Consumer, The New King - Real Estate (Regulation And Development) Act 2016

Introduction

Real estate sector in India has lacked transparency, accountability, investor protection, and efficient handovers for long. On March 25, 2016, the President of India gave assent to the Real Estate (Regulation and Development) Act 2016 (hereinafter referred as "the Act"), thereby paving the way for the much needed regulation of the sector.

Credibility of the real estate sector is presently at an all-time low due to unprecedented delays in construction and completion of projects, diversion of investor funds to other projects, failure to handover completed properties, arbitrary increase in the super built up area and consequent levy of additional charges, unreasonable one sided contracts, reluctance to pay even the minimal delay penalty by promoters, etc. The Act regulates the hitherto unregulated real estate sector to plug the glaring gaps between consumer protection and abuse of power by the real estate lobby. Through this new Act, the Government has