Experts say RERA has brought discipline in the real estate sector, but it needs to be strengthened

Four and a half years after the Real Estate Regulatory and Development Act came into force, Maharashtra is leading the country in terms of registered projects. However, experts say that this Act, which has brought discipline in the real estate sector, needs more strength and manpower to plug its loopholes.

An analysis by Anarock, a real estate consultancy firm, showed that 71,307 projects have been registered with the regulator across the country. Maharashtra has reported the highest registration with 31,664 projects, followed by Gujarat (9,272) and Karnataka (4,497) respectively.

In terms of grievance redressal of home buyers, 78,903 cases have been disposed of by various State and Union Territory (UT) regulatory authorities so far. Uttar Pradesh and Haryana have settled the maximum number of cases, accounting for about 61% of the total disposed cases. As per the latest progress report released by the Ministry of Housing and Urban Affairs, 30,990 cases have been disposed of in UP and around 16,864 cases have been disposed in Haryana.

The report states that except Nagaland, all states have notified rules under the RERA Act; The northeastern state is in the process of doing so.

30 states and union territories have set up their own Real Estate Regulatory Authorities (RERAs), of which Jammu and Kashmir, Ladakh, Meghalaya, Sikkim and West Bengal have notified their rules but are yet to establish their own. Huh. In addition, 28 states have set up appellate tribunals with Arunachal Pradesh, Jammu and Kashmir, Ladakh, Meghalaya, Mizoram, Sikkim and West Bengal in the process of setting it up.

Commenting on the loopholes in the law, Prakash Thakur, head of Anarock’s research team, said that shortage of human resource is one of the major concerns for the authority. He said that the Act provides for regular updating of sales reports and project reports, but this happens very rarely. Besides, the authority does not have an efficient way to verify the documents, which are uploaded on the website by the realtors, he said. Thakur said that the mere regulatory nature of the authority leaves a gap in the implementation of the orders of RERA.

Both Thakur and Anuj Puri, chairman of Anarock Group, were quick to point out that the judiciary had stepped in to address some of the loopholes felt in the Act. Recently, the Supreme Court upheld the jurisdiction of the Real Estate (Regulation and Development) Act, 2016 over all realty projects which were ongoing and had not received completion certificate till the law came into force. This means that states that had diluted provisions and did not include many under-construction projects under the ambit of RERA are now expected to do so.

As a result, we may see an increase in the number of residential projects in the times to come,” said Puri. “Many developers with projects under construction outside RERA had focused their resources on projects that came under its purview. There is no alternative. The number of heavily delayed and even stalled units is likely to be low. As of July 2021, around 6.29 lakh housing units launched in or before 2014 were either incomplete or There were halts in the top seven cities,” he said.