IMPACT OF RERA 2016 AND ITS RAMIFICATIONS – A CONSUMER-CENTRIC ANALYSIS

This paper examines the strengths and weaknesses of the recently-introduced Real Estate (Regulation and Development) Act, 2016 (RERA in short). In essence, the object of this “one nationwide” Act is to bring more harmony into the “home-buying” ecosystem. Boosting the sector’s economy and enticing more Foreign Direct Investments into the same are also included. From the outset, RERA would bring more transparency into the purchasing process. Developer-promoters will be under more scrutiny with regards to financial management, as well as their deliverance of the end product. That said, for any new law to be effective and sustainable, effective policing and timely enforcement must work in tandem. The concerns here include: Would mere compliance be good enough to eradicate on-going issues? Under what condition would regulators step in to act on their own cognizance? Are there minimum standard stipulated to trigger a “red flag” and act suo motu? Does the individual state have the financial capacity to deploy the manpower to contain compliance standards? What if developer-promoters re-strategized to circumvent the Act? Are there any contingency plan? Apparently, information of such remains unclear. This paper would attempt to go beyond the limits of this Act. A global-centric perspective would be presented. And to facilitate more multi-dimensional discussions, it will be presented in a succinct format. An out-of-the-box thinking is adopted. To disclaim, the recommendations suggested are not exhaustive but only to serve as a primer to stimulate “expanded” thinking and hence, deriving more sustainable solutions going forward