Explanation:

 Many states are far from implementing The Real Estate (Regulation and Development) Act, 2016 (RERA) that comes into effect today-the Real Estate Act will make the home buyer king, while real estate developers will also benefit from the increased buyers’ confidence in the regulated environment-The Act ushers in the much-desired accountability, transparency and efficiency in the sector, defining the rights and obligations of both the buyers and developers-Under the rules, it is mandatory for the states and UTs to set up the authority-only 13 states and UTs have so far notified the rules-Those states which have not notified the rules will face public pressure and even people could approach the court in the matter-Some of the major provisions of the Act, besides mandatory registration of projects and real estate agents, include
depositing 70% of the funds collected from buyers in a separate bank account for construction of the project
ensure timely completion of the project as the funds could be withdrawn only for construction purposes
The law also prescribes penalties on developers who delay projects
All developers are required to disclose their project details on the regulator’s website, and provide quarterly updates on construction progress
In case of project delays, the onus of paying the monthly interest on bank loans taken for under-construction flats will lie on developers unlike earlier, when the burden fell on home buyers
RERA also states that any structural or workmanship defects brought to the notice of a promoter within a period of five years from the date of handing over possession must be rectified by the promoter, without any further charge, within 30 days
If the promoter fails to do so, the aggrieved allottee is entitled to receive compensation under RERA
Other highlight of the Act is imprisonment of up to three years for developers and up to one year in case of agents and buyers for violation of orders of appellate tribunals and regulatory authorities
Real estate industry bodies Confederation of Real Estate Developers Associations of India (CREDAI) and National Real Estate Development Council (NAREDCO) said the implementation of this law will bring paradigm change in the way Indian real estate functions