INTRODUCTION: The Real Estate (Regulation and Development) Act, 2016 (hereinafter referred to as 'RERA' or 'Act') got the presidential assent on March 25, 2017. The Act is applicable throughout the country, however, is not applicable in the state of Jammu & Kashmir.
NEEDS OF RERA: The need for RERA was arises due to following reasons:
1. No proper information about the builders
2. Lack of remedies available to the buyers
3. Lack of transparency in projects
4. No value for Commitments from the builders
5. Poor track record of timely deliveries
6. Fund diversions
7. Poor quality of work
8. Improper litigation conduct
In order to diminish the above problems, the Act was designed to achieve the following objectives:
1. to establish the Real Estate Regulatory Authority for regulation and promotion of the real estate sector;
2. to ensure sale of plot, apartment or building, as the case may be, or sale of real estate project, in an efficient and transparent manner;
3. to protect the interest of consumers in the real estate sector;
4. to establish an adjudicating mechanism for speedy dispute redressal;
5. to establish the Appellate Tribunal to hear appeals from the decisions, directions or orders of the Real Estate Regulatory Authority and the adjudicating officers and for matters connected therewith or incidental thereto.
UNDERSTANDING RERA: RERA has given immense opportunity to the practicing professionals such as Chartered Accountants, following were the stake holders under RERA
1. Promoters
2. Real estate Agent;
3. Real estate project.
4. Allottees
Professionals can assist in –
Discussion with promoters to conceive the project and compliances there on
Helps promoters to arrive at the project cost, which is mandatory filed in filing application for registration of Real estate project
Assist in registration of Real estate project with RERA Authorities
Issuance of first time CA certificates for on-going project
Issuance of CA certificates on withdrawal of money from RERA Project Bank account in % of completion
Rera Annual Audit under the Act and issuance of Audit Report by practicing Chartered Accountants
Section 56 gives legal authorization to the Chartered Accountants to act as a Legal representative of promoter or Real estate agent under the Act. Following are the opportunities provided under the Act to Chartered Accountants, Cost and Management Accountants, Advocates and Company Secretaries:
- To present the case before the Appellate Tribunal or the Regulatory Authority or the adjudicating officer;
- Drafting of Reply to show cause notice; appeal etc.;
- Assisting client in respect of filing of application for registration under the Act;
- Preparing up-to-date list regarding number and types of apartments or plots, garages booked;
- Assisting client in taking approvals which are pending subsequent to commencement certificate;
- Assisting client in obtaining completion certificate or the occupancy certificate;
- Assisting client in obtaining the lease certificate and any other certificates as and when required;
- Assisting client in preparing various documents, agreement and deed from time to time;
- Help in maintaining web page and providing information as are required to be mentioned on that web page;
- Providing consultancy/opinion with respect to various transaction under RERA and other laws;
- Provide assistance with regard to any other information and documents as may be demanded by the Authority;
- Valuation of projects under RERA.
CONCLUSION
RERA is very interesting to read and it provides a fascinating field to the professionals like chartered accountants to impart their expertise in order to assist Promoters, Allottees as well as to Real Estate Agents.
A good and strong step has been taken by the government to curb black money and it will be interesting to know the way forward after some time in various states.
