Keeping in mind the rapid growth process in the real estate sector and its contribution to Indian Economy the Government introduced the Real Estate Regulation Act (RERA). Their aim was to provide world-class facilities to its citizens by providing a home for all, developing smart cities and making advancements in the infrastructure sector.
The growth in real estate has been resulting in the increase of disposable incomes and hence, the market for real estate in the country. But with the continuous progress in this sector, the people (buyers) have been facing some issues when investing in the property due to the immoral and unethical practices across the country.
Issues such as lack of transparency and accountability of actions of developers affect buyers. Sometimes the problem is on the part of builders, but sometimes it is just due to the delays in the project approvals and dispute resolution that the demand of the buyers and industry is not fulfilled.
This issue called for a reform and supervised real estate sector. The government, therefore, started the process of Real Estate Regulation Act (RERA).
Commencement of Real Estate Regulation Act
The whole process of RERA began with the introduction of Real Estate Regulation Bill by United Progressive Alliance (UPA) in 2013.
- 9 September 2013 – the bill was referred to the standing committee on Urban Development for examination.
- 8 October 2013 – the standing committee heard the briefing of the Ministry of Housing and Urban Poverty Alleviation.
- 6 November 2013 to 12 December 2013 – the standing committee heard all the views of some of the NGOs working in the real estate sector.
- 12 February 2014 – after hearing all the parties and having public opinion the standing committee prepared its report
- 13 February 2014 – committee submitted
- 7 April 2015 – under the chairmanship of Prime Minister, Mr. Narendra Modi, the Union Cabinet gave its approval to the amendments in the Bill
- 6 May 2015 – the Bill was introduced in the Rajya Sabha and then directed it to the standing committee containing 21 members of Rajya Sabha.
- 3 July 2015 – the Select Committee held 17 sittings to examine the bill
- 30 July 2015 – the committee submitted its report to the Rajya Sabha
- 10 December 2015 – the Cabinet accepted 20 major amendments to the Bill
- 10 March 2016 – finally Rajya Sabha passed the bill
- 15 March 2016 – the Lok Sabha passed the Bill, and it received the assent of the President
- 1 May 2016 – the Real Estate Regulation (and Development) Act (RERA) came into force with 59 of 92 sections
- 1 May 2017 – the remaining provisions came into force
It took a little time for the Act to come into effect but once implemented, it can transform the look of Real Estate Sector in India. It is a reform in the real estate sector that will help the government to strengthen the Indian Economy as well as protect its citizens.
The Act covers a broad range of issues in real estate market such as the launch of a project to post sales problems of buildings, apartments, flats, plots, offices, shops and other such properties.