INTRODUCTION
The real estate market has been developing over the years and attracting investors from all over the globe. However, Homebuyers and landowners face an abundance of problems with builders/promoters like illegal constructions, fraudulent developments of property and huge delays in completion of projects. Therefore, the introduction of RERA had become a must to come to the aid of the homebuyers and landowners.
The real estate sector has had its ups and downs like any other sector. However, this sector has developed drastically in recent years where builders have been making large amounts of money and a large portion of landowners and homebuyers have been cheated. However, aggrieved parties always had the remedy to approach the consumer forum, but that remedy is only curative and is not enough to address all the concerns of the promoters and buyers in that sector. The introduction of RERA Act, 2016 has come to the rescue of these aggrieved parties by giving quick remedies to them.
“to establish the Real Estate Regulatory Authority for regulation and promotion of the real estate sector and to ensure sale of plot, apartment or building, as the case may be, or sale of real estate project, in an efficient and transparent manner and to protect the interest of consumers in the real estate sector and to establish an adjudicating mechanism for speedy dispute redressal and also to establish the Appellate Tribunal to hear appeals from the decisions, directions or orders of the Real Estate Regulatory Authority and the adjudicating officer and for matters connected therewith or incidental thereto.”
This Act provides for establishment of Real Estate Regulatory Authority for promotion and regulation of the real estate sector to ensure sale of apartment, building or plots or sale of real estate project in a transparent and efficient mode. It also ensures protection of interest of consumers in the real estate sector. Further, it also provides for establishment of an adjudicating method for speedy dispute redressal and also to set up the Appellate Tribunal to hear appeals from the directions, orders or decisions of the Real Estate Regulatory Authority. This Act regulates dealings among promoters and buyers of residential real estate projects. It provides for establishment of State Level regulatory authorities called Real Estate Regulatory Authorities (hereinafter to be called as RERA). This Act mandates for housing real estate projects, with some exceptions to be enrolled with RERAs. A Promoter cannot offer or book these projects for sale without registering them with RERA’s. The real estate agents who deal in these projects also need to be registered with RERAs. The promoter has to upload details of the project on the website of RERA’s websites after registration. Such details include schedule for completion of the real estate project and the site and layout plan. The sum raised from buyers for a project has to be kept in a separate bank account and shall be utilised for building of that project.
JURISDICTION, PROCEDURE, POWERS AND FUNCTIONS OF THE APPELLATE TRIBUNAL
Any person aggrieved by an order, direction or decision made by an adjudicating officer or the Authority may file an appeal before the Appellate Tribunal. An appeal may also be filed by an appropriate government or the competent authority before the Appellate Tribunal.55 The appellate Tribunal can make its own procedure and it will not be bound by the procedure laid down by the Code of Civil Procedure, 1908. However, the Appellate Tribunal will be guided by the principles of natural justice. The Appellate Tribunal also need not to adhere to the rules of evidence contained in the Indian Evidence Act, 1872. The Appellate tribunal will have the authority of civil court for the purpose of discharging its functions under the Act. The proceedings before the Appellate Tribunal are to be considered as judicial proceedings. The appellant or applicant will have legal right to represent his case either in person or by a legal representative or company secretary or chartered accountant or cost accountant. Each order made by the Appellate Tribunal can be executed as a decree of civil court. An appeal can be made by any person aggrieved from any order or decision of the Appellate Tribunal to the High Court within a period of sixty days.
OFFENCES, PENALTIES AND ADJUDICATION:
Chapter VIII of the Act provides the provisions relating to punishment for non-compliance of the provisions of this Act. The promoter will be liable for 3 years imprisonment and fine up to ten percent of the real estate project if he does not register the project with RERA under section 3 of the Act. The promoter can be imposed fine up to five percent of the project if he gives false information and violates section 4. A penalty up to five percent of the project shall be imposed if the promoter infringes any other provisions of the Act except sections 3 and 4. The real estate agent shall be liable for a penalty of rupees ten thousand per day and a maximum up to five percent of the plot, apartment or building of the real estate project if he does not register himself with RERA. The promoter shall be liable for a fine up to five percent of the project for each day default if he contravenes or fails to comply with the directions or orders of RERA under the Act. Further, the promoter shall be punished for a term up to three years and with fine up to ten percent of the project for each day default if he contravenes or fails to comply with the directions or orders of Appellate Authority under the Act. The real estate agent shall be liable for a penalty for each day default and up to five percent of the plot, apartment or building of the real estate project if he does not comply with orders of the Authority. He shall be punished for a term up to one year and with fine up to ten percent of the project for each day default if he contravenes or fails to comply with the directions or orders of Appellate Authority. The allottee shall be liable for a fine up to five percent of the project for each day default if he contravenes or fails to comply with the directions or orders of RERA under the Act. He shall be punished for a term up to one year and with fine up to ten percent of the project for each day default if he contravenes or fails to comply with the directions or orders of Appellate Authority. Whenever an offence is committed be a company, the persons who are in charge or responsible for conduct of the business of a company can be punished if they are found to be guilty under the provisions of this Act. The Authority while adjudging compensation under sections 12, 14, 18 and 19, will have to appoint a judicial officer who is or has been a district judge to be an adjudicating officer for making an enquiry under the provisions of this Act. An application for compensation is to be determined by the adjudicating officer within a period of sixty days.
CRITICAL ANALYSIS OF THE PROVISIONS OF THE ACT
The act ensures that homebuyers and landowners investments are safeguarded from any hardships caused at the hands of promoters and builders. The introduction of the RERA Act has brought more transparency in the real estate sector by stipulating the obligations of the parties, compensation to aggrieved parties and various aspects of law which were yet to be settled in the past.
It also provides redressal mechanism to the buyers in the form of Real Estate Regulatory Authority and Appellate Tribunal in a case if any promoter, developer or agent infringes their rights under the Act. Further, the provision for penalty either fine or punishment or both also ensures fair play in action in real estate sector.
CONCLUSION
The value of properties and land, the investments made by homebuyers and landowners with their hard-earned money enhances the economic growth of our beautiful country. Therefore, to protect the interest of these hardworking landowners and homebuyers the RERA act has clearly laid down a mechanism with a simple yet clear vision to aid various transactions in the real estate sector. Hence, I conclude that this act has provided extraordinary relief to all individuals by protecting their hard-earned investments in the real estate sector have been well protected.