Enactment that time. The Union Ministry of

Enactment

The Real Estate
(Regulation and Development) Act, 20161
hereinafter refer as The Act, had come into force on May 1, 2016. Only 69
sections of the Real Estate (Regulation and Development) Act, 2016, were
notified at that time. The Union Ministry of Housing And Urban Poverty
Alleviation issued a notification, announcing that sections 3-19, 40, 59-70, 79
and 80 of the Real Estate (Regulation and Development) Act, 2016, shall come
into force on May 1, 2017.

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Real
Estate (Regulation and Development) Act, 2016

Until the year 2016, there was no specific
central legislation to govern the real estate sector. Therefore, the Parliament
in order to regulate this one of the fastest-growing sectors passed The Real
Estate (Regulation and Development) Act, 2016 which came into effect on 1st May
2016. The journey of the Act commenced in the year 2009 when the National
Conference of Ministers of Housing, Urban Development and Municipal Affairs of
States and UTs made a proposition of making a law on real estate sector. This
was endorsed on further consultations by the central government and on
approvals by the Competition Commission of India, Tariff Commission, and
Ministry of Consumer Affairs2. Subsequently, in July 2011, the Ministry of Law
& Justice also suggested a central legislation in the real estate relying
on the power of the Parliament given in the Concurrent List3. On getting the
Union Cabinet approval, the Real Estate Bill was introduced in Rajya Sabha on
4th August 2013. Finally, it came into force in the year 2016, when both Rajya
Sabha and Lok Sabha passed it on 10th and 15th March respectively. Further, the
President gave his assent to the Bill ten days later, thus making it an
enforceable law.

 

Objectives of the Act

This Act is passed to curb the above-mentioned
malpractices, 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 information
between both the promoter and the purchaser;

d.) bring accountability of the promoters
towards the purchasers;

e.) ensure a transparent and efficient sale in
this sector

f.) bring a balance of responsibility between
both the parties;

g.) bring uniformity, professionalism, and
standardization in different business transactions and practices in this
sector; and

h.) lastly, to establish a mechanism for
fast-track dispute resolution.

PRE RERA Period Laws

As mentioned earlier, the ambit of real
estate is too broad so it attracts the provisions of manifold statutes. Hence,
before the Act, the real estate regime was regulated by numerous legislations
like the Indian Contract Act, 1872, the Transfer of Property Act, 1882, Urban
Land (Ceiling and Regulation) Act, 1976, and the Registration Act, 1908. Some
of the significant ones are:

The Consumer Protection Act, 1986: It was after the amendment8 that ‘housing
construction’ was brought under the purview of service under this act.

Therefore, if a buyer is dissatisfied with the housing services and facilities
provided by a promoter, he can approach the redressal mechanism established
under this Act. The Consumer Protection Act, 1986 was inadequate in three ways
while dealing with real estate. Firstly, the route laid here is remedial and
not punitive or detrimental. Secondly, it lacked standardization which avoids a
uniform and a healthy growth in the real estate sector. Thirdly, since, the
consumer forums handle all kinds of consumer disputes so they are clogged, and
their disposition takes a very long time. It is noteworthy that the Act doesn’t
bar the jurisdiction of Consumer Forums. Also, any person whose complaint is
pending before any forum established under the Consumer Protection Act, 1986, on
or before the commencement of this Act, may, with the permission of such Forum,
withdraw the complaint pending before it and file an application before the
adjudicating officer under this Act.

Land Acquisition Act, 1894: Here,

(a.) the appropriate government or;

(b.) a society registered under Societies
Registration Act, 1860 or;

(c.) a cooperative society registered
under the Co-operative Societies Act, 1912 can acquire any immovable property
for the public purpose by issuing a notification in the Official Gazette.

The Specific Relief
Act, 1963: Under this Act, any person who is lawfully entitled to possession of a
specific immovable property may recover it within the limitation period of 6
months. Where decree for specific performance of a contract for the sale has
been passed and the purchaser, within the period determined by the decree, does
not pay the purchase money

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