EnactmentThe Real Estate(Regulation and Development) Act, 20161hereinafter refer as The Act, had come into force on May 1, 2016. Only 69sections of the Real Estate (Regulation and Development) Act, 2016, werenotified at that time. The Union Ministry of Housing And Urban PovertyAlleviation issued a notification, announcing that sections 3-19, 40, 59-70, 79and 80 of the Real Estate (Regulation and Development) Act, 2016, shall comeinto force on May 1, 2017. RealEstate (Regulation and Development) Act, 2016Until the year 2016, there was no specificcentral legislation to govern the real estate sector.
Therefore, the Parliamentin order to regulate this one of the fastest-growing sectors passed The RealEstate (Regulation and Development) Act, 2016 which came into effect on 1st May2016. The journey of the Act commenced in the year 2009 when the NationalConference of Ministers of Housing, Urban Development and Municipal Affairs ofStates and UTs made a proposition of making a law on real estate sector. Thiswas endorsed on further consultations by the central government and onapprovals by the Competition Commission of India, Tariff Commission, andMinistry of Consumer Affairs2.
Subsequently, in July 2011, the Ministry of Law& Justice also suggested a central legislation in the real estate relyingon the power of the Parliament given in the Concurrent List3. On getting theUnion Cabinet approval, the Real Estate Bill was introduced in Rajya Sabha on4th August 2013. Finally, it came into force in the year 2016, when both RajyaSabha and Lok Sabha passed it on 10th and 15th March respectively.
Further, thePresident gave his assent to the Bill ten days later, thus making it anenforceable law. Objectives of the ActThis Act is passed to curb the above-mentionedmalpractices, abuses, and impediment. It intends to a.) regulate and promote real estate sector; b.) protect the interest of consumers; c.
) bring a smooth flow of even informationbetween both the promoter and the purchaser; d.) bring accountability of the promoterstowards the purchasers; e.) ensure a transparent and efficient sale inthis sector f.) bring a balance of responsibility betweenboth the parties; g.) bring uniformity, professionalism, andstandardization in different business transactions and practices in thissector; and h.) lastly, to establish a mechanism forfast-track dispute resolution. PRE RERA Period Laws As mentioned earlier, the ambit of realestate is too broad so it attracts the provisions of manifold statutes.
Hence, before the Act, the real estate regime was regulated by numerous legislationslike the Indian Contract Act, 1872, the Transfer of Property Act, 1882, UrbanLand (Ceiling and Regulation) Act, 1976, and the Registration Act, 1908. Someof the significant ones are: The Consumer Protection Act, 1986: It was after the amendment8 that ‘ housingconstruction’ was brought under the purview of service under this act. Therefore, if a buyer is dissatisfied with the housing services and facilitiesprovided by a promoter, he can approach the redressal mechanism establishedunder this Act. The Consumer Protection Act, 1986 was inadequate in three wayswhile dealing with real estate.
Firstly, the route laid here is remedial andnot punitive or detrimental. Secondly, it lacked standardization which avoids auniform and a healthy growth in the real estate sector. Thirdly, since, theconsumer forums handle all kinds of consumer disputes so they are clogged, andtheir disposition takes a very long time. It is noteworthy that the Act doesn’tbar the jurisdiction of Consumer Forums.
Also, any person whose complaint ispending before any forum established under the Consumer Protection Act, 1986, onor before the commencement of this Act, may, with the permission of such Forum, withdraw the complaint pending before it and file an application before theadjudicating officer under this Act. Land Acquisition Act, 1894: Here, (a.) the appropriate government or; (b.) a society registered under SocietiesRegistration Act, 1860 or; (c.) a cooperative society registeredunder the Co-operative Societies Act, 1912 can acquire any immovable propertyfor the public purpose by issuing a notification in the Official Gazette. The Specific ReliefAct, 1963: Under this Act, any person who is lawfully entitled to possession of aspecific immovable property may recover it within the limitation period of 6months.
Where decree for specific performance of a contract for the sale hasbeen passed and the purchaser, within the period determined by the decree, doesnot pay the purchase money