Real Estate Regulatory Authorities (RERA) of various states and Union Territories (UTs) resolved 1,24,947 consumer cases as of July 1, 2024, as per the Economic Survey 2023-24. The survey also noted that, except for Nagaland, all other states and UTs in India have implemented regulations under the Real Estate (Regulation and Development) Act, 2016. Nagaland is currently in the process of finalising its regulations. As of July 1, 2024, more than 1,30,186 real estate projects and 88,461 real estate agents had been registered under RERA.
The Real Estate (Regulation and Development) Act, 2016, aims to enhance transparency, financial discipline and accountability in India’s real estate sector. It requires the establishment of a regulatory authority in each state/UT, and mandates the registration of real estate projects and agents with this body. Following the enactment of RERA, India was ranked 36th in the Global Real Estate Transparency Index in 2022. As noted by the Economic Survey.
RERA has introduced a fast-track dispute resolution mechanism and mandates that an ‘Agreement to Sale’ be established at the time of registration. It also requires two-thirds consent from allottees/homebuyers for any changes in project layout. Additionally, the Act specifies provisions for compensation, refunds and penalties for breaches of obligations.
Under RERA, developers must allocate 70% of funds collected from homebuyers into a dedicated bank account for land costs and project construction. The Act also requires developers to disclose essential project details, including launch date, permissions obtained, project specifications, expected delivery date and amenities.
