Consider the following statements regarding the Real Estate Regulatory Authority (RERA):

1. RERA is a statutory body established under the Real Estate (Regulation and Development) Act, 2016 to regulate the real estate sector and protect homebuyers.

2. Promoters can advertise and sell real estate projects without registering them with RERA, as long as they obtain all necessary government approvals.

Which of the statements given above is/are correct?

The correct answer is option 1.

In News

• The Supreme Court recently criticized the functioning of RERA, stating that it has failed to effectively regulate the real estate sector and protect homebuyers. The court also noted concerns about the lack of uniform enforcement across states.

Key Points

• RERA is a statutory body created under the Real Estate (Regulation and Development) Act, 2016 to ensure transparency, accountability, and consumer protection in the real estate sector. Hence, Statement 1 is correct.
• Registration with RERA is mandatory before advertising, marketing, or selling real estate projects above 500 sq. meters or eight apartments. Promoters cannot sell projects without RERA registration, even if they have obtained other government approvals. Hence, Statement 2 is incorrect.

Additional Information

• RERA authorities exist at the state level to regulate real estate projects within their jurisdiction.
• Builders must deposit 70% of the funds collected from buyers in an escrow account to ensure project completion.
• Penalties include imprisonment of up to three years for non-compliance with RERA regulations.
• Real Estate Appellate Tribunals handle disputes arising from RERA decisions.