What is the Limitation under RERA?

What is the Limitation under RERA?

Highlights:

  • To ensure complete transparency in real estate, RERA aims to create a more efficient and productive system.
  • In accordance with the RERA Act, developers are not permitted to take funds assigned to previous projects and apply them to new projects
  • In order to make the real estate sector more organized and productive, the RERA Act seeks to regulate and regulate it.

One of the most promising sectors in India is the real estate sector. Real estate is one of the major employers in the nation, as well as a major contributor to national infrastructure. It remains highly unorganized despite being one of the oldest sectors.

This segment is surrounded by several apprehensions, which is why there has always been a need for regulation. In 2016, the Indian parliament passed the Act. The purpose of RERA is to create a regulatory authority that can protect the rights of purchasers. 

What is the purpose of RERA? 

There has always been a need for regulation in the real estate sector, as discussed above. The entire transaction process will be transparent, making the business more profitable and productive. The land auction has become one of the most important issues. The developers of real estate projects often sell them to investors without approval or without good construction quality. All of these issues can be addressed by RERA. RERA will address the following key points:

  • Possession delay
  • Construction quality
  • Project price
  • Establishes trust in the system
  • Enhancing dispute resolution by establishing an adjunct mechanism
  • A bond of trust is established between the buyer and seller.
  • The purpose of the Act is to protect the rights and interests of buyers.

Thus, RERA aims to create a more productive and efficient system to ensure complete transparency, thereby, eliminating any loopholes and drawbacks in real estate. 

Does RERA have any limitations?

Based on the discussion above, we can conclude that RERA is a positive step for the real estate industry. There are, however, some limitations to this Act that cannot be ignored. Here are some of the key disadvantages of RERA, particularly for developers:

  • The RERA Act prohibits developers from using the funds of a project for another project. It is not possible to take funds from a previous project account and use them for a new project.
  • Approval and permission are required to regulate the entire system. Eventually, this increases the time and impacts the sector’s productivity.
  • Many real estate developers have abandoned the sector because of the stringent regulations. Regulations require approvals and permissions, which may delay the start or completion of projects.
  • Construction materials are also used in the real estate sector. The materials are a source of income for a number of other sectors associated with them. Because of the stringent policies, there can be a considerable decline in the demand for such construction materials, which ultimately affects employment and productivity in the sector.

 Concluding thoughts:

The RERA Act has some key aspects. The positive aspects of this Act outweigh its negative aspects, despite its limitations. The RERA Act attempts to regulate the real estate sector and make it more organized and productive.

Read More:

1. Rera Approved Meaning

2. RERA Agent Registration

Leave a Reply

Your email address will not be published.