Page 45 - Banking Finance November 2017

ARTICLE

RERA: A BOON

FOR

HOMEBUYERS

T he real estate sector got its own regulator from estate industry. The bill was passed by RajyaSabha on 10

May 1, 2017 the date when the Real Estate
March 2016 and by the LokSabha on 15 March 2016. The
Act came into force from 1 May 2016 with 59 out of 92
(Regulation and Development) Act, 2016 (RERA)
became effective in the entire country. Each
state and Union territories will have its own Regulatory sections notified. Remaining provisions came into effect
from May 2017.
Authority which will frame regulation and rules according
to the Act. RERA is expected to bring clarity and fair prac- According to RERA, each state and Union territory has its
tices that would protect the interest of buyers and also own regulator and set of rules to govern the functioning of
impose penalties on errant builders. the regulator. Centre has drafted the rules for Union Terri-
tories including the national capital.
What is RERA? What was the need for a regulatory law for the real estate?
The Real Estate (Regulation and Development) Act, 2016 is The real estate sector has grown in the recent years but
an Act of the Parliament of India which seeks to protect has largely been unregulated from the perspective of con-
home-buyers as well as help boost investment in the real sumer protection. Though, consumer protection laws are
available, the recourse available therein is only curative, but
About the author not preventive. This has affected the overall potential
growth of the sector due to absence of transparency and
Vishvajeet Kumar
Chief Manager (Faculty) standardization.
Union Bank of India
Staff Training College Provisions under RERA
Bangalore
RERA is expected to bring the much-needed relief to

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