25 May 2025The Indian real estate sector has long been plagued by delays, misinformation, and lack of accountability. For decades, homebuyers were at the mercy of developers with little legal recourse. This changed significantly with the introduction of the Real Estate (Regulation and Development) Act, 2016, commonly known as RERA. Designed to bring transparency, efficiency, and fairness to the industry, RERA has proven to be a game-changer for Indian homebuyers.
Before RERA, buyers often had limited access to accurate project information. Developers could make tall claims about timelines, amenities, and approvals without any checks. RERA now mandates developers to register their projects with the respective state authorities before advertising or selling. They must also upload project details—such as layout plans, approvals, construction status, and delivery timelines—on the official RERA portal. This means buyers can now make informed decisions based on verified information.
Delayed possession was one of the most common grievances among homebuyers. RERA addresses this by imposing strict penalties on developers for failing to deliver projects on time. Builders are now legally bound to adhere to the timelines promised at the time of registration. If delays occur, buyers are entitled to compensation or even a full refund with interest.
RERA mandates that 70% of the funds collected from buyers must be deposited in a separate escrow account. This ensures that the money is used only for the construction of that specific project, preventing diversion of funds to other developments. This clause alone has significantly improved financial discipline among developers and reduced the risk of stalled projects.
Ambiguous clauses and one-sided agreements were common pre-RERA. The Act has brought in a model agreement that outlines the rights and responsibilities of both buyers and developers in a balanced manner. This reduces the scope for legal manipulation and ensures fair treatment for buyers.
RERA has set up dedicated appellate tribunals to handle complaints related to real estate transactions. These bodies are required to resolve disputes within 60 days, offering a much faster resolution compared to conventional courts. This has empowered homebuyers to stand up against unethical practices without long legal battles.
The Act has provisions for strict penalties, including imprisonment, for non-compliant developers. This has significantly increased accountability in the sector. Developers are now more cautious and committed to ethical practices, knowing that non-compliance can have serious consequences.
Perhaps the most transformative impact of RERA has been the restoration of buyer confidence. With legal backing, transparent processes, and access to credible information, homebuyers are now more willing to invest in real estate. This has contributed to a more stable and trustworthy property market in India.
RERA has undoubtedly ushered in a new era for the Indian real estate sector. While challenges in implementation still exist—especially in states with weaker enforcement—the overall direction is positive. For the first time in decades, Indian homebuyers have a powerful ally in the form of legislation that protects their rights and interests.
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