The Real Estate Regulation and Development Act (RERA) 2016, has come in effect from 1May, 2017. According to the act each state and UT will have its own regulatory authority (RA) which is free to build its own norms and regulations. The Real Estate Act, 2016 aims at protecting the rights and interests of consumers and promotion of uniformity and standardization of business practices and transactions in the real estate sector. It attempts to balance the interests of consumers and promoters by imposing certain responsibilities on both.
The motive behind establishing RERA is to smoothen the process of dispute redressal and to safeguard the interest of consumer. The market has noticed a significant change with the introduction of RERA. Timely delivery of projects and elimination the degree of risk in case of construction are the key factors which will induce the NRIs to invest in Indian market. Since RERA restricts project funds to be diverted to other projects, NRI buyers can be ensured that their investment would be safe. Therefore, RERA has not only translated the Indian real estate sector more transparent but has also made it safe for buyers. Importantly, majority grievances that an NRI buyer had against the realty sector have been addressed.