The Real Estate (Regulation and Development) Act, 2016 (RERA) was enacted on March 10, 2016, and came into force on May 1, 2017, to bring transparency, accountability, and efficiency to India's real estate sector, which was plagued by delays, fraud, and unfair practices. The law was introduced in response to long-standing demands from homebuyers for protection against exploitation by builders and developers. RERA aligns with the government's vision of "Housing for All" and aims to restore confidence in the real estate market by establishing a regulatory framework.
Key Provisions Include:
Mandatory registration of real estate projects and agents with state-level Real Estate Regulatory Authorities (RERAs) to ensure compliance.
Deposit of 70% of project funds in escrow accounts to prevent fund diversion and ensure timely completion.
Clear definitions of carpet area, prohibiting misleading advertisements and unfair terms in buyer agreements.
Compensation for delays—builders must pay homebuyers interest for project delays, while buyers face penalties for defaulting on payments.
Fast-track dispute resolution through dedicated Real Estate Appellate Tribunals (REATs).
RERA has significantly reduced malpractices, empowered homebuyers, and promoted fair play in the real estate sector, making it one of India’s most transformative consumer protection laws.