The Real Estate (Regulation and Development) Act, 2016, (RERA) came into effect from May 1, 2016 to safeguard the interests of homebuyers and promoters. There are 92 sections that are notified under the RERA Act 2016. While 59 provisions were notified on May 1, 2016, the remaining 33 provisions were implemented a year later- from May 1, 2017.
Section 12 of RERA Act 2016
According to Section 12 of the Real Estate (Regulation And Development) Act, 2016 listed on the Income Tax Department, ministry of finance, Government of India
Where any person makes an advance or a deposit on the basis of the information contained in the notice advertisement or prospectus, or on the basis of any model apartment, plot or building, as the case may be, and sustains any loss or damage by reason of any incorrect, false statement included therein, he shall be compensated by the promoter in the manner as provided under this Act :
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Provided that if the person affected by such incorrect, false statement contained in the notice, advertisement or prospectus, or the model apartment, plot or building, as the case may be, intends to withdraw from the proposed project, he shall be returned his entire investment along with interest at such rate as may be prescribed and the compensation in the manner provided under this Act.
To adhere to RERA-approved project plans
The promoter should follow the project plans, as approved by RERA, for project construction and execution. Any plan changes should be approved by the allottees and the RERA before incorporation.
Timely project completion
Promoters must complete the project on time, failure of which will require them to pay compensation to the homebuyers.
Transfer of title
As per the real estate agreement, promoters must transfer the title to the homebuyers after all the required approvals.
Construction quality
The real estate project must be constructed per the quality standards mentioned in the agreement. Any deviation or defects must be rectified by the promoter within a time frame or the developer may be penalised.
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Common area maintenance
Before a society is formed, it is the responsibility of the developer to maintain the society.
The absence of any RERA regulation directs the promoter to refund the amount to the homebuyers along with interest.
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