The Real Estate Regulation Act (RERA) was passed by the Indian government to address the issues and grant permission for real estate property purchases in 2016. It aims to serve the real estate sector to protect buyers' interests and penalize the errant builders. It addresses the delay in the construction of the projects.
RERA tells the builders to submit the original approved plans of the ongoing projects along with the alterations, additional revenue collected, proper fund utilization, timelines, and delivery dates certified by the engineer and the accountant.
The RERA registration number is unique should ve acquired by each builder without which he cant advertise, sell or book the project. After registration, the developer should provide details of the financial statements, Legal deed, and supporting documents.
If the promoter fails to deliver in time they will have to return the agreed money along with the agreed interest rates in the contract. If the buyer doesn't take the money the promoter has to give monthly interest to the buyer.
The project details will be updated on the regulatory authority’s website and the developer constantly updates the project details and the buyer can transparently access the information. Updates will be made every 3, months, and each state is responsible for maintaining and updating details of all developers and projects onsite.
RERA also checks for the construction quality and amenities provision. The issues raised by the buyers in 5 years of possession will be addressed by the developer in 30 days or will face penalties by the RERA. The promoter should have a separate escrow account for each project and is overseen by a certified accountant. A minimum of 70% of all revenue collected from investors and buyers will be maintained here.
