The Real Estate (Regulation and Development) Act, 2016 (RERA) was enacted to protect the interests of homebuyers and promote transparency in the real estate sector. It aims to regulate the real estate industry and prevent fraudulent practices. However, despite the stringent provisions of RERA, violations are still rampant in the sector. In this article, we will discuss the most common RERA violations and their consequences.
Introduction
- A brief overview of RERA
- Importance of RERA in the real estate sector
Violation 1: Delay in Possession
- Definition of Delay in Possession
- Consequences for the promoter/developer
- Consequences for the homebuyer
Violation 2: False Advertisements
- Definition of False Advertisements
- Consequences for the promoter/developer
- Consequences for the homebuyer
Violation 3: Non-Registration of Project
- Definition of Non-Registration of Project
- Consequences for the promoter/developer
- Consequences for the homebuyer
Violation 4: Diversion of Funds
- Definition of Diversion of Funds
- Consequences for the promoter/developer
- Consequences for the homebuyer
Violation 5: Structural Defects
- Definition of Structural Defects
- Consequences for the promoter/developer
- Consequences for the homebuyer
Violation 6: Change in Project Plan
- Definition of Change in Project Plan
- Consequences for the promoter/developer
- Consequences for the homebuyer
Violation 7: Non-Compliance with RERA Provisions
- Definition of Non-Compliance with RERA Provisions
- Consequences for the promoter/developer
- Consequences for the homebuyer
Violation 8: Delay in Refunds
- Definition of Delay in Refunds
- Consequences for the promoter/developer
- Consequences for the homebuyer
Violation 9: Non-Maintenance of Accounts
- Definition of Non-Maintenance of Accounts
- Consequences for the promoter/developer
- Consequences for the homebuyer
Violation 10: Non-Disclosure of Information
- Definition of Non-Disclosure of Information
- Consequences for the promoter/developer
- Consequences for the homebuyer
Conclusion
- Recap of the common RERA violations and their consequences
- Importance of adhering to RERA provisions
- Call to action to report any violations
The real estate sector has been plagued with fraudulent practices, causing significant losses to homebuyers. RERA was enacted to prevent such practices and ensure transparency in the sector. However, many promoters/developers still flout the provisions of RERA, causing undue delays, false advertisements, structural defects, and other violations. These violations have severe consequences for both the promoter/developer and the homebuyer.
Delay in possession is one of the most common violations of RERA. When a promoter/developer fails to deliver possession of the property within the stipulated timeframe, the homebuyer can demand a refund or compensation. Similarly, false advertisements mislead homebuyers, leading to financial losses and legal disputes. Non-registration of the project, diversion of funds, structural defects, and non-disclosure of information are other common RERA violations that can have serious consequences.
Promoters/developers who violate RERA provisions can face penalties, imprisonment, and cancellation of registration. On the other hand, homebuyers who suffer losses due to such violations can file complaints and seek remedies through the RERA authority.
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