How much successful is RERA

The pan-India homebuyers’ body, the Forum for People’s Collective Efforts (FPCE), has approached the Ministry of Consumer Affairs urging the issuance of real estate sector-specific guidelines under the Consumer Protection Act, 2019, to address malpractices by realty developers and safeguard homebuyers’ interest.

The association has pointed out that real estate-related complaints make up around 10% of the total cases lodged with consumer forums.

Given the high financial stakes, where many homebuyers invest their life savings, the need for sector-specific regulations is more pressing than ever.

A major issue is misleading advertisements, where developers exaggerate project features. Promised amenities are often missing or not part of approved plans, and buyers only realize the discrepancies when signing the Agreement for Sale (AFS) or taking possession.

Project delays are common, with developers extending deadlines indefinitely, causing financial distress for buyers. Contracts are also unfair, requiring homebuyers to pay 10% upfront without seeing the Agreement for Sale.

These agreements often include one-sided clauses that penalize buyers for delays but not developers. The body has urged the government to mandate exit clauses, allowing buyers to cancel bookings without losing the full amount.

FPCE has pointed to unfair trade practices in the sector. One such practice is the demand for full payment upon possession, even when common areas, facilities, and amenities are incomplete.

In addition, developers often inflate carpet area measurements through self-certification by their own architects, charging buyers more for additional space they did not agree to purchase.

Another concerning practice involves developers altering project plans without buyers’ knowledge or consent. Such changes, which benefit developers financially, leave homebuyers with products that differ significantly from what was initially promised.

In many instances, homebuyers are unable to secure clear property titles, even after taking possession, due to outstanding dues between developers and local authorities.

The homebuyers’ association is calling for guidelines that would ensure developers clear all statutory dues before the handover of properties.

While the Real Estate (Regulation and Development) Act (RERA) was enacted in 2016 to address some of these issues, the homebuyers’ body argues that it has fallen short of achieving its intended objectives.