Abstract

The Indian Parliament approved the Real Estate (Regulation and Development) Act of 2016, that seeks to form a separate Real Estate Regulatory Authority to promote the sector and regulate the real estate industry. It also set up a Central Advisory Council to counsel the governing on the issues pertaining to the real estate sector. This act additionally provides for a separate adjudicating system to facilitate expedited conflict settlement, as well as the formation of an appealing tribunal to hear and resolve regulatory authority appeals. The act empowers the Real Estate Regulatory Authority to deal with all the aspects related to real estate sector and publishing all the related documents including the detailed site plans on its website. It also requires the Authority to keep a list of all the projects, agents and promoter and their details on its website. The act imposes multiple obligations on the promoter and buyers. The act's primarily makes the project details public and imposes restrictions on promoters regarding the direct use of funds obtained from buyers for the purpose of development, as well as a cap on receiving cash deposits from buyers. Whereas the buyers are required to pay the required amount on time with interest in case of delay. The act is expected to face serious troubles in its implementation as the matters related to real estate were primarily dealt by the local and state governments with the union government having a very limited say, but since the current act aims at transforming the whole system of real estate management, the states are unlikely to reciprocate to it and the disputes are visible.

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