RERA a ‘paper tiger’ due to lack of enforcement of orders, allege homebuyers

Three years after its implementation, homebuyers allege that the Real Estate (Regulation & Development) Act, 2016 (RERA) has turned out to be a “paper tiger” due to a lack of enforcement of orders and directions being passed by the regulatory authorities across the country.

In a letter to Housing and Urban Affairs Minister Hardeep Puri, they have said that the main issue they face today is to do with a lack of confidence about the execution of RERA orders by the authorities. They demand that the ministry in consultation with the state governments and the regulatory authorities draw up guidelines to ensure that the orders are enforced in time.

“In spite of orders and directions passed by the regulatory authorities across the country the same are not being enforced. There are powers under the Act and the Rules made by states to enforce orders and directions. However, the same are not being put to use. This is leading to pile up of orders and directions being passed but not enforced,” homebuyers said in the letter.

“The ministry in consultation with the state governments and the regulatory authorities need to find measures/guidelines etc. to ensure orders are timely enforced. Unfortunately, the complainants are put to a lot of hardship and today, the RERA is being viewed as “Paper Tiger” due to improper enforcement of RERA ACT as per the timelines,” the letter by For Forum for People’s Collective Efforts says.

Homebuyers have also brought to the notice of the ministry that the provision on Title Insurance is yet to be notified by the state governments. Proper guidelines should be issued after detailed discussions with various insurance firms, the letter said.

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They have also asked the ministry to convene regular interactions between state governments, regulatory authorities and central advisory council members for “timely, effective and coordinated implementation of RERA.”

The last CAC meeting was convened in May 2018.

“This will help equip them with proper guidelines and clear ambiguities and interpretations issues in RERA implementation. These kinds of meetings should be convened every quarter in every region, which will ensure RERA is implemented in letter and spirit across the country,” the letter says.

It also says that the RERA rules and regulations are not being brought before the state assemblies. “This is not being done by the states and is a serious lapse. The ministry should direct the states to do the same,” says the letter.

The letter also demands that March 25 be declared as Homebuyers Day.

In a separate letter to Minister of Law and Justice Ravi Shankar Prasad, homebuyers have expressed concern at the delay in hearings pending before consumer forums and have sought his intervention.

“We express our deep concern regarding delayed hearing of home buyers / consumer’s matters in the Consumer Forums particularly at the National Forum. Justice delayed is leading to justice denied,” the letter said.

“If the ongoing delay in hearing and disposal are due to infrastructure issues and the strength of the Consumer Forums, then please intervene to kindly strengthen the same so that home buyers and consumers do not suffer. The Consumer Protection Act has been a pioneering legislation, a special law, which has strengthened and empowered consumers. However, due to the delay, this avowed law is leading to setback in providing justice,” the letter written by Abhay Upadhyay, the president of Forum for People’s Collective Efforts and CAC member, government of India, says.

RERA came into effect from May 1, 2017, and Maharashtra was the first state to implement it by setting up MahaRera. Midwifed by two governments – UPA II and the NDA II – between 2009 and the 2016, the legislation was necessitated by the growing misery of tens of thousands of harried homebuyers.

vandana.ramnani@nw18.com