The Real Estate Regulatory Authority Act, 2016 (hereinafter referred to as RERA Act) intends to provide efficiency and transparency to the real estate market, with one of the key priorities being to defend the interests of purchasers in the real estate sector. Prior to the implementation of this legislation, it was common practice for the builder to fail to hand over ownership of the unit to the buyers, even after a lengthy delay on their part. Though there were redressal mechanisms, they were inefficient and took an inordinate amount of time.
Section 18 of the RERA Act requires the builder or promoter to refund/return the amount along with the compensation to the buyer if the promoter fails to provide possession of the unit or fails to discharge any other obligation mentioned in the act or the rules and regulations made thereunder.
The government formed it to oversee or monitor the operation of the real estate sector/industry. The government’s major goal in enacting this Act is to make property purchasing and selling more accessible and transparent for both parties involved.
This authority mandates builders and promoters to provide all necessary project information. Furthermore, every agent in the real estate market is required to register themselves and their projects with the right authorities. The RERA Authority’s primary duty is to provide purchasers with relief by rapidly settling disputes. The Authority is also in charge of enforcing accountability and openness in the business.
Every state’s government was expected to establish a RERA Authority within one year of the RERA Act’s adoption in 2016. Furthermore, the RERA Act outlines all of the RERA Authority’s responsibilities and activities. The Indian government has the ability to set up one or more RERA Authorities in each state or territory.
RERA’s authority is also a Body Corporate. That is, it has the traits of common closure and unbroken succession. This Body may also own, purchase, and sell permanent and mobile property, as well as engage in contracts.
Within one year of the date of implementation of the RERA Act, each state government shall establish the Real Estate Regulatory Authority to exercise the power granted and execute the duty assigned to it by this act. The state or territory government may potentially establish more than one Real Estate Regulatory Authority.
Until RERA is established, the State Government shall appoint any Regulatory Authority (GDA, GNDA, DDA) or any individual, preferably the Secretary of the Housing Department, as the regulatory authority for the purposes of this act.
Function Of RERA Authority
- Preserving promoters’ databases: One of the key functions of the authority is to preserve or store all of the projects’ databases on their website. It contains proof and images of the promoters or projects whose licenses were revoked or prohibited.
- Regulation: The primary function of the regulatory authority. The authority to list and manage real estate agents and different real estate developments.
- Keeping Records: The authority shall issue and keep project records for public inspection. It must also keep track of the real estate brokers.
- Ensure Compliance: The authority should make certain that all obligations placed on builders, property allottees, and estate agents are satisfied. It must also guarantee that all of its rules and regulations are observed.
- Regulations must be rebuilt: A RERA Authority must restore the rules and regulations that govern each region under its control. It may also stipulate the fees payable to allottees, promoters, and real estate brokers.
Power Of Real Estate Regulatory Authority
- The authority has the power to call for any information and also has the power to conduct investigations into the affairs of any promoter or any agent or any allottee and they can examine their books of accounts records and documents.
- Authority has all the power which are vested in the Civil Court under CPC, during the examination of any suits.
- It has the power to issue necessary directions to any agent promoters or allottees for the purpose of discharging its function.
- Authority can issue any interim orders during any inquiry to restrain any Promoter or real estate agent or allottee from carrying out such Act which is in contravention to the provision of this Act.
- Authority can also impose penalty or interest on any promoter or real estate agent or on allottee for doing any act which is in contravention to the provision of this code.
- It can also rectify or amend any of its orders within the time period of 2 years for any mistake apparent from the record.
Types of Forums under RERA:
- RERA Authority: The government formed it to oversee or monitor the operation of the real estate sector/industry. The RERA Authority’s primary duty is to provide purchasers with relief by rapidly settling disputes. The Authority is also in charge of enforcing accountability and openness in the business.
- RERA Adjudicating Officer(AO): AO is appointed by the Central Government to exercise jurisdiction, power, and authority conferred by or under the Act.
AO has also the following power to award remedy:
- AO can grant compensation for structural defects or any other defect as may be deemed fit.
- AO can award a refund along with interest for delay in providing possession and for false advertisement.
- He/she can grant compensation for the alteration in the original plan without the consent of the buyer.
The factor while granting compensation
While granting the amount of compensation or compensation along with interest the Adjudicating Officer shall consider the following points:
- Amount of loss caused
- Nature of default/repetitive
- Amount of disproportionate gain or unfair advantage
- Any other factors as may be deemed fit
- RERA Appellate Tribunal: The Appellate Tribunal can overturn any order or decision made by the RERA Authority or an adjudicating official. The Appellate Tribunal may also request records relevant to the disposition of such an appeal. If RERA rules in favor of the builder, you have 60 days from the date of the ruling to submit an appeal with the RERA Appellate Tribunal. The filing of an appeal against a RERA ruling is addressed under Section 44 of the Real Estate (Regulation and Development) Act 2016 (RERA). Anyone who is dissatisfied with an order issued by the RERA Authority or the RERA Adjudicating Officer may submit an appeal with the corresponding State RERA Tribunal and file the Appeal in Form L.
The following points can also be taken into consideration:
- The applicant or appellant may attend in person or appoint one or more practicing CAs, CSs, CMAs, or Advocates, or any of their officers, to submit his or her case before the Adjudicating Officer.
- No civil court shall have jurisdiction to hear any suit or process in relation to any subject over which the Adjudicating officer, RERA Authority, or RERA Appellate Tribunal is competent to determine by or under this Act.
- No injunction or stay of execution shall be given by any court or other authority in respect of any action taken or to be taken in the exercise of any power conferred by or under this Act.