Context: Recently, the Supreme Court has ruled some changes in the Real Estate Regulatory Authority Act (RERA) to protect the interests of homebuyers.

• The ruling is aimed at protecting homebuyers, the ruling brings a major relief for the buyers, speeds up the resolution process, and makes it difficult for state governments to dilute the intent of the law.

What did the court rule on homebuyers recovering their investment?

• The Supreme court observed that, under Sec. 40 RERA 2016, the homebuyers are entitled to recover the amount invested along with interest as land revenue arrears from builders.

Why the Real Estate Regulatory Authority Act (RERA) 2016 was enacted?

• RERA was introduced with the objective of ensuring greater accountability towards consumers, reducing frauds and delays, and setting up a fast-track dispute resolution mechanism.
• To secure the hard-earned money of Indian citizens: More than 77% of the total assets of an average Indian household are held in real estate, and it’s the single largest investment of an individual in his lifetime.
• To provide accountability to consumers: Prior to the law, the real estate and housing sector were largely unregulated. Consumers were unable to hold builders and developers accountable. For instance, The Consumer Protection Act, 1986 was inadequate to address the needs of homebuyers.

Status of Implementation of the Act

• 34 states/Union Territories have notified rules under RERA, while its implementation in Nagaland is under process.
• West Bengal has enacted its own legislation — West Bengal Housing Industry Regulation Act, 2017 (HIRA) — instead of notifying rules under RERA.
• 30 States/UTs have set up Real Estate Regulatory Authorities, and 26 have set up Real Estate Appellate Tribunals, as per the latest data available with the Ministry of Housing and Urban Affairs.