What are the duties and powers of RERA authority? – Overview

RERA stands Real Estate (Regulation) Act was established in 2016. It is an act for promoting and regulating the real estate sector to ensure that the sale of plots, apartments, or building is transparent or efficient. The Parliament introduced the real Estate (Regulation and Development) Act in May 2016. RERA Registration reduces the chance of any delays and fraud in the real estate sector, ensuring accountability and transparency. Also, a report issued by the Indian Brand Equity Foundation in March 2020, by the end of 2040, the Indian Real Estate Industry is projected to increase to 9.30 Billion US Dollars from 1.72 Billion US Dollars in the year 2019, and the size of the Indian Real Estate Sector is predicted to touch One Trillion US Dollar by the end of 2030 from 120 Billion US Dollars in the Year 2017. In this blog, we will discuss the powers and functions of the Real Estate (Regulation) Act Authority.

Following are some key impact of RERA:

• Increase the cost of capital and project cost.
• Tight liquidity.

What are the main functions of RERA Authority?

Following are the main functions of RERA Authority:

1. Regulate and Register: Real Estate (Regulation) Act Authority can regulate and register both the real estate projects and real estate agents.
2. Maintain Records and Publish: This authority needs to maintain all the records and publish them for public viewing.
3. Maintain Database: This authority needs to maintain a database of promoters on all the real estate projects websites. The database contains all the promoters' photographs and information or the projects whose license has been cancelled.
4. Fix Rules and Regulations: Real Estate (Regulation) Act Authority needs to fix all the rules and regulations for each area under its jurisdiction, and it also suggests the fees charged from the real estate agent, promoters, or the allotters.
5. Ensures Compliance of Orders and Obligations: It needs to check that all the rules & regulations and order passed by it upon the agents, promoters, and allottees and also this authority ensure all the compliance of all the obligation cast upon the real estate agents, promoters, and allottees.

What are the functions of RERA Authority for Promotions of the Real Estate Sector?

This authority makes recommendations to the Central Government for supporting the promotion and growth of the real estate sector. You can check the functions of the Real Estate (Regulation) Act Authority from below:

1. It provides interest protection of the promoter, real estate agents, allottees, and developers.
2. Methods to endorse investments in the Real Estate Sector.
3. It offers different ways to facilitate the digitization of land records.
4. Provide Real Estate (Regulation) Act advice to India's Government in the issues related to the Real Estate Sector development. This advice should be given before 60 days from the receipt of the reference from the Government.
5. Measures to increase financial support for affording housing sector.
6. Different ways to encourage the construction of affordable and environmentally sustainable housing.
7. Measures to promote the project grading on several factors of development including promoters grading.
8. Ways to provide friendly resolution of disputes between developers and allottees.
9. Different matter where the authority finds essential for the promotion and growth of the Real Estate Sector.
10. Formation of Robust Grievance System against the commission, act, and omission of the capable authority.
11. Foundation of a single-window mechanism for authorizing time-bound approvals for completion of projects.
12. Ways to promote the usage of materials, techniques, suitable construction fixtures, and fittings.

What are the Powers of the RERA Authority?

In India, there are several powers of the Real Estate (Regulation) Act Authority, and you can check the same below:

1. The authority has the power to call for any information from any Real Estate Agent, Promoter, or Allottee.
2. The Power of RERA Registration Authority is to examine the Books of Account, documents, and records of the Promoter or Real Estate Agent.
3. Real Estate (Regulation) Act has all the authorities and power of a Civil Court under the Code of Civil Procedure, 1908.
4. The authority has the ability to rectify any order within two years from any mistakes evident from the record.
5. It also has the ability to refer a case to the Competition Commission of India, and the term case denotes a monopoly situation which has been the interest of allottees.
6. The power of RERA Authority has to execute the penalty on any agent or any promoter for doing an act in violations of the provisions of the Act.
7. It has all the powers to issue provisional orders to detain the Promoters, Agents, or Allottees from carrying out any activity in contravention to provisions.

What are the benefits of RERA in India?

Here are some advantages of RERA Registration in India:

• Provide Authenticity: This certification provides authenticity to the promoters, real estate agents, and it also helps to attract more & more buyers for the future lengthy run.
• Create Professionalism: It also helps to get a specific level of professionalism in the real estate sector.
• Accurate Project Details: At the time of construction, stage builders introduce their projects and define the various projects' various features.
• No Advertisement of any project: Without the registration, promoters cannot advertise any of their projects. So, it is mandatory for all the promoters to carry the registration number of RERA for the registration.
• Flexibility in delivery: The promoters can choose the date of delivery of the project according to their own. If any builder fails to deliver the project on time or before the deadline, the builder will be liable to refund money to the purchaser.

Conclusion

In India, the Indian Government has introduced the RERA to solve all the problems that homebuyers may face. It is also introduced to form transparency and liability in the real estate sector. The Real Estate (Regulation) Act Authority acts as a regulator over the real estate sector matters in India. Both the real estate agent and the project must acquire registration from the authority.