Since the establishment of the Real Estate Regulatory Authority (RERA), homebuyers’ rights have been better protected.
However, many loopholes in the law are still being exploited by real estate developers.
To address this, the homebuyers’ organization — Forum for People’s Collective Efforts (FPCE) — has demanded several amendments to strengthen RERA.
FPCE believes these changes will make the law stricter for builders and offer greater protection to homebuyers.
The organization has suggested that before allowing builders to launch new projects, there should be a system to verify their past performance and track record.
FPCE also wants a new rule added to ensure that if a builder fails to deliver promised amenities and facilities, the homebuyers must receive compensation.
Uniform Refund Rules and Stricter Action Against Builders
FPCE has also asked for uniform rules for refunds when homebuyers cancel their bookings.
Currently, refund policies differ from builder to builder, causing inconvenience and financial loss to buyers.
Abhay Upadhyay, President of FPCE and member of the Central Advisory Committee, has written to Union Housing
and Urban Affairs Minister Manoj Lal demanding key amendments to the Real Estate (Regulation and Development) Act, 2016.
He said builders are taking advantage of weaknesses in the current law, leading to injustice and fraud against homebuyers.
FPCE has urged the government to add a separate section in RERA that specifically penalizes builders for failing to fulfill their promises.
Proposal for Escrow Accounts and Better Oversight
FPCE also recommended that until the new law is passed, the ministry should issue a Standard Operating Procedure (SOP) to all RERA authorities.
This SOP would require builders to deposit enough funds into an escrow account to ensure the completion of projects.
Additionally, authorities should closely monitor compliance and verify the builder’s reputation and project history before granting approval for any new development.
These steps, FPCE believes, will help prevent project delays and protect the interests of homebuyers more effectively.
