Challenges faced Post RERA Era

General
Wednesday 17th March 2021
Author: Riya Kapoor

Highlights

Government of India notified the Real Estate (Regulation and Development) Act 2016 on 26th March 2016 and all provisions have come into effect from 1st May 2017
All commercial and residential real estate projects including plotted development shall have to be registered with RERA with certain exceptions

Government of India notified the Real Estate (Regulation and Development) Act 2016 on 26th March 2016 and all provisions have come into effect from 1st May 2017.All commercial and residential real estate projects including plotted development shall have to be registered with RERA with certain exceptions .RERA was fully implemented in India from 01 May 2017. There are many challenges faced by RERA Authorities till date. Some of the them are mentioned below:

Ensuring registration of Projects and Agents with respective RERA authorities
Ensuring Compliance to provisions of RERA Act by RERA Registered Projects
Ensuring execution of Orders passed
Invoking Section 7 and Section 8 of the Act for project completion of stressed/stalled projects
Creating general awareness regarding RERA in the entire country

Some of the key challenges faced by Real estate Industry are :

Highly decentralized operations and inconsistent governance practices across the industry value chain
Considerable reliance on third parties across the industry value chain
Need for timely and simplified approvals from Competent Authorities
Liquidity and lack of financing of Projects in the NBFC crisis
Delays in Project Completion
Reduced Sales / Correction in Real Estate Sector

Highly decentralized operations and inconsistent governance practices across the industry value chain
Considerable reliance on third parties across the industry value chain
Need for timely and simplified approvals from Competent Authorities
Liquidity and lack of financing of Projects in the NBFC crisis
Delays in Project Completion
Reduced Sales / Correction in Real Estate Sector