Recent Development In The Real Estate Sector

The lack of transparency and inefficiency in the real estate sector has created a demand for the proper vigilance mechanism. To address this concern, the Government of India brought a change in the legislation as well as implementation of specialized regulator through the enactment of the Real Estate (Regulation and Development) Act, 2016 ("Act") on May 1, 2016 which has come into full force from May 1, 2017. The Act provides that appropriate state government shall establish Real Estate Regulatory Authority to regulate and promote the state's / Union Territory's real estate sector. RERA rules have so far been notified by 18 states and Union Territories.

The Act focuses primarily on promoting the timely completion of projects and maintaining the consistency by regulating the sale in real estate sector. It further provides for establishing an adjudicating mechanism for speedy dispute redressal through Real Estate Appellate Tribunal ("REAT") to hear appeals from the