The Real Estate transactions were very lopsided and were heavily in the favour of developers. The home buyers had a hard time dealing with the real estate principles and rules. There was a lack of transparency in the dealings of the real estate. For preventing these lacunas, the government took an initiative and proposed its model which provides equitable and fair deals and transactions between the buyer and seller in the primary market.

The Real Estate (Regulation and Development) Act,2016 (RERA) bill was passed by Rajya Sabha on 10 March 2016 and by the Lok Sabha on 15 March 2016. The act came into force on 1 May 2016 with only 59 sections out of 92 notified. The remaining provision came into force on 1 May 2017. The ultimate purpose of RERA is to protect the interest of the household buyers and promote the investments in the real estate sector. [1]

Importance of RERA
The introduction of RERA is of great importance for the Real Estate sector as it is one of the leading revenues generating sector of our country and it needed some transparency and a Regulating Authority which could keep a check on transactions dealt by the developers. There are number of things in the Real Estate Sector which are mandated now because of RERA.

For instance:
1. The RERA is applicable to more than 76000 companies in our country.[2]
2. The registration of the project and the Real Estate Agent is mandatory.
3. In case of a new project, 70% of the fund garnished by buyers is to be deposited in an escrow account.
4. In case of an ongoing project, 70% of the unused fund is to be deposited in the in an escrow account.
5. The buyer has the right to enquire all about the real estate project and also to get hold of all the documents related to the said project.[3]
6. The regulations imposed by RERA are important for the development and growth of the country’s Real Estate sector. It also provides a common ground for both developers and buyers and reduces the risk which were faced by people before its implementation.

Scope of RERA
The scope of RERA is very wide in respect to the Real Estate Sector. It covers all the new as well as ongoing projects that is under construction projects and it also includes both the residential and commercial buildings. It covers all the parties included in a Real Estate projects. Even the Real Estate brokers and agents also fall under the ambit of this Act. The main motive of RERA is to provide ease and comfort for the homebuyers that is why every state is required to set up an Appellate Tribunal for addressing the grievances of the homebuyers.

All the builders are required to register the projects with the Tribunal before the initiation of those projects. The registration mandates them to express the details of the project and the deadline for the completion of the project and if the deadline is not met, the builders have to face the penalties and criminal charges. They also have to compensate the home buyer for the delay in the project. Before the existence of the RERA Act, the builders used to divert the funds of the ongoing project to start a new project because of which delay occurred in the completion of individual project. Now, the builders have to deposit the 70% of the fund in a separate bank account so that the fund is not diverted and is used in the project for which it was sanctioned.[4]

Objective of RERA
The main object of the RERA is to replenish the faith of the buyers in the Real Estate sector and to bring transparency in the Real Estate transactions. RERA aims to protect the rights of the buyers by establishing the Real Estate Regulatory Authority (RERA) which will provide grievance system in Real Estate sector. It also aims to increase the credibility of the Promoters, Real Estate brokers and agents which would aid in preventing the unnecessary delay in the completion and delivery of the projects. The RERA Act provides for establishment of Appellant System for Grievance Redressal and to prescribe the penalties and charges for the defaulters.

The Present Scenario
 Even though the RERA was established quite some time ago, the operational status of it still varies in most states. Out of all the states in the country (excluding Jammu and Kashmir), 15 states have still not set up websites with information regarding the status of real estate projects. It came to light, after a poll was conducted by Magicbricks, that about 74% of buyers are not even aware that, under the regulations they are required to check if the project has been registered with the RERA or not. While in states like Maharashtra the websites have already been set up and are functioning efficiently, in many more states like Harayana, builders have to physically go to the RERA offices to verify their registration and the status (completed or not) of their projects. However, even with all these drawbacks it is very evident that the act has brought into the notice of both the builders and the buyers, the relevant aspects of the laws regulating real estate.5

Conclusion
RERA came as a comforting breeze for the home buyers because bad construction quality, delay in delivery of projects not following the sanctioned plans were common problems before the commencement of this Act. The existence of RERA is not only protecting the interests of the home buyers but also benefiting the builders because of the greater transparency. The concept of RERA is flawless if implemented as it is but because of the non-compliance of the rules by some of the states and the developers, it becomes very difficult to fulfill the exact purpose of RERA. The introduction of RERA Act is a huge step forward that is why the state Regulatory Authority needs to frame the rules according to the Act and not divert them in builder’s favour.

End-Notes
[1] http://mohua.gov.in/upload/uploadfiles/files/9-1569.pdf
[2] https://www.thehindubusinessline.com/news/real-estate/new-realty-law-in-force-from-today/article9674597.ece
[3] https://blog.ipleaders.in/importance-rera-real-estate-regulatory-act-possible-effect-real-estate-sector/
[4] https://www.projectguru.in/publications/rera-impact-indias-real-estate/
5 http://www.newindianexpress.com/business/2018/may/01/a-year-after-rera-act-introduction-changes-in-realty-sector-negligible-1808532.html