The Real Estate (Regulation and Development) Act, 2016 provides for establishing regulatory authorities at the state level to register residential real estate projects and seeks to regulate contracts between buyers and sellers in the real estate sector to ensure sale of plot, apartment or building, etc. in an efficient and transparent manner. It also proposes to ensure greater accountability towards consumers, and significantly reduce frauds and delays as also the current high transaction costs. By imposing certain responsibilities on consumers and promoters, it attempts to balance the interest of both. It seeks to establish ease of information between the promoter and purchaser, high level of transparency of contractual conditions, set minimum standards of accountability and a fast track dispute resolution mechanism.
The real estate sector plays a vital role in fulfilling the need and demand for housing and infrastructure development in the India. While this sector has grown rapidly in recent years, it has been largely unregulated, though in India there is state apartment act, with the absence of professionalism and standardization. The lack of adequate consumer protection mechanism resulted in exploitation and profiteering by unscrupulous builders. Thus, the Real Estate Act will protect the interest of buyers and also give much-needed impetus to the sector.