The Real Estate Regulatory Authority (RERA) has completed two years of complete implementation. It has created a significant impact on the market and changed the way it operates in more ways than one.
Transforming an industry that was run on laws of a wasteland, RERA has brought transparency and order to one of the largest employing industries in the country. It has brought a welcome change for all the stakeholders of this market.
Here’s a look at what RERA has been able to achieve for real estate in India in the last two years.
Real estate developers are required to open a separate account under RERA norms for each project. Real Estate companies should open this account in a scheduled bank; it also requires at least 70% holding received by them for the project.
Developers can only use the funds to finance the project in question. This presents a kind of transparency in the industry hitherto unheard of.
Before, the real estate legislation throughout the country was incoherent to say the least. Today, the implementation of an umbrella law like RERA that builds a bridge between the Union and State governments has given 19 states their own RERA portal.
It has also brought an organized framework for the industry. Today, real estate agents can become government recognized under RERA.
RERA has done a lot for homebuyers throughout the country. Including them in the creditors committee and arming them with the power to invoke insolvency against a builder has made the market a lot more secure today.
From EMI penalties in case of property handover delays to allowing only registered real estate projects to advertised, it has completely changed the image of the industry.
India has moved up some major points from ranking 182nd on the World Bank’s Business Ease index to 52nd for the real estate sector. With a single window for registration and permissions along with Real Estate Regulatory Authority website domains, real estate has become significantly easier.
The impact of RERA will bring further change in the industry; especially, since more states will take the initiative to move under the Real Estate umbrella. As of now, it continues to legitimize an industry that has been shunned into corruption.
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