protects-the-interest-of-homebuyers","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/rera-2016-protects-the-interest-of-homebuyers\/","title":{"rendered":"RERA 2016 protects the interest of Homebuyers\u00a0"},"content":{"rendered":"<p><b><span data-contrast=\"none\">Synopsis:\u00a0<\/span><\/b><span data-contrast=\"none\">As compared to RERA 2013 act, the<\/span><b><span data-contrast=\"none\">\u00a0<\/span><\/b><span data-contrast=\"none\">Real Estate (Regulation and Development) Act (RERA) 2016 was successful in empowering the home buyers. This has reduced the incidence of unfair trade practices in the real estate sector.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"none\">How RERA 2016 act was better than RERA 2013 act?<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">The RERA 2013 act had the following issues;<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">\u00a0<\/span><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li data-leveltext=\"\u00b7\" data-font=\"Symbol\" data-listid=\"1\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"none\">It did not cover either \u201congoing projects\u201d or \u201ccommercial real estate\u201d.\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\u00b7\" data-font=\"Symbol\" data-listid=\"1\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"none\">Also, the\u00a0<\/span><span data-contrast=\"none\">minimum limit for<\/span><span data-contrast=\"none\">\u00a0registration\u00a0<\/span><span data-contrast=\"none\">of projects\u00a0<\/span><span data-contrast=\"none\">was\u00a0<\/span><span data-contrast=\"none\">so high that it excluded many projects from\u00a0<\/span><span data-contrast=\"none\">the coverage under law<\/span><span data-contrast=\"none\">.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\u00b7\" data-font=\"Symbol\" data-listid=\"1\" aria-setsize=\"-1\" data-aria-posinset=\"3\" data-aria-level=\"1\"><span data-contrast=\"none\">These exclusions made the 2013 bill meaningless and harmful to the interests of home buyers.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><span data-contrast=\"none\">However, the 2016 RERA act has fixed all the loopholes in the RERA act 2013,<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">\u00a0<\/span><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li data-leveltext=\"\u00b7\" data-font=\"Symbol\" data-listid=\"2\" aria-setsize=\"-1\" data-aria-posinset=\"4\" data-aria-level=\"1\"><span data-contrast=\"none\">First, after a holistic review along with multiple stakeholder consultations both \u201congoing projects\u201d and \u201ccommercial projects\u201d were included in the act.\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\u00b7\" data-font=\"Symbol\" data-listid=\"2\" aria-setsize=\"-1\" data-aria-posinset=\"5\" data-aria-level=\"1\"><span data-contrast=\"none\">Second, the\u00a0<\/span><span data-contrast=\"none\">minimum limit\u00a0<\/span><span data-contrast=\"none\">for registration of projects was\u00a0<\/span><span data-contrast=\"none\">reduced\u00a0<\/span><span data-contrast=\"none\">to cover more projects<\/span><span data-contrast=\"none\">.<\/span><span data-contrast=\"none\">\u00a0<\/span><span data-contrast=\"none\">It reduced<\/span><span data-contrast=\"none\">\u00a0evasion under law.\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><b><span data-contrast=\"none\">How the Real Estate (Regulation and Development) Act (RERA) 2016 has contributed to the empowerment of consumers?<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">RERA act\u00a0<\/span><span data-contrast=\"none\">address<\/span><span data-contrast=\"none\">ed<\/span><span data-contrast=\"none\"> the existing power gap in the real estate sector between buyers and promoters<\/span><span data-contrast=\"none\">.<\/span><span data-contrast=\"none\">\u00a0<\/span><span data-contrast=\"none\">It fur<\/span><span data-contrast=\"none\">the<\/span><span data-contrast=\"none\">r<\/span><span data-contrast=\"none\">\u00a0empower<\/span><span data-contrast=\"none\">ed the<\/span><span data-contrast=\"none\">\u00a0consumers in the following ways.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">\u00a0<\/span><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li data-leveltext=\"\u00b7\" data-font=\"Symbol\" data-listid=\"3\" aria-setsize=\"-1\" data-aria-posinset=\"6\" data-aria-level=\"1\"><span data-contrast=\"none\">First, the real estate sector which was largely unregulated is now being regulated under RERA.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\u00b7\" data-font=\"Symbol\" data-listid=\"3\" aria-setsize=\"-1\" data-aria-posinset=\"7\" data-aria-level=\"1\"><span data-contrast=\"none\">Second, RERA along with demonetization and GST has reduced the use of black money in the real estate sector.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\u00b7\" data-font=\"Symbol\" data-listid=\"3\" aria-setsize=\"-1\" data-aria-posinset=\"8\" data-aria-level=\"1\"><span data-contrast=\"none\">Third,\u00a0<\/span><span data-contrast=\"none\">it<\/span><span data-contrast=\"none\">\u00a0has the mandatory rules of getting approval of competent authority for project plans.\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li data-leveltext=\"o\" data-font=\"&quot;Courier New&quot;\" data-listid=\"3\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"2\"><span data-contrast=\"none\">Also, according to the RERA act, the builder needs to register with a regulatory authority.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"o\" data-font=\"&quot;Courier New&quot;\" data-listid=\"3\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"2\"><span data-contrast=\"none\">This stringent regulation has ended the practice of selling real estate based on false advertisements.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li data-leveltext=\"\u00b7\" data-font=\"Symbol\" data-listid=\"3\" aria-setsize=\"-1\" data-aria-posinset=\"9\" data-aria-level=\"1\"><span data-contrast=\"none\">Fourth, to prevent fund diversion, Promoters are required to maintain funds of a specific project in separate bank accounts.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\u00b7\" data-font=\"Symbol\" data-listid=\"3\" aria-setsize=\"-1\" data-aria-posinset=\"10\" data-aria-level=\"1\"><span data-contrast=\"none\">Fifth, disclosure of unit sizes based on \u201ccarpet area\u201d\u00a0<\/span><span data-contrast=\"none\">has been made mandatory. It\u00a0<\/span><span data-contrast=\"none\">has reduced the scope\u00a0<\/span><span data-contrast=\"none\">for<\/span><span data-contrast=\"none\">\u00a0unfair trade practices.\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\u00b7\" data-font=\"Symbol\" data-listid=\"3\" aria-setsize=\"-1\" data-aria-posinset=\"11\" data-aria-level=\"1\"><span data-contrast=\"none\">Sixth, it promotes equity by making it mandatory for payment of \u201cequal rate of interest\u201d by the promoter or the buyer in case of default.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><b><span data-contrast=\"none\">Federal issues in its implementation<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">RERA is a product of cooperative federalism. Though the Act was introduced by the Central government, <\/span><span data-contrast=\"none\">state governments are empowered to notify\u00a0<\/span><span data-contrast=\"none\">the rules<\/span><span data-contrast=\"none\">,\u00a0<\/span><span data-contrast=\"none\">appoint regulatory authorities and the appellate tribunals<\/span><span data-contrast=\"none\">.\u00a0<\/span><span data-contrast=\"none\">Currently, RERA is notified in 34 states and Union territories.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">However,\u00a0<\/span><span data-contrast=\"none\">the act is facing implementation-related<\/span><span data-contrast=\"none\">\u00a0issues\u00a0<\/span><span data-contrast=\"none\">in some states such as Maharashtra and West Bengal.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">\u00a0<\/span><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li data-leveltext=\"\u00b7\" data-font=\"Symbol\" data-listid=\"4\" aria-setsize=\"-1\" data-aria-posinset=\"12\" data-aria-level=\"1\"><b><span data-contrast=\"none\">First,\u00a0<\/span><\/b><span data-contrast=\"none\">in the case of Maharashtra, the state enacted its own law in 2013. The law was not consumer-friendly, and it has created a disadvantageous position for homebuyers in Maharashtra.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li data-leveltext=\"o\" data-font=\"&quot;Courier New&quot;\" data-listid=\"4\" aria-setsize=\"-1\" data-aria-posinset=\"3\" data-aria-level=\"2\"><span data-contrast=\"none\">However, the center repealed the state act and enforced the RERA act 2016 for the regulation of real estate sector.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li data-leveltext=\"\u00b7\" data-font=\"Symbol\" data-listid=\"4\" aria-setsize=\"-1\" data-aria-posinset=\"13\" data-aria-level=\"1\"><b><span data-contrast=\"none\">Second,\u00a0<\/span><\/b><span data-contrast=\"none\">in the case of West Bengal, the state government ignored RERA act 2016 and enacted its own state law (the West Bengal Housing Industry Regulation Act (WBHIRA)) in 2017.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li data-leveltext=\"o\" data-font=\"&quot;Courier New&quot;\" data-listid=\"4\" aria-setsize=\"-1\" data-aria-posinset=\"4\" data-aria-level=\"2\"><span data-contrast=\"none\">Even after multiple efforts by the Centre, West Bengal refused to implement RERA.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"o\" data-font=\"&quot;Courier New&quot;\" data-listid=\"4\" aria-setsize=\"-1\" data-aria-posinset=\"5\" data-aria-level=\"2\"><span data-contrast=\"none\">Though there was a central law on the subject, Knowingly, the state government enacted WBHIRA in 2017.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"o\" data-font=\"&quot;Courier New&quot;\" data-listid=\"4\" aria-setsize=\"-1\" data-aria-posinset=\"6\" data-aria-level=\"2\"><span data-contrast=\"none\">This act of WB government is\u00a0<\/span><span data-contrast=\"none\">a\u00a0<\/span><span data-contrast=\"none\">violation of constitutional principles and has been challenged in the court.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><span data-contrast=\"none\">As SEBI is to securities market RERA will be to the real estate sector. RERA act 2016 will provide huge impetus to the growth of real estate sector while significantly contributing to the needs of Urban India.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Synopsis:\u00a0As compared to RERA 2013 act, the\u00a0Real Estate (Regulation and Development) Act (RERA) 2016 was successful in empowering the home buyers. This has reduced the incidence of unfair trade practices in the real estate sector.\u00a0 How RERA 2016 act was better than RERA 2013 act?\u00a0 The RERA 2013 act had the following issues;\u00a0 It did&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/rera-2016-protects-the-interest-of-homebuyers\/\">Continue reading <span class=\"screen-reader-text\">RERA 2016 protects the interest of Homebuyers\u00a0<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":77822,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,1243],"tags":[1460],"class_list":["post-77819","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-9-pm-daily-articles","category-act-and-schemes-new","tag-eco_11","entry"],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2021\/01\/RERA-2016-protects-the-interest-of-Homebuyers.jpg?fit=1280%2C720&ssl=1","views":{"total":0,"cached_at":1700789026,"cached_date":1701291873},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/77819","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\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=77819"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/77819\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media\/77822"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=77819"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=77819"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=77819"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}