Rera.docx

RERA, (Real Estate (Regulation & Development) Act, 2016 is first set of the organised legal system to streamline the real estate industry. RERA Laws seek to bring transparency and accountability that would protect the interest of home buyers and regain the lost faith in real estate industry.

RERA History The Act of RERA (The Real Estate (Regulation and Development) Act, 2016 was passed in March, 2016 and made effective from 1st May, 2016. Few of the section of said act was notified to be effective from 01/05/2016. The whole act was commenced from 01/05/2017. The said Act has mandated for every State/UT to – Make RERA rules for the particular State within 6 months of the effective date – The RERA Rules shall prescribe for RERA registration, RERA registration process, RERA registration fees, RERA compliances for developers, RERA compliances for agents and RERA grievance redressal process to implement the RERA Act. – Notify RERA authority for particular State within 1 year of effective date – RERA authority act as RERA registration authority. It shall also be first appellate authority for RERA grievance redressal – Constitute RERA tribunal as appellate authority for respective State within 1 year of the effective date – RERA Tribunal shall be appellate authority for RERA grievances.

RERA Objective The prominent object of the RERA is to bring transparency and generate faith & confidence of real estate buyers. Some of the objectives of RERA are –        

To establishing a Real Estate Regulatory Authority (RERA) for the sole purpose of regulation in real estate. To provide transparency and grievance system in Real Estate Sector To protect of right of buyers To establish the authenticity of promoters, real estate project and real estate agents To curb on unnecessary delay in approval of project, delivery of project etc To Set up appellate System for grievance redressal system To bring confidence in real estate sector To prescribe the penalties for defaulters

RERA consulting is our expertise area of Centrik led by professionals who have versatile experience in real estate sector. Here we provide complete end to end RERA consulting. Our Services include

Applicability of RERA and its importance

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Registration of Real Estate Projects under RERA

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RERA Registration for Real Estate Agent

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Promoter Registration

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RERA Compliance

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RERA Remittance and Withdrawal

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RERA Grievance

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Other Related Matters

INTRODUCTION

Currently, more and more researches are being conducted in relation to the promotion of the sustainable development in several areas to allievate the relevant problem. Since ‘sustainability’ and ‘sustainable development’ encompases economic security and growth, environmental quality and integrity, social cohesion and quality of life, empowerment and governance, hence, the role of the real estate sector in the promotion of the sustainable development become predominant, because it involves one of the basic pursuit of life, viz, roti, kapda and makan and thus has major impact on the state of socio-economic status. Since Real estate is inseparable from human economy in its social form, and all plans of social reform must be directed toward an appropriate distribution of economic goods including housing and infrastructure. There exists a huge demand for housing and infrastructure in the Indian scene. For achieving the goal of ‘Housing for All’, we need to build millions of houses both in urban and rural areas. The urban housing shortage is estimated at 18.78 million in 2015. Total rural housing shortage in India stood at 14.8 million as of 2015 and is expected to grow to 48.8 million by the end of 2017. Demand for residential space in Low Income Group category remained 40% whereas supply was much behind at 22% i.e. a demand supply gap of 18%. Similarly, demand-supply gap in Middle Income Group and High Income Group categories stood at 20% and 2% respectively. The housing sector alone contributes 5-

6 per cent to the country's Gross Domestic Product (GDP). Real estate, as a general term, describes the built environment, which plays a vital role in every aspect of an economy, society and environment. Businesses and society can't function without the services of commercial property, including the provision of offices, shops, factories, malls and many other forms of real estate. The commercial property sector delivers and manages the infrastructure needed for entrepreneurship to thrive. It is therefore a fundamental source of employment and economic growth, and a major contributor in addressing two critical challenges of our time: providing liveable and functioning cities for a growing urban population and reducing the environmental footprint of the built environment. The real estate has a catalytic role in fulfilling the demand for housing for the various socio-economic classes. Equally important is need to provide the back up infrastructure covering utility services such as water supply, sewerage, drainage, roads and transport requirements as well as social infrastructure like schools, health and recreation facilities, commercial infrastructure like markets/malls, office complexes, technology parks etc. The cumulative effect of these demands places the onus on the real estate and construction sector, providing an excellent opportunity for conferring social benefits which could act as a major vehicle for kick-starting the economy. IBEF Report (2016) estimates that India’s real estate sector’s market size is expected to grow upto USD180 billion by 2020 from USD93.8 billion in 2014, that reflects an increase of 1.92 times. It is further estimated to be worth USD853 billion by 2028. Further, real estate sector is the fourth largest sector in terms of FDI inflows which is estimated to grow to USD25 billion by FY22. The number of Indians living in urban areas are increasing rapidly and are expected to be about 600 million in 2031. The Indian economy experienced robust growth in the past decade and is expected to be one of the fastest growing economies in the coming years. It has also been estimated that real estate contribution to India’s GDP is estimated to increase to about 13 per cent by 2028. Increasing share of real estate in the GDP would be supported by increasing industrial activity, improving income level, and urbanisation. The growth of real estate

sector is not only driven by growing economy but policy support from government as well. For instance, Government plans to build 100 smart cities which would reduce the migration of people to metro and other developed cities. Government initiatives such as various urban development policies and programmes (e.g., JNNURM, Land Acquisition Act. Affordable Housing, Ease in housing finances, Widening the scope of real estate market, change in FDI Regulation) are expected to contribute to enhanced urbanisation. Urbanisation and growing household incomes are driving demand for residential real estate and growth in the retail sector. India’s urban population as a percentage of total population was around 32.4 per cent in 2016 and is expected to rise to 40 per cent by 2030. Industry players, including realtors and property analysts, are rooting for the creation of "Special Residential Zones" (SRZs), along the lines of SEZs.