The highly anticipated Real Estate Regulatory Bill has arrived. Under this bill, the government of India is planning to establish RERA (Real Estate Regulatory Authority). The guidelines in RERA act are promising to uplift the current scenario. It seems that the government has finally found the solution of the ever-present real estate problems in India. Transparency, governance and accountability of builders, their projects and agents make RERA such a special act. However, this RERA India act has gained huge popularity because of its primary obligations to the despaired buyers of this country. Among the various organizations of builders, agents, buyers and authority there is a tension going on over the issue if RERA is biased towards any of them. Owing to such rifts, the central government has maintained that there is a balance between the buyers and the private sector in this bill.
If we take a look on the current real estate market, it makes us certain that something like RERA is the need of the hour. Private builders and agents are suffering due to lack of speed in the market. The heavy investments to make sky-scrapers have shown meagre returns. On the same lines, buyers are also the sufferers. Delayed possession, change in late out plans, heavy interests on delay of payment are some of the constant difficulties faced by the buyers. In all this conundrum, the government also brings a new dimension of problems by delaying many approvals for a project. Hence, it has now become a chain reaction starting from the greed of few people and finishing in the form of a loop discouraging many to buy and invest in reality. RERA thus, becomes a necessity for the bodies so that real estate gives a much desired boom to the Indian economy.
Above facts also prove that there can be no base of any business or imbalance in the guidelines of Real Estate Regulatory Act of India. It is actually the opposite because if there is any shift of balance in RERA India provisions then it will be of no use. Given that authority, builders, agents and buyers all are equal participants in the real estate business and its on-going problems, there is no scope of choosing one lobby over another. Big consultancy firms have already given a green signal to RERA as many domestic and foreign investors are taking it as an opportunity to invest in the Indian property market. RERA is made in such a way that its ground rules will be highly influential in ending the traditional structure of real estate industry. The practical implementation of RERA will start from next year where each state will have its own RERA.