Comparative Study Of RERA Compliance: Before And After 2016
- IJLLR Journal
- May 5
- 1 min read
Vrinda Jain, Amity Law School (Noida)
ABSTRACT
The Real Estate (Regulation and Development) Act (RERA), 2016 represents a paradigm shift in the regulatory framework of the real estate sector in India, which previously operated in an unregulated market with issues of non-transparency, delay in execution of projects, misappropriation of funds and deceptive marketing. Buyers had limited recourse as dispute settlements largely depended on courts and consumer forum.
This article conducts a comparative study of the regulatory regimes before and after the introduction of RERA, by pointing out the flaws in the previous regime and by discussing central reforms, including the mandatory registration of projects, escrow mechanisms for financial prudence, carpet area measurements, and establishment of dedicated 'real estate developers authority'. It also analyses the effectiveness of the reforms through statutory provisions, court decisions, and state implementation.
This research concludes that RERA has made a substantial impact on transparency, accountability and consumer protection, and has improved the dispute resolution system. Nonetheless, there are issues of inequitable state implementation, institutional weaknesses, adjudication delays and regulatory gaps.
In sum, while RERA has established a robust basis for a more balanced and transparent real estate industry, the regulations need further improvements, specifically, standardisation of state-specific rules and regulations, institutional strengthening and extension of its scope for effective enforcement.
Keywords: Real Estate Regulation Authority, home Banner, Project Delays, escrow Mechanism, Carpet Area, Regulatory Compliance
