Know how of RERA and why we need RERA.pdf

1. Know-how of RERA and why we need RERA?
RERA (Real Estate Regulatory Authority) was implemented with the aim bring transparency to
real estate projects and the real estate industry. RERA was implemented to acknowledge and
solve discrepancies and issues of home buyers.
To ensure that house buyers can invest in a secure and open real estate market, RERA has been
implemented. By establishing rules for the sale of real estate and requiring developers to adhere
to certain criteria, it protects the interests of homebuyers. Additionally, it ensures that
developers maintain accurate records, that buyers are aware of their rights when investing in real
estate, and that developers are held accountable for any delays or irregularities in their
operations.
Every builder and developer is now required by RERA to update prospective homeowners on the
status of the construction. By the specified day, they must also provide them with the keys to
their property. To maintain accountability, they must also adhere to every RERA requirement.
How Implementation of RERA bring mandate to the real estate industry?
Accountability- The foremost goal of RERA is transparency among home buyers and the real
estate industry. There is a duty of every builder or promoter under RERA to be accountable for
their action to homebuyers and appropriate authority.
Wide Scope- RERA has a wide scope not only covers residential projects but also covers
commercial projects.
How implementation of RERA impact Home-Buyers?
The implementation of the RERA, 2016 in India has had a significant impact on Home-buyers.
Here are some ways in which RERA has affected Home-buyers-
• Timely delivery of projects: Promoter now must give timely possession of property
according to the agreement. Or promoter may face consequences according to the law.

2. • Redressal of Grievances: RERA has established a dedicated dispute resolution
mechanism for home buyers. Each state has a Real Estate Regulatory Authority (RERA)
and an Appellate Tribunal to address complaints and grievances. Where home-buyer
and promoter both can approach for redressal.
• Quality Assurance: RERA requires developers to adhere to certain quality standards
during the construction of projects. They must use high-quality materials and comply
with building codes and regulations. This provision ensures that home-buyers receive
homes built to the specified standards, reducing the risk of substandard construction.
Overall, RERA has had a positive impact on home buyers by promoting transparency, protecting
their interests, ensuring timely delivery, providing grievance redressal mechanisms, and
enhancing the overall quality of real estate projects.
Issue Related to RERA, 2016
Issue 1- Retrospectivity or retroactivity application of RERA in their operation and
applicability?
Issue 2- Regulatory authority jurisdiction to return or refund amount to the allottee u/s 12,14,18,
&19 of RERA? Who has the jurisdiction to do so other than Adjudicating officer?
In 2021 Newtech Promoters and Developers Pvt. Ltd. Vs. the State of UP and Others resolved
various issues related to RERA, 2016. The Major Issues that were most discussed in this case
were whether RERA was Retroactive or retrospective with its functions and authorities
authorized to return and refund the amount to allottees when the promoter defaults.
Before addressing the abovementioned issue the question is why retrospective was so important
with RERA.
It became the substantial question of law whether RERA can act retroactively or retrospectively.
And, how a refund will generate in case any default occurs from the side of the promoter.
In Newtech case Issue 1 was addressed and said- Court in this case stated that RERA activity is
Retroactive which means “A retroactive statute operates as of a time before its enactment. It,
therefore, operates backward in that it changes the law from what it was.”

3. Retroactive and Retrospective both were discussed in the Mahakali Rolling Mills v. Union of
India Case. The court discussed and said that RERA will be applied to ‘ongoing projects’
whether they came into existence before RERA got implemented and any other law or after
RERA got implemented.
Whereas, the court regarding Issue 2 said- it is the sole duty of the promoter if the promoter fails
to give possession to the allottee after taking the consideration. Promoter has to refund the price
to the allottee back. The court this case while clearing this issue court cited Imperia Structures v.
Anil Patni case and stated that sec 18(1) gives the allottee an inalienable right to get a refund
when there is no possession given by the promoter following the agreement or the promoter fails
to complete the project by the deadline. Apart from the allottee right, Promoter also gets a right
to inform regulating authority and terminate the contract if the allottee default in giving
consideration or any part of the consideration.
Court also discussed the power of the Adjudication officer regarding what extent the officer can
use their power in the refund process sec 71(1) of the act also shows the scope and power of the
adjudicating officer. And, make it apparent that the power of adjudicating officer is limited to
“adjudicating remuneration” u/s 12, 14, 18, and 19.
Conclusion-
After making RERA 2016 it was very ambiguous who has the regulating power in a matter of
refund and whether the ongoing process before implementing RERA come under the purview of
RERA 2016. The Newtech case proved to be a milestone for RERA 2016 and clear some of the
most ambiguous questions related to the said law. As of now, these issues were already
addressed and solved. It can be stated that This is the right time to file a case in RERA