News: Recently, The Supreme Court has ruled some changes in the Real Estate Regulatory Authority Act (RERA) to protect the interests of homebuyers.
Read more: What SC order on RERA means for homebuyers
What did the court rule on homebuyers recovering their investment?
The Supreme court observed that, under Sec. 40 RERA 2016, the homebuyers are entitled to recover the amount invested along with interest as land revenue arrears from builders.
Why the Real Estate Regulatory Authority Act (RERA) 2016 was enacted?
RERA was introduced with the objective of ensuring greater accountability towards consumers, reducing frauds and delays, and setting up a fast-track dispute resolution mechanism.
To secure the hard-earned money of Indian citizens: More than 77% of the total assets of an average Indian household are held in real estate, and it’s the single largest investment of an individual in his lifetime.
To provide accountability to consumers: Prior to the law, the real estate and housing sector were largely unregulated. Consumers were unable to hold builders and developers accountable. For instance, The Consumer Protection Act, 1986 was inadequate to address the needs of homebuyers.
Source: This post is based on the article “How SC verdict on real estate Act benefits homebuyers” published in Indian Express on 20th November 2021.