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The Real Estate (Regulation and Development) Act, 2016 [RERA] was enacted by Parliament to regulate the contractual relationship between homebuyers and promoters. RERA aims to ensure transparency & accountability in the Real Estate Sector, thereby protecting the interests of the homebuyers. The Ministry constituted a Committee to address challenges during registration of projects across States / Union Territories (UTs) and shared its report with all Real Estate Regulatory Authorities.
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Mains Practice Question
Critically examine the provisions of RERA Act, 2016, for ensuring transparency and accountability in the real estate sector.
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The Real Estate (Regulation and Development) Act, 2016 was enacted by which authority?
RERA Act, 2016 was enacted by the Parliament to regulate the contractual relationship between homebuyers and promoters.
What percentage of the estimated cost of a real estate project is the promoter liable to pay as penalty in case of contravention?
In case of contravention, the promoter is liable to pay a penalty of up to 10% of the estimated cost of the real estate project.
What percentage of amounts realized from homebuyers must promoters deposit in a separate bank account?
RERA mandates promoters to deposit 70% of the amounts realized from homebuyers in a separate bank account.
Consider the following statements regarding RERA's Constitutional Basis: 1. The Real Estate (Regulation and Development) Act, 2016 derives its powers from Entries 6 & 7 of List-III of the Seventh Schedule. 2. RERA was enacted by the Parliament under Entry 46 of List-III of the Seventh Schedule. 3. RERA's constitutional basis is solely derived from Entry 18 of List-II (State List) of the Seventh Schedule. How many of the above statements are correct?
The correct statements are that RERA derives its powers from Entries 6, 7 & 46 of List-III of the Seventh Schedule. The incorrect statements are that it solely derives its powers from Entry 18 of List-II (State List) and that it only derives its powers from Entries 6 & 7.
Consider the following two statements: Statement-I: RERA mandates the registration of real estate projects with the Regulatory Authority before any advertisement, marketing, booking, or sale. Statement-II: This is to ensure transparency and accountability in the Real Estate Sector. Which one of the following is correct in respect of the above statements?
Statement-I is correct because RERA mandates registration of real estate projects with the Regulatory Authority. Statement-II is also correct and explains why Statement-I is true, as it ensures transparency and accountability in the Real Estate Sector.