With the introduction of the RERA (Real Estate Regulation and Development Act) bill on the 1st of May 2017, the Indian Government is seeking to enforce strict rules on developers while safeguarding the interests of buyers. This act is expected to revolutionise the housing industry in India and protect the interest of homebuyers across the country.
And as of today, 13 states are supposed to have implemented the Act. However, state governments have modified the Act based on the situations in their state.
Here is how some of India’s biggest metropolitan cities stack up against each other.
Mumbai
India’s most populated city will greatly benefit from the introduction of this bill, as it is now mandatory for builders to register their projects with the housing regulatory body in Mumbai.
Every developer must submit their credentials, plans, and approvals to the regulatory body to register themselves with the government. This helps the state government to protect homebuyers from fraud.
Earlier, in Mumbai, after registering the agreement for sale with a builder, a homebuyer was required to pay 20% of the total amount within a stipulated period of time or risk losing the house. But today, this amount has been reduced to 10%, and the agreement can only be terminated after a 15-day notice period and only if the buyer defaults on this payment thrice.
Another major revolution in Mumbai’s housing industry is that now buyers cannot be rejected a home based on religion, caste, or gender, which used to be a common practice in Metropolitan Mumbai before the introduction of RERA.
Hyderabad
Thanks to the RERA bill, builders in Hyderabad are now in a hurry to grant possession of their housing projects to avoid incurring a penalty. This is because the new Act also states that if there is any delay in possession, the builder will be charged a hefty fine.
However, builders are also requesting the state government to modify the rules, so that only those housing projects launched after May 1st come under the umbrella of RERA.
In response to their pleas, Minister for Municipal Administration and Urban Development, K.T. Rama Rao, has asked officials to draft rules related to the same and submit it to the state government for approval.
Chennai
The Tamil Nadu government is working towards bringing all their housing projects under the purview of RERA as soon as possible.
However, while the Act only covers projects with nine or more units, the Tamil Nadu government is also bringing projects with five or more units constructed beyond an area of 500 square metres under the umbrella of RERA.
Officials in Chennai say that this move has been undertaken as housing projects with less than five units are often for personal use while those with five or more units may have commercial interests. And if this is the case, it is a lot safer for them to be protected by RERA.
Bengaluru
Being one of the biggest metropolitan cities in India, you would expect Bengaluru to have RERA implemented in full force already. However, this is not the case.
Although Karnataka was the first state to notify the draft rules of RERA back in 2016, they still haven’t finalised the rules or set up a state-level regulatory authority, both of which are mandated by the Act.
Multiple protests are being held in significant locations across Bengaluru by homebuyers eager to receive protection from the Act. Most buyers allege that the government is delaying the implementation of these rules to give builders and developers time to apply for their occupation and completion certificates so that they won’t be fined under RERA.
Currently, there are 8,000 delayed housing projects in Bengaluru, and the delayed implementation of the bill is raising quite a few questions on the matter. Homebuyers also fear that this delay means that the government wishes to grant RERA rights only to buyers of new property and not to those who have purchased existing housing units.
As of now, there is no uniformity in the bill across the country. But as time goes by, we expect to see improvements in the housing sector all thanks to this bill. Change, after all, takes its time.
