Government Reviews RERA, Starts Homebuyer Meetings

Context

• The ministry of Union Housing and Urban Affairs is going over the RERA (Real Estate Regulation and Development) Act, 2016, the law which was passed eight years ago. This process is to initiate Government Reviews on RERA and to start Homebuyer meetings. The empowerment of the grassroots is integrated in this process through a series interaction with homebuyers and the creation of the data collection unit under the Ministry.

About RERA (Real Estate Regulation and Development)

RERA (Real Estate Regulation And Development), established by the Indian government, is a regulatory body which brings the real estate sector business under its purview. It aims to foster more openness, responsibility and effectiveness as far as the residential realty sphere is concerned, getting all the rights of house hunters. 

Through RERA, all real estate projects must be registered with a stipulated authority which also keeps a track of the time in which the project is likely to complete and the quality standards. It does so by offering arbitration and fines for breach of the laws, which in turn makes the industry more transparent to consumers leading to increased confidence.

• RERA established as an act of parliament in 2016 and came into operation in the same year, the enactment intended to usher much-required order and transparency in the real estate sector.
• The aim of RERA is mainly to safeguard home buyers in the endeavour of the rightful practice of the developers, progress of the projects on time and that the developers are accountable.
• One of the vital obligations of RERA is that the developers put their projects for registration with the regulatory body before beginning the marketing and sales process.
• RERA requires Builders / Promoters to mention proper project details as the Land Titles, Project Layout Plans, Approvals & Timelines.
• The authority penalises developers heavily in case any of their activities are detrimental to the development process. Such measures include a delay in project completion or fake data/misinformation to the home buyers.
• RERA appoints the state-level bodies on a permanent basis to perform regulation, control on the implementation of regulations and redress grievances of the homeowners.
• It ought to be a given that as the RERA was introduced there has been more transparency in the buying and selling process and homebuyers on the receiving end know exactly what they are getting into and have strong legal recourse channels for fraudulent practices.
• Therefore RERA serves to build confidence in the homebuyers and strengthen the investment inflows to the real sector which eventually translate to the growth and development of the Indian economy.

Government Initiatives on RERA

• It has been an excellent idea of the government to bring forth some initiatives in order to minimise the gap between the real estate act and its real implementation. It is called RERA, which is Real Estate Regulation and Development.
• Such programs comprise the regular undertakings of RERA reviews and assessments where the organisation seeks jurisdictions for improvement.
• The government is also in progress to organise meetings with homebuyers to take the feedback and if there are any issues related to RERA, then it will quickly and effectively respond to it.
• Besides, RERA aiming at fostering awareness is being implemented involving stakeholders, developers, interested buyers and agents.
• The government is focusing on getting a well-functioning enforcement mechanism of RERA regulations in place, which includes timely registrations of projects and proper disclosure by developers.
• Also, the government in this regard seeks mechanisms through which disputes under RERA can be expedited followed by proper and quick resolution of the disputes encountered between builders and homeowners.
• In a nutshell, these government policies should be devoted to boost up RERA’s capabilities in enforcing real estate laws, ensuring transparency, accountability, and protection of the consumers.

Conclusion and Wayforward

• The responsibility of the government to look into RERA and attending homebuyers meetings demonstrate the willingness of the public sector to improve transparency and accountability in real estate. By interacting with stakeholders and addressing the concerns, the government aims to enhance consumer belief and also to make the RERA regulations highly effective. 
• These initiatives mark a move on the path to leading to a comprehensive regulating system which would accomplish the objectives of safeguarding the rights of the home-buyers and would stimulate the growth of the real estate industry.

Source: The Indian Express

UPSC Mains Practice Question

Q.Discuss the significance of the government’s recent initiatives in reviewing the Real Estate Regulation and Development (RERA) Act, 2016, and conducting meetings with homebuyers.[250 Words]

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