HRERA: A game-Changer in Real Estate Regulation

Contents

1. Introduction
2. HRERA and its aim
3. Features of HRERA
4. Legal Aspects
5. Lacuna
6. Conclusion x

Introduction

The real estate sector in India has long been plagued by issues such as delays in project completion, lack of transparency, and unfair practices by developers. These problems have not only affected home buyers but have also hindered the growth of the sector as a whole. In an effort to address these concerns and bring about much needed reforms, the Indian Government introduced the Real Estate (regulation and development) Act, 2016 (RERA)

HRERA and its aim:

The Haryana real estate regulatory authority (HRERA) is the state-level regulatory body established under the RERA Act to oversee the real estate sector in Haryana.  HRERA aims to protect the interests of homebuyers, promote transparency and accountability, and ensure timely completion of projects.

Features of HRERA:

One of the key features of HRERA is the mandatory registration of all real estate projects with the authority. This ensures that developers cannot launch or advertise their projects without obtaining the necessary approvals and clearances. This not only prevents fraudulent practices but also provides buyers with accurate information about the project, including the timeline for completion, amenities and specifications.

HRERA also mandates that developers deposit a certain percentage of the project cost in a separate escrow account. This ensures that the funds collected from buyers are used solely for the development of the project and not diverted for other purposes. This provision brings much-needed financial discipline to the sector and protects buyers from the risk of project delays or abandonment.

Legal Aspects:

One of the significant aspects of HRERA is the establishment of a fast-track dispute resolution mechanism. The authority has the power to adjudicate disputes between buyers and developers, ensuring that grievances are addressed in a timely manner. This not only saves buyers from the hassle of approaching civil courts but also provides them with a more efficient and cost-effective resolution process.

HRERA has also introduced stringent penalties for non-compliance with its provisions. Developers found guilty of violating the Act can face hefty fines and even imprisonment. This acts as a strong deterrent against unfair practices and encourages developers to adhere to the regulations laid down by HRERA. Since its inception, HRERA has made significant strides in improving the real estate sector in Haryana. It has brought about a much-needed shift in the power dynamics between developers and buyers, giving the latter a stronger voice and greater protection. The authority has also played a crucial role in boosting investor confidence and attracting more investments into the state’s real estate market.

Lacuna:

However, like any new regulatory framework, HRERA has faced its fair share of challenges. The authority has been criticized for its slow pace in resolving disputes and the lack of clarity in certain provisions of the Act. There is also a need for greater awareness among homebuyers about their rights and the remedies available to them under HRERA.

Conclusion:

HRERA has emerged as a game-changer in the real estate sector in Haryana. It has brought about much-needed transparency, accountability, and fairness in the industry, benefiting both homebuyers and developers. While there are still areas that need improvement, HRERA has undoubtedly laid the foundation for a more regulated and consumer-friendly real estate market in the state.