Answer By law4u team
The Real Estate (Regulation and Development) Act, 2016 (RERA) addresses issues related to project delays and completion timelines to ensure transparency and protect the interests of homebuyers. Here’s how RERA tackles these issues: 1. Mandatory Registration of Projects: Registration Requirement: Under RERA, all real estate projects (except for projects where the land area is less than 500 square meters or less than eight apartments) must be registered with the Real Estate Regulatory Authority (RERA) before advertising or selling. Project Details: Developers must submit detailed project information, including the expected completion date, at the time of registration. 2. Disclosure of Project Details: Timeline Disclosure: Builders are required to provide a clear timeline for the completion and delivery of the project. This includes the date of possession and any potential delays. Updates: Developers must update the project status regularly on the RERA portal, providing transparency regarding construction progress and any changes to the completion timeline. 3. Accountability for Delays: Completion and Possession: RERA mandates that developers must complete the project and obtain a completion certificate before handing over possession. If there is a delay beyond the promised date, the developer is accountable. Penalties for Delay: In case of delays, builders are required to compensate the homebuyers for the period of delay. This compensation typically includes the interest on the amount paid by the homebuyer, which is usually at the same rate as the interest charged by the builder for delayed payments. 4. Defects Liability: Defects and Poor Quality: RERA provides for a defect liability period of up to five years from the date of possession. If there are defects or poor quality in construction, the builder is obligated to rectify these defects at no additional cost to the homebuyer. Complaint Resolution: Homebuyers can file complaints with the Real Estate Regulatory Authority if the builder fails to address defects or delays as required. 5. Escrow Account: Use of Funds: Builders are required to deposit 70% of the amounts received from homebuyers into a dedicated escrow account. These funds can only be used for the construction of the project and for the land cost. This helps in ensuring that the funds are utilized for the project and not diverted to other projects or purposes. Monitoring: The use of the escrow account ensures that the project is funded appropriately, reducing the risk of delays due to financial issues. 6. Legal Recourse and Dispute Resolution: Dispute Resolution Mechanism: RERA provides a mechanism for dispute resolution through the Regulatory Authority and the Appellate Tribunal. Homebuyers can file complaints regarding project delays, non-compliance, and other issues. Penal Provisions: RERA includes provisions for penalizing builders for non-compliance with the regulations, including fines and penalties for delays and other violations. 7. Transparency and Accountability: Public Records: The RERA portal maintains public records of project details, including timelines, status updates, and developer information. This promotes transparency and allows homebuyers to track the progress of their projects. Regulatory Oversight: RERA authorities have the power to monitor and enforce compliance with the regulations, ensuring that builders adhere to the timelines and quality standards set out. 8. Homebuyer Protection: Right to Information: Homebuyers have the right to access information about the project’s progress and completion status through the RERA portal. Compensation Claims: Homebuyers can claim compensation for delays and deficiencies in construction, ensuring they are compensated for any inconvenience caused by project delays. Conclusion: RERA addresses project delays and completion timelines by enforcing strict regulations on builders, including mandatory project registration, transparent disclosure of timelines, accountability for delays, use of escrow accounts, and provisions for defect liability. It provides a structured mechanism for resolving disputes and ensuring that homebuyers’ rights are protected, thereby enhancing transparency and accountability in the real estate sector.
