Introduction
The real estate sector plays an important role in the economic growth of a country. To ensure transparency, accountability and safeguard the interests of homebuyers and investors, many countries have established regulatory bodies.
In India, the Real Estate Regulatory Authority (RERA) was introduced to bring about much-needed reforms and protect the rights of buyers and investors. In Maharashtra, the regulatory authority is known as MahaRERA.
In this article, we will understand the details of RERA and MahaRERA, their roles, functions, and how they impact the real estate industry.
1. What is RERA?
The Indian Parliament Act, The Real Estate (Regulation and Development) Act 2016 is for the protection of the rights and interests of homebuyers and safeguard and boost their investment in the real estate industry. The Act introduced the RERA (Real Estate Regulatory Authority) for each state.
RERA stands for Real Estate Regulatory Authority. Rajya Sabha And Lok Sabha passed the bill on the 10th of March 2016 and 15th of March 2016 respectively. It is a central government legislation enacted on 1st May 2016 to regulate the real estate sector in India. RERA aims to promote transparency, accountability, and efficiency in the real estate market by establishing clear guidelines for developers, buyers, and real estate agents. The primary objective of RERA is to protect the interests of homebuyers and investors and ensure the timely completion of real estate projects.
2. Role and Functions of RERA:
The RERA certificate has several important roles and functions. It mandates that all real estate developers must register their projects with the regulatory authority before advertising or selling them. RERA ensures that developers maintain transparency by providing accurate project details, including the timeline, layout plans, approvals, and financial statements. It also regulates the use of funds collected from buyers and mandates the creation of separate escrow accounts for each project. RERA certificate provides a platform for buyers to file complaints against developers and establishes a fast-track dispute resolution mechanism.
3. MahaRERA: Maharashtra Real Estate Regulatory Authority:
The Real Estate (Regulation and Development) Act 2016 introduced the RERA (Real Estate Regulatory Authority) for each state.
In Maharashtra, the regulatory authority established under RERA is known as MahaRERA. MahaRERA has similar functions and responsibilities as the central RERA. It oversees the real estate sector in Maharashtra, including Mumbai and other cities, to ensure compliance with RERA guidelines. MahaRERA plays a pivotal role in resolving disputes between buyers and developers, protecting buyers’ rights, and imposing penalties on non-compliant developers.
Conclusion
RERA and MahaRERA have revolutionized the real estate industry in India, particularly in Maharashtra. These regulatory bodies have brought about much-needed transparency, accountability, and consumer protection. With their roles in project registration, monitoring, and dispute resolution, RERA and MahaRERA have played a crucial role in restoring confidence among homebuyers and investors. It is essential for all stakeholders in the real estate sector to understand and comply with the guidelines set by these regulatory authorities for a sustainable and thriving industry.