Thousands of flat buyers in Delhi-NCR are still waiting for their dream homes. Despite years of waiting, their dreams remain unfulfilled. When RERA, the Real Estate Regulatory Authority, was introduced, it promised to curb builder malpractices. Yet, many homebuyers in Delhi-NCR are still waiting for their houses. Here's a brief overview of what RERA stands for.
What is RERA?
The Real Estate Regulatory Authority (RERA) was introduced to curtail builder malpractices and fraud. Before 2016, the real estate sector was largely unregulated, and buyers faced numerous challenges. The government introduced this law in 2016 to safeguard buyers' interests. RERA regulates real estate projects, ensuring transparency, accountability, and efficiency while protecting the interests of both buyers and developers. If a property buyer is wronged, they can file a complaint with RERA.
Every state has its RERA authority that regulates real estate projects. Builders must submit original documents for all started projects, and they can't alter plans without buyer consent. The law mandates that builders obtain project approvals in advance, bringing transparency on record, so buyers can make informed decisions.
Benefits of RERA
Prospective buyers can find detailed project information on the RERA website. One advantage is the requirement for builders to disclose carpet area. Previously, buyers purchasing a 3,000 square feet flat often found deductions in super and built-up areas. With the new law, they receive the full carpet area. RERA also provides a significant safety net, allowing buyers to cancel bookings if needed.
Read more about Mahagun Montagge Project Issues
Why Do People Complain About RERA?
NEFOWA (Noida Extension Flat Owner Welfare Association) has been advocating for flat buyers' rights for years. Dipankar, NEFOWA's Vice President, highlights that while RERA brought transparency, it hasn't significantly benefited Uttar Pradesh. RERA issues orders but lacks enforcement power, often making recovery slow and justice elusive. Buyers frequently find themselves in prolonged court battles. RERA needs judicial authority.
Source: aajtak
Ex-VP Manish Kumar describes RERA as a toothless tiger — powerful in theory but with no enforcement ability. Builders flout orders knowing RERA can't act. When Manish purchased a flat and faced issues, he approached RERA in 2018. Though they ordered the builder in 2019, compliance never occurred due to delays and even penalties yielded no results. RERA needs to enforce timely order compliance.
Builders’ negligence has frustrated thousands in Noida. The Rudra Palace Heights project launched 15 years ago, yet keys remain elusive. Despite efforts, buyers claim no assistance from RERA, leaving dreams unrealized. Reports note only 10% recovery from defaulting builders includes Rudra.
Builder Intimidation Over RERA Complaints
Some buyers allege builder retaliation following RERA complaints, with threats of booking cancellations. Rahul Tandon, a buyer at Mahagun Montagge, shared that his situation worsened post-complaint, facing cancellation threats from builders.
Another buyer, Saurabh, reported project delays leading him to RERA. Although RERA announced penalties for the builder, disputes escalated with sudden payment demands of 22 lakh after initiating a case with RERA.
Source: aajtak
Legal Perspectives on RERA
Supreme Court advocate Kumar Mihir noted that RERA came into effect in 2016 with rules established in 2017. Projects before 2016 aren't bound by RERA, though incomplete ones were to register. Insolvent companies fall under IBC's Section 14, preventing proceedings against them, limiting RERA's intervention. High Court and Supreme Court cases also fall outside RERA's jurisdiction.
Mihir further mentioned RERA compensation for project delays, often issuing recovery certificates for DM enforcement. Builders facing such certificates often secure court stays, halting recovery. RERA, however, aids newer projects significantly.
Despite RERA's nine-year implementation, many see little more than a paper tiger. Today, numerous projects in Delhi-NCR remain stalled or sluggish, eroding faith in RERA.
