RERA
- ECONOMY
News:
Has RERA served its
purpose
Real
Estate (Regulation and Development) Act (RERA):
●
It is an act passed by the Indian
Parliament in 2016 for the regulation and promotion of the real estate sector
in the country.
Salient
Features:
●
It establishes a Real Estate Regulatory Authority (RERA) in every state to regulate
the real estate sector and serve as the adjudication body to enable quick
resolutions.
●
The act applies to all under-construction projects with a plot size above 500 sq. m or
projects with 8 apartments or more;
Salient
Provisions:
●
Establishment of a fast-track mechanism for settlement of disputes. This will be done
via an appellate tribunal and dedicated adjudicating officers.
●
All
real estate projects must be registered with RERA
so that the authority will have jurisdiction over the projects.
●
In case a promoter wishes to transfer or
assign a majority of your rights and liabilities in a real estate project to a
third party, written consent from two-thirds of the allottees will be needed in
addition to the written approval of RERA.
●
If a person has any problems regarding
violation of the provisions or rules of this Act by a promoter, buyer, or
agent, they can file a complaint with RERA.
●
While an enquiry is taking place, RERA can
stop an agent, promoter, or buyer from continuing any activity against which a
complaint has been raised.
●
If any of RERA’s decisions regarding a
complaint is not satisfactory, the aggrieved party can submit an appeal before
the Appellate Tribunal.
Offences
and Penalties:
●
If the promoter fails to follow RERA’s
orders, they will have to pay a penalty. This amount could be up to 5% of the evaluated cost of the property.
●
If the Appellate Tribunal’s orders are not
complied with, a penalty will have to be paid. This can either be imprisonment for up to 3 years or a fine (up
to 10% of the approximate cost of the project), or both.
●
If a company commits an offence under this
ACT, any person who was in charge of the business at the time of the offence
being committed and the company will be held guilty and will be punished.
Jurisdiction
of Courts:
●
No
civil court will have any jurisdiction with respect to any
matter that comes under RERA or the Appellate Tribunal’s jurisdiction.
●
As such, no court can grant an injunction
with regard to any action taken by RERA or the Tribunal.