REAL ESTATE REGULATION ACT,2016

INTRODUCTION

Housing is one of the necessities of life. A roof over one’s head is a dream for all. Despite it being a necessity for life we still find that it has become quite difficult for people to buy a house. Housing falls under the facet of real estate. Real estate accounts for most of the GDP of the country. Also, it employs many people such as laborers, female skilled or unskilled workers, etc. Despite being one of the most important sectors of the economy it had failed its regulation until the introduction of the Real Estate Regulation Act of 2016. The Real Estate Regulation Act is one of the important acts brought considering the need for regulation in this sector. Not only this, but this act also provides for certain redressals for the buyers who feel their rights have been violated by the contractor or the builder. It also mentions certain duties of the buyer and lists down the provisions that can be approached by the customers when there is a violation. The act has overall also set up judicial precedents that act as law for future cases. Additionally, after the introduction of this act in the year 2016, it has made regulation far easier and has protected the rights of people. The act filled the trust gap that existed before.

THE REAL ESTATE REGULATION ACT 2016

Before the upcoming of the RERA Act 2016, the Indian real estate sector was unregulated leading to discrepancies and exploitation of customers and buyers either through their contractors or through their agents. This led to a lot of complaints and violations of the rights of buyers regarding the same. Thus, there comes the need for the act to get itself introduced. The RERA Act was introduced in the year 2016^[1] by the legislative assembly led by the union. The act covered all provisions regarding the protection of buyers from exploitative approaches of real estate agents or builders. Since the Consumer Protection Act’s ambit did not fall under it, this again leads to the need for the RERA Act. The act has a lot of significance that can be measured through its accountability, accessibility, and redressal forums available for those whose rights are violated.

PROVISIONS

It is quite important to understand some of the key provisions of the act to easily understand it.

1. FAIRNESS^[2]– The Real Estate Regulation Act of 2016 has enhanced fairness among buyers and sellers. This has allowed a clear transaction of payments and understanding between the buyer and the seller. Also, the process of making the payment has become fair, and through this, the customers are no longer exploited.
2. TRANSPARENCY^[3]– The main purpose of this act is to provide a sense of transparency to the customers. This is so because they have been exploited for a long time. To fulfill this, the RERA Act has made the process easier. Transparency has been found in the payment process and extra charges by sellers. This ensures the fact that the contractors through any means do not exploit the buyers by demanding extra contract charges or any intermediary charges and asking for more period for the construction of their estate. 
3. DELAY IN POSSESSION- This is most commonly seen whenever a real estate agent or contractor is employed for construction or the possession of an estate like flats, apartments, etc. This can be explained through an example- A employs an agent or a constructor named B to construct a flat for A. The period in which the possession would be transferred was promised to be within 1 year. However, after 1 year the contractor delayed the time for more than 3 months, this is a way where the rights of the buyer are violated. Now, this can be addressed under the Real Estate Regulation Act, of 2016.  
4. PUNISHMENT– The punishment for violating rights either by misrepresenting, manipulating, or delaying possession. The punishment under the RERA Act, 2016 is up to 3 years depending upon the crime. It also mentions in one of its provisions that 10 percent of the cost will be given by the contractor. 
5. MANDATORY REGISTRATION FOR ALL AGENTS- The Real Estate Regulation Act states that every real estate agent should get registered to ensure authentication so that the buyer approaches the right one. 

CASE LAWS

• Geetanjali Aman Constructions v. Hrishikesh Ramesh Paranjpe^[4]

The main contention of this case was section 3 of the RERA Act. The case was about whether there is a mandatory registration for all contractors and whether registration is required for the land that needs to be brought. The court upheld the validity of section 3 of the Real Estate Regulation Act stating that registration is mandatory. Also, the court said that the developer needs to register within 1 month.

• Mr. Jatin Mavani v. M/s. Rare Township Pvt. Ltd, 2018^[5]

In this case, there were several RERA Act filings under one name, complaining that the developer did not give the possession on time as well as proper amount was paid to him on time resulting in a violation. The contentions of the petitioners under the Maharashtra RERA Act were that late fees should be given to the petitioners and the principal given should be returned. The court of law held and ruled in favor of the defendant mentioning that the remedy given to him was already exhausted because they had already filed several complainants in the same court.

CONCLUSION

The introduction of the RERA Act in 2016 has changed the dynamics of Indian real estate. It has become more accountable, transparent, and accessible for all. Additionally, one can access all the data of the agent, seller, or developer under one umbrella paving the way for a transparent process. The act has enhanced the rights of the buyers and made the sellers, constructors, or developers more responsible towards the buyers.

Reference(s):

[1] Deep Patel, Sameer Gujar and Vivek Patel, ‘Review and Analysis of RERA Act’ 9 International Journal of Engineering Research & Technology

[2] ——, ‘FEATURES, BENEFITS, IMPACT, AND KEY PROVISIONS OF REAL ESTATE  REGULATORY AUTHORITY (RERA) ACT 2016’ 13 Vidyabharati International Interdisciplinary Research Journal

[3] Deep Patel, Sameer Gujar and Vivek Patel, ‘Review and Analysis of RERA Act’ 9 International Journal of Engineering Research & Technology

[4] Geetanjali Aman Constructions v Hrishikesh Ramesh Paranjpe (Maharashtra real estate appellate tribunal)

[5] Mr. Jatin Mavani v M/s Rare Township Pvt Ltd, 2018 (Maharashtra real estate appellate tribunal)