RERA is a legislation that has been formulated with a view to (i) protect the interest of the allottees by promoting transparency, accountability and efficiency in the construction and execution of real estate projects by promoters and (ii) establishing uniformity, standardization of business practices and transactions in the real estate sector.
Following the Notification dated April 26, 2016 through which numerous provisions of RERA were first brought into effect, the Ministry of Housing and Urban Poverty Alleviation, vide its Notification dated April 17, 2017 (“Notification”), has now notified the remaining provisions of RERA (tabulated below) with effect from May 01, 2017.
Therefore, as of date, the provisions of RERA in entirety are in effect and various States have formulated the applicable rules. Hopefully, in due course, the regulatory mechanism of checks and balances under RERA will ensure a paradigm change in the real estate sector by reducing the number of unfair practices, and bring in accountability of promoters.
| Section Nos. notified w.e.f May 01, 2017 |
Key Provisions |
| Section 3-19 | (i) registration of real estate project and registration of real estate agents, (ii) functions and duties of promoter and (iii) rights and duties of allottees. |
| Section 40 | recovery of interest or penalty or compensation and enforcement of order, etc. |
| Sections 59-70 | offences, penalties and adjudication and provides for the quantum of penalty to be levied and/ or the quantum of years for imprisonment, wherever applicable in case of violations committed by the (i) promoter, (ii) allottees and (iii) real estate agents |
| Section 79-80 | (i) bar of jurisdiction and (ii) cognizance of offences, respectively. In terms of the provisions of Section 79, the jurisdiction of civil courts has been barred from entertaining any suit or proceeding in respect of any matter, over which the authority constituted for the purposes of RERA is empowered to act upon. Section 80 of RERA stipulates that no court inferior to that of a Metropolitan Magistrate or a Judicial Magistrate of first class shall have the authority to try offences punishable under RERA, save on a complaint made in writing by the authority or any officer constituted for such purposes under RERA. |