Duties and Functions of RERA Authority: A Complete Guide
The acronym RERA Act stands for the Real Estate (Regulation and Development) Act, 2016. It is one of the most significant steps taken by the Central Government. This Act aims to safeguard the home buyers from the Illicit Activities of the Builders in India. In this learning blog, we will discuss the powers and functions of RERA Authority.
Prior to the enforcement of RERA, consumer courts used to deal with homebuyer complaints against builders. These complaints were filed under the Consumer Protection Act.
However, after the implementation of the RERA Act, there are different forums like RERA Authority, Adjudicating Officers, and Appellate Tribunal. These forums look after the complaints concerning refunds from builders, delayed possession, etc.
Concept of RERA Authority
The term RERA Authority stands for Real Estate Regulatory Authority. It was established by the Government to monitor the working of the Real Estate Sector.
This authority mandates builders and promoters to disclose all the material information about the project. Moreover, every real estate agent must register them and their project with authority.
The main function of the RERA Authority is to provide relief to the buyers by quick dispute redressal. They are also responsible for enforcing accountability and transparency in the industry.
Within one year from the enforcement of the RERA Act, 2016, every state government needed to establish a RERA Authority. Further, all the duties and functions of RERA Authority are prescribed under the RERA Act. The government has to power to set up one or more RERA Authority in the State or UT.
Further, this authority is a Body Corporate in nature. That means it has the feature of the common seal and perpetual succession. It can hold, acquire, and dispose of both immovable and movable property and can also enter in contract.
Functions of RERA Authority
Section 34 of the RERA Act, 2016 specifies the functions of RERA Authority, which can be summarised as:
- Register and Regulate: This authority can register and regulate both real estate agents and real estate projects.
- Publish and Maintain Records: It needs to publish and maintain records of the projects for public viewing.
- Maintain Database of Promoters: It needs to maintain a database on its website of all the real estate projects. The database contains the information and photographs of the promoters or the projects whose license has been revoked.
- Maintain Database of Real Estate Agents: The authority must maintain a database of the real estate agents registered with it. It also provides information and photographs of agents whose license has been revoked or rejected.
- Fix Regulations: A RERA Authority needs to fix rules and regulations for each area under its jurisdiction. It can also prescribe the fees to be charged from the allottees, promoters, or the real estate agent.
- Ensures Compliance of Obligations: This authority ensures compliance of all the obligations cast upon the promoters, allottees, and agents.
- Ensures Compliance of Orders: It needs to confirm that all the regulations and orders passed by it are duly followed.
Functions of RERA Authority for Promotion of the Real Estate Sector
A RERA Authority can make recommendations to the Central Government for assisting the growth and promotion of the real estate sector. The areas on which it can make suggestions are as follows:
- Protection of the interest of the promoter, developers, allottees, and real estate agents;
- Formation of a single-window mechanism for confirming time-bound approvals for completion of projects;
- Creation of Robust Grievance Redressed System against the act, commission, and omission of the competent authority;
- Methods to promote Investments in the Real Estate Sector;
- Measures to raise financial assistance for affordable housing sector;
- Ways to promote the construction of affordable and environmentally sustainable housing;
- Measures to encourage the use of appropriate construction fixtures, materials, fittings and techniques;
- Ways to encourage project grading on various factors of development including promoters grading;
- Procedures to provide amicable resolution of disputes between allottees and developers;
- Ways to facilitate digitization of land records;
- To provide RERA advice to the Government in the issues concerning the development of the Real Estate Sector. Such advice must be given within 60 days from the receipt of the reference from Government;
- Any other matter that the authority finds necessary for the promotion and growth of the Real Estate Sector.
Powers of the RERA Authority
In India, the powers of the RERA Authority are as follows:
- To Call for Information from any Promoter, Allottee or Real Estate Agent;
- To Conduct Examination of the Books of Account, Documents, and Records of the Promoter or Agent;
- To have all the Authorities and Power of a Civil Court under the Code of Civil Procedure, 1908;
- To Issue Interim Orders to Restrain the Promoters, Agents or Allottees from Carrying out any activity in contravention to provisions;
- To Impose Penalty on any Promoter or Agent for doing an act in violations to the provisions of the Act;
- To refer a matter/ case to the CCI (Competition Commission of India) . The term matter denotes a monopoly situation which has abuse the interest of allottees;
- To Amend or Rectify any order within two years for any mistake evident from the record;
- To Recover the amount of Interest, Compensation, or Penalty from the Promoters, Agents, or Allottees.
In India, RERA was implemented by the government to solve problems that homebuyers face. It was also launched to create accountability and transparency in the estate industry. The RERA Authority acts as a watchdog over the affairs of the Real Estate Sector. Both the real estate project and the Real Estate Agent need to obtain registration from the authority.
Our Experts at Swarit Advisors will provide you end-to-end assistance in obtaining RERA Registration hassle-free.
Read, More:What is RERA Registration Fees in India?