Is RERA has been Put at a Disadvantage by Making Homebuyers Financial Creditors?
Sep 02, 2019 Legal Guidance
Homebuyers have been at an advantage since RERA came into effect in 2017. The main aim behind RERA is to put an end to the malpractices of the builders. For years, the consumers or the buyers have been exploited by the builders by not keeping their promises and not completing the projects on time. As RERA will come into full force, all these are more likely will come to an end. The regulatory body is a one point stop for buyers to address their grievances and get their issues resolved in time.
With RERA, the buyers could address their issues of fake promises by the builders and non- compliance. They could even take the builder to court for the same reasons. Every state is assigned an independent regulatory body whose sole purpose is to keep an eye on the real estate projects. It is also mandatory for the builders to register every project with the RERA before starting the construction. The builders are also required to state every detail of the project clearly and are supposed to keep their promises that they have made.
However, some of the recent developments have put the idea behind RERA in jeopardy. The Insolvency and Bankruptcy Code (2016) has declared the homebuyers as financial creditors, empowering the homebuyers to drag the builders who are defaulters, to the court.
Experts are still trying to figure out the pros and cons of the move. Though some believe that it has already dwarfed the position and point behind RERA, others think that there must be loopholes that the builders are ready to exploit already. There are also some speculations that the difference in the definition of ‘consumers’ will put the buyer who is seeking the refund or asking for the project to be delivered, in an awkward position.
With RERA, the buyers could address their issues of fake promises by the builders and non- compliance. They could even take the builder to court for the same reasons. Every state is assigned an independent regulatory body whose sole purpose is to keep an eye on the real estate projects. It is also mandatory for the builders to register every project with the RERA before starting the construction. The builders are also required to state every detail of the project clearly and are supposed to keep their promises that they have made.
However, some of the recent developments have put the idea behind RERA in jeopardy. The Insolvency and Bankruptcy Code (2016) has declared the homebuyers as financial creditors, empowering the homebuyers to drag the builders who are defaulters, to the court.
Experts are still trying to figure out the pros and cons of the move. Though some believe that it has already dwarfed the position and point behind RERA, others think that there must be loopholes that the builders are ready to exploit already. There are also some speculations that the difference in the definition of ‘consumers’ will put the buyer who is seeking the refund or asking for the project to be delivered, in an awkward position.
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