Immediate Impact of RERA on Construction Industry

The Real Estate (Regulation and Development) Act, 2016 is an Act of the Parliament of India which seeks to protect home-buyers as well as help boost investments in the real estate industry. The bill was passed by the Rajya Sabha and the Lok Sabha in March 2016. The Act came into force from 1 May 2016. Remaining provisions came into force from 1 May 2017. The objectives of this act are to Ensure Transparency & Efficiency in real estate sector in regards to sale of plot, apartment, building or real estate project; Protecting the interest of consumers in real estate sector; Establishing adjudicating mechanism for speedy dispute redressal and Establishing Appellate Tribunal to hear appeals from the decisions, directions or orders of the Real Estate Regulatory Authority. Prior to RERA, there was no clarity on carpet area, was sort of monopoly of Builders regarding loading, rates, modes of payments. There were Frauds, no clear picture of project, possession, sanctions. An attempt has been made to find out the immediate impact of this act on the Builders, and the customer. The scope of study is limited to Pune area region.

The objective of this paper is

i. Study of act and understanding the provisions given in the ACT
ii. How this ACT affected the ongoing and about to start projects?
iii. How does construction companies look at it?
iv. What were the provisions they did to overcome the uncertainty even before the enforcement of Rule?.