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Homebuyers Seek Solace in the Supreme Court’s Decision on RERA Rule Implementation in States

The Forum for People’s Collective Efforts (FPCE), the apex body representing homebuyers, expects the implementation of realty law RERA to improve in light of the Supreme Court’s recent directive to the Centre to examine the rules framed by states and determine whether they serve the interests of consumers.

The Supreme Court instructed the Centre last month to investigate if the guidelines created by various states under the Real Estate (Regulation and Development) Act, 2016 (RERA) are in accordance with the central law and serve the interests of homebuyers.

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A bench of Justices D Y Chandrachud and Surya Kant instructed the Centre for three months to assess if there are any differences between the regulations drafted by the states and those formulated by the Centre in 2016 and to submit a report by the first week of May 2022.

When approached, FPCE president Abhay Kumar Upadhyay stated that despite five years of full implementation, RERA has yet to achieve anything close to its original goal.  As per him, the primary reason for this is that the states charged with its implementation did not follow any uniformity in their general real estate regulations and procedures for agreement for sale.

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Builders, on the other hand, took full advantage of this, according to the head of the group, and the fear of RERA catching them disappeared.

Most significantly, he argued, this verdict will shatter most builders’ perception that they are above the law or that they can take the law for granted.

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