RERA or The Real Estate Regulation and development Act 2016 was passed by the Indian parliament in March 2016 with an aim to bring in transparency in the Real Estate sector and protect the consumer who are the main victim of the Builder - Neta - Authority Nexus.
The Details of the Act you can easily find online, but here the objective is to let you know what is the status of the act Vis-a vis State and the UTs and where the Act stand as of now.
As of today only 13 states have notified RERA and it migh take another few months before it becomes a reality across the country.
Some of the important points of the bill are as follows:-
1. RERA covers all projects with minimum plot size of 500 sq M or Eight Apartments.
2.In order to prevent diversions of funds 70% of the money collected by the Builder would be deposited in a separate Account.
3.Now no Builder can avoid refund for Years but he will have to refund within 45 days in case of cancellation and also have to pay equal penalty in case of delay of projects.
4.All ongoing projects and new projects shall be registered by Builder with RERA within 3 months i.e by the end of July.
Though there has been states which have diluted some provisions like related to ongoing projects but still in the long run this regualtor would be very beneficial for the sector. It will segregate the serious players in the buisness with the Black Sheeps. This will help in building confidence of the investor and the end user to the sector which will result in greater capital inflow in the business.
Flying Shark.
The Details of the Act you can easily find online, but here the objective is to let you know what is the status of the act Vis-a vis State and the UTs and where the Act stand as of now.
As of today only 13 states have notified RERA and it migh take another few months before it becomes a reality across the country.
Some of the important points of the bill are as follows:-
1. RERA covers all projects with minimum plot size of 500 sq M or Eight Apartments.
2.In order to prevent diversions of funds 70% of the money collected by the Builder would be deposited in a separate Account.
3.Now no Builder can avoid refund for Years but he will have to refund within 45 days in case of cancellation and also have to pay equal penalty in case of delay of projects.
4.All ongoing projects and new projects shall be registered by Builder with RERA within 3 months i.e by the end of July.
Though there has been states which have diluted some provisions like related to ongoing projects but still in the long run this regualtor would be very beneficial for the sector. It will segregate the serious players in the buisness with the Black Sheeps. This will help in building confidence of the investor and the end user to the sector which will result in greater capital inflow in the business.
Flying Shark.
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