Challenges Faced by RERA

RERA (Real Estate Regulatory Authority) is a significant step taken in the real estate sector and has shown results in recent times. The RERA Act aims to enhance transparency in the real estate sector, removing unregistered entities from the market, thereby providing a safer environment for investors and homebuyers. However, the RERA Act faces several challenges and shortcomings.

1. Lack of Rules Regarding Project Approvals:

   - While the RERA Act extensively covers the duties and rights of homebuyers and real estate developers, it remains silent on the delays caused by government authorities in granting necessary approvals. Typically, obtaining all government approvals can take up to two years from the application date. The Act does not hold government officials accountable for such delays.

2. Absence of a Single-Window System:

   - Real estate developers face the arduous task of obtaining individual approvals from various government departments, which adds to the overall project delivery timeline. The existence of a single-window system would have expedited project completion multifold.

3. Lack of Clarity on State-Specific Content:

   - Certain aspects of RERA lack clarity. For instance, the RERA authorities of Delhi, Karnataka, Haryana, Gujarat, and Uttar Pradesh have not issued a standard format for certificates from engineers, auditors, and chartered accountants.

4. Complex Registration Process:

   - The lack of uniformity in state RERAs makes the registration process very complex. For example, the existence of two RERAs or an alternative authority like the West Bengal Housing Industry Regulatory Authority (WB-HIRA) causes confusion and frustration in the registration of projects and real estate agents.

5. Lack of Technical Knowledge:

   - The online and tech-supported registration process may be beneficial for developers in metropolitan areas, but it creates challenges for developers and builders from non-metro, tier 2, and tier 3 cities. RERA should initiate outreach programs for developers' education and attempt to start the registration process in local languages.

In conclusion, the RERA Act was implemented in 2016 to regulate the real estate sector, improve transparency, eliminate discrepancies, and protect the interests of homebuyers and real estate developers. RERA has significantly contributed to regulating the real estate sector across India.