In what ways can the RERA law be strengthened to better protect homebuyers from unscrupulous promoters?

The Real Estate (Regulation and Development) Act, 2016 (RERA) was enacted to bring transparency and accountability to the real estate sector, protecting the interests of homebuyers. However, there are still gaps that allow some promoters to exploit loopholes or delay projects. Strengthening RERA could address these issues and provide better safeguards for homebuyers.

• Stricter Penalties and Timelines: Increase penalties for project delays and non-compliance. Impose mandatory compensation to homebuyers for delayed possession, with clear timelines for redressal.
• Enhanced Project Disclosure: Mandate real-time online updates on project status, financial progress, and approvals, so buyers can track developments transparently.
• Escrow Account Monitoring: Strengthen rules regarding the use of funds in escrow accounts. Ensure that funds collected from buyers are strictly used for the specific project and not diverted elsewhere.
• Uniform Implementation Across States: Ensure uniformity in RERA rules and enforcement across all states by creating central guidelines and monitoring compliance, as state amendments often dilute the law.
• Faster Dispute Resolution: Establish dedicated fast-track RERA tribunals and reduce the time taken for grievance redressal.
• Stringent Registration Norms: Make it mandatory for all real estate projects, regardless of size, to be registered under RERA, closing loopholes for small projects.
• Third-party Quality Audits: Introduce periodic third-party audits for construction quality and progress, the reports of which should be made available to buyers.
• Accountability of Promoters and Agents: Hold real estate agents and promoters jointly accountable for misinformation or fraudulent practices.
• Protection Against Project Abandonment: Create a fund or insurance mechanism to compensate buyers if a project is abandoned or promoter becomes insolvent.
• Buyer Representation: Mandate formation of buyers’ associations for every project, giving them a formal voice in project decisions and dispute mechanisms.