Property transactions in India are set to become more transparent and safe. Besides the various regulations on Benami transactions, the government has also now reintroduced RERA.
The RERA (Real Estate Regulatory Act), 2016 is an act established for promotion and regulation of the real estate sector. It was announced last year (2016) by the government but finally came into effect on 1 May 2017. It was declared with the intention of protecting the interest of the consumers as well as bring about accountability and transparency in the realty sector.
To eradicate the common practice where a consumer gets cheated by the developers, face delay in receiving the property, etc. the Act was set up to speed up the adjudicating mechanism with respect to these issues.
The principal objective of RERA is to create a corruption free system that is favourable for both the parties involved, i.e. the buyers and builders/developers. Customer’s satisfaction is the top most priority of the Act.
Other than this, the objectives of the RERA are as follows:
- To ensure fair-play.
- To offer a well-organized and transparent procedure of selling any real estate project.
- To maintain equality and similarity of information between the buyer and the builder.
- To ensure professionalism.
- To impose certain responsibilities on both the counterparties.
Under this Act, an Appellate Tribunal has been instituted to address the appeals after the judgment has been passed by the adjudicating officer and the Real Estate Regulatory Authority.
The Tribunal is supposed to have the same power as a civil court, such as:
- To ensure maintenance of books of accounts and all the other records.
- To insist on and summon the individuals and question them under oath
- To order the cross-examination of witnesses and documents
- To redeem penalty, compensation or interest from the agents.
RERA is a positive step taken in an attempt to lead the economy of the country forward towards a corruption free and transparent system. The Act is a reform in itself and along with it steps such as the implementation of GST, demonetization, and declaration of Benami ownership of property are providing aid in making it possible to have a well-organised, clean and efficient system.