By: Prachi Ojha and Mansi Singh
The Real Estate (Regulation and Development) Act, 2016
The Real Estate (Regulation and Development) Act, 2016 (“Act”) received the assent of the President of India on 25th March 2016. The Act seeks to establish the Real Estate Regulatory Authority (“RERA”) for the regulation and promotion of the real estate sector and to protect the interests of the buyers. The Act is a significant step towards bringing in accountability and transparency in the real estate sector, which has so far been a story of delays, overpricing and exploitation. While the Act brings some respite to the buyers, property developers have been concerned about the provisions being too stringent and, in some cases, operating retrospectively.
Under the Constitution, “land” falls under the State List (where the state legislature has the exclusive power to make laws) while “acquisition and requisitioning of property” comes under the Concurrent List, empowering the Centre as well as the States to legislate on the matter. The implementation of the Act is likely to trigger a