Homebuyers want more from RERA
When the Central government brought in a law to regulate the real estate sector in 2016, homebuyers were truly on cloud nine. The Real Estate (Regulation and Development) Act, popularly known as the RERA and supported by regulatory authorities at the state level, was supposed to herald transparency and accountability in the sector mired in myriad issues. Delayed project execution and delivery, mismanagement and misappropriation of funds, the list was endless. Five years under the new regulatory regime tell us that we have had some success. Some homebuyers got justice through a few landmark verdicts, but many others continue to wait indefinitely after their cases got dragged to other courts. Many unscrupulous promoters have been weeded out, but delay and cheating-related issues continue unabated. The very fact that over 60,000 real estate projects were registered under RERA across the country as of January 2021 shows buyers have been cautious before committing their life savings.
A recent judgment by the Tamil Nadu Real Estate Regulatory Authority (TN RERA) has given life to the dreams of nearly 700 homebuyers in Coimbatore. It has appointed a committee to execute sale deeds for undivided share/plots in favour of buyers who had booked flats and villas in a Sahara Group housing project, years after the execution of the mega real estate project ground to a halt. A recent Supreme Court judgment suggested some changes in RERA to protect the interests of homebuyers. The ruling has reiterated the jurisdiction of the Act on all projects that were ongoing when the law was enacted. Many states that diluted the provisions under the Act may now have to amend the regulations to ensure that all ongoing projects get covered under it. The apex court has also made it mandatory for developers to deposit at least 30% of the penalty ordered by the regulator before they challenge any RERA order.
In the post-pandemic world, when the sector is undergoing a lot of funding problems, homebuyers are a worried lot. For many, RERA provides some comfort. A tighter regime will help the sector as a whole.