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Real Estate Regulatory Authority (RERA)

Real Estate Regulatory Authority (RERA)

Real Estate Regulatory Authority (RERA)

Real Estate Regulatory Authority also known as RERA is an act for promotion and regulation of the real estate sector for the sale of apartment, plot or building in a hassle free manner. It was enacted by the Parliament in May 2016. This act basically aims to secure the interest of the buyers and protect them from fraud sellers. Each state set up the Real Estate Regulatory Authority to regulate the real estate development. The provision is applicable to both commercial and residential properties.

RERA aims to bring relief to the home buyers and the builders will be held responsible for the delivery of the projects on time and thus it develops a trust between the buyers and the sellers.

The developers need to get approval from different government authorities before launching any project and disclosure of all the details on the website is compulsory followed by which different state RERA guidelines will be set up. Any agents who violates the same will be charged with penalties or imprisonment.

Each agent will be provided with a registration number by the regulator which they have to mention in every property sale. This reduces the chance of misleading the purchaser or conducting any fraud.

Why Is RERA Important?

  • Brings transparency and accountability in real estate sector.
  • Minimizes delay and fraud in work
  • Protects the interest of buyers
  • Builds trust among the buyers and sellers

The Real Estate act makes it compulsory for all residential and commercial real estate projects where the land is over 500 square metres, to register itself with the Real Estate Regulatory Act for starting a project. This provides greater transparency in project and thus helps to complete project without much hindrances.

Any project which is ongoing and have not been certified with the completion certificate will have to seek registration within six months. Followed by which application must be either approved or rejected within the period of 30 days from the date of application by the Real Estate Regulatory Authority (RERA). On successful registration the builder or the promoter will be provided with a registration number, a login id, and password for the applicants to fill up required details on the website of RERA whereas the failure of registration would lead to penalty up to 10 per cent of the project cost or with the imprisonment of three years.

Documents Required For Registration Under RERA

Below mentioned documents needs to be put in hard copy with the application :-

  • PAN Card of the builder
  • ITR of last 3 years and balance sheet of the builder
  • Declaration by the builder of having legal title of land
  • Details of the land
  • Details of the project
  • Ownership documents
  • Details of individuals involved

RERA Act in different states

It has been two years since the RERA Act was passed and at present, more than 22 Indian states and 6 Union territories follow it. Its implementation has resulted in solving disputes and complaints in each state.

As of 13 July 2019, many states like Arunachal Pradesh, Meghalaya, Sikkim and Nagaland did not notify the RERA Rules. In such states RERA is facing certain constitutional challenges because land in the mentioned states are community owned. West Bengal follows a similar law called the West Bengal Housing Industry Regulatory Act, 2017 (WBHRA).

West Bengal Housing Industry Regulatory Act (WBHIRA), 2017

Meanwhile, when the Central Government introduced the Real Estate Regulatory Act, 2016 and encouraged all the states to follow the new set of rules, the Government of West Bengal followed a different set of rules and introduced West Bengal Housing Industry Regulation Act (WBHIRA)

The Housing Industry Regulatory Authority is mentioned under Section 20 of West Bengal Housing Industry Regulatory Act, 2017 which was introduced on October 17, 2017 and came into effect on June 1, 2018.

It aims to regulate and promote the real estate sector in a hassle free manner and establish a mechanism of speedy dispute redressal.

Process to File Dispute Under RERA Act

Step 1: In case you want to file a complaint with the authority, first of all, you have to visit the state’s official website. There, you need to search for the page where you can register your complaint.

Step 2: After that, you have to click on the complaint registration link. Following that, you will be redirected to the complaint form and you need to fill the details of your complaint.

Step 3: While filing your complaint, as a home buyer, you might be asked to submit your personal details such as name, address, contact details etc. Some supporting documents could also be attached while filing the complaint.

Step 4: Once you’ve completely filled the form as a complainant, you need to pay an amount for filing the complaint. You can even opt for online payment.

Following these steps can help you to file a dispute under RERA act.

Posted On : September 9, 2020

Written By :
Neha Roy

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