Rera at a glance

    India is witnessing rapid urbanisation. According to Census 2011, India’s urban population was 37.7 Crores, which is projected to grow to about 60 Crores by 2030.

    Urbanization in India has become an important and irreversible process, and it is
    an important determinant of national economic growth and poverty reduction.

    In such scenario, Real Estate sector has an important role to play. The Real Estate sector contributed around 7 % to India’s GDP in 2018-19 and its share is expected to grow to around 13% of India’s GDP in 2025.

    It is a sector with strong forward backward linkages, particularly with the core sectors of the economy, such as steel, cement, and other building materials and directly/ indirectly impacts 270 different industries. Clearly, growth of Real Estate Sector has serious socio-economic gains to offer.

    In view of various issues plaguing the harmonious development of Real Estate sector and to protect the interest of homebuyers, need for specific legislation was being felt for a long time which culminated in enactment of The Real Estate
    (Regulation and Development) Act, 2016 [RERA].

    Genesis of RERA

    A Concept Paper on legislation for regulation of real estate was prepared in 2008. However, due to various reasons it could not see the light of the day. Thereafter work on proposed legislation recommenced with great fervour. After
    detailed deliberations and consultations with all stakeholders, The Real Estate (Regulation and Development) Act, 2016 [RERA] was passed in both the houses of parliament in March 2016. Certain Sections of RERA were notified with
    effect from 1 May, 2016 and remaining sections.