What challenges might arise in verifying the track record of real estate promoters under the RERA law?

The Real Estate (Regulation and Development) Act, 2016 (RERA) aims to bring transparency and accountability to the real estate sector. Verifying the track record of real estate promoters is crucial for protecting homebuyers but can be challenging to implement effectively. Several difficulties may arise in making such verifications both mandatory and reliable:

• Lack of Centralized Database: There is no single, comprehensive database that captures the complete history of all real estate promoters across states, making it hard to access accurate information.
• Inconsistent Record-Keeping: Different states and authorities may maintain records in varied formats and with differing levels of detail, leading to gaps and inconsistencies in promoter histories.
• Limited Information on Past Projects: Details about older or completed projects, especially before RERA’s implementation, may not be available or may be poorly documented.
• Difficulty in Tracking Shell Companies: Promoters sometimes operate through multiple shell companies or change company names, making it hard to link them to past defaults or violations.
• Legal and Privacy Issues: Sharing and verifying personal and financial information about promoters may raise legal and privacy concerns, especially if it involves sensitive data.
• Cross-Jurisdictional Challenges: Promoters may have projects in multiple states, each with its own RERA authority, leading to difficulties in consolidating and verifying records across jurisdictions.
• Delays and Increased Costs: Mandatory verification processes can slow down project approvals and increase compliance costs for both promoters and regulatory authorities.
• Manipulation and Misrepresentation: Promoters may attempt to hide negative information or present misleading data, requiring robust mechanisms for independent verification.
• Lack of Technical Infrastructure: Some RERA authorities may lack the advanced IT systems needed to collect, store, and cross-check promoter data efficiently.