The U.P. Rera is the Real Estate Regulation and Development Act which got enacted in 2016. It is known to be India’s first regulator which got into act from Monday 1, 2016. The act got passed by the parliament and with the approval by Union Ministry of Housing and Urban Poverty Alleviation it finally become a draft on May 1, 2017. It is known to formulate and notify the rules for functioning of the regulatory bodies. RERA also seeks for a better clarity and fair practices in property development, buying and works in protecting the interest of buyers while imposing penalties on the errant builders. SKA Orion , Nirala Estate Phase 2 and Apartments in Yamuna Expressway are nice residential places.
The U.P. RERA works according to the state and union territory with its own regulator along with set of rules which govern the functioning of regulator. The center has already drafted the rules for the union territories that includes the national capital. While many of the states are still behind the schedule for notification of the RERA rules many of them have notified rules along with regulators that will soon start functioning. Some of these prominent states are Uttar Pradesh, Haryana and Maharashtra.
There is somewhat low demand which could be seen in terms of property buyers and the Covid-19 has already deepen the crisis. Also, the unavailability of labour during the time of lockdown has aggravated the situation which is certainly not in favour of buyers. At this point of time UP RERA helps to overcome much of the issues and it works in favor of the buyers.
The key terms which are found with RERA implementation are:
Promoter of real estate development firm has to manage a separate escrow account for each project. A minimum 70 percent of the money from investors and buyers will be deposited for development of project on early basis. Money has to be used for the construction of project and the cost has to be borne towards the land. RERA also requires builders to submit the originally approved plans with ongoing projects along with alterations which may be found later. The builders have to furnish details of the revenue collected from the allotees, also has to mention how the funds are utilized, the given timeline for the construction, completion along with delivery that will need to be certified by any engineer, architect or the practicing chartered accountants.
Some of the salient features related to RERA are:
- It has got established with State Real Estate Regulatory Authority as per the Government body and also approach for redressal of grievances against any of the builders.
- The law vests authority on the real estate regulator which also governs with both the residential along with commercial real estate transactions.
- The law makes it mandatory for the developers to post all the information on the issues such as the project plan, layout, government approvals along with land title status or even the sub-contractors to the project.
- The maximum jail term for a developer along with violating order of the appellate tribunal of RERA is three years with or without fine.
Thus, one could understand that the RERA Guidelines are in favour of the buyers and its implementation will certainly give more benefit to buyers.