Homebuyers Demand Action as RERA Faces Scrutiny

Government is poised to review the Real Estate (Regulation & Development) Act of 2016, responding to ongoing challenges faced by homebuyers & the apparent inefficacy of Real Estate Regulatory Authorities across states & UTs. The Ministry of Housing & Urban Affairs has initiated discussions to address these concerns, following a recent meeting with homebuyers.

Data Collection to Identify Shortcomings

In a bid to understand the issues better, MoHUA has requested detailed data from all 32 RERAs regarding the number of orders passed and their implementation status. Senior officials noted that the data will help illuminate the reasons behind non-implementation of certain orders, which has prompted RERAs to call for amendments to the Act that would enhance their enforcement capabilities.

As per experts, RERAs have highlighted the need for amendments due to persistent delays & the non-implementation of orders, which undermine the original objectives of the Act. A comprehensive assessment is expected to follow the data collection, guiding potential changes to the legislation.

Criticism from Homebuyers & the Judiciary

RERAs, which were established to regulate the real estate sector & facilitate timely dispute resolution, have faced mounting criticism from both homebuyers & the judiciary. Recently, the Supreme Court remarked that these authorities have turned into “rehabilitation centres” for former bureaucrats, effectively frustrating the very purpose of the Act.

Homebuyer associations have frequently pointed to the inefficient functioning of RERAs, asserting that many authorities lack the capability to enforce compliance among real estate developers, leaving homebuyers without necessary recourse.

Challenges in Enforcement

Activist groups have raised alarms over the failure of RERAs to enforce orders effectively. Misleading advertisements by developers & inconsistent information on RERA portals have further compounded the issue. The inability of regulatory authorities to implement recovery orders has left many homebuyers in precarious situations.

Former UP RERA member emphasized that the Act’s current framework limits RERAs’ power, necessitating enforcement through state agencies. Past requests for amendments aimed at granting RERAs greater authority have gone unaddressed, highlighting a significant gap in regulatory power.

Looking Ahead

As the Ministry of Housing continues to gather insights from stakeholders, the potential for significant amendments to the Real Estate (Regulation & Development) Act looms. This development could mark a turning point for homebuyers who have long sought effective mechanisms for redressal in a challenging real estate landscape. Ministry’s response to the ongoing inquiries will be pivotal in determining the future direction of this crucial legislation.