Analysis Over The Real Estate (Regulation and Development) Act, 2016 (RERA) and The Consumer Protection Act, 2019 (CPA)
The Real Estate (Regulation and Development) Act, 2016 (RERA) and The Consumer Protection Act, 2019 (CPA) are two important legal frameworks that have significant implications for the real estate sector in India. Both Acts aim to protect consumer interests and provide a mechanism for the redressal of grievances.
RERA Enactment
RERA was enacted by the Indian government with the aim of regulating and promoting transparency and fair practices in the real estate sector. Its key provisions include mandatory registration of builders, and disclosure of project details, including plans, layouts, carpet area, delivery schedule, and completion status. RERA also provides for the establishment of state-level regulatory authorities to oversee the implementation of the law within their respective states. Analysis Consumer & RERA Act
Read Also: Unregistered Project Also Falls Under RERA Jurisdiction
One of the main objectives of RERA is to prevent fraud and cheating in the real estate industry by ensuring timely deliveries, providing refunds in cases of defaults or delays, and enforcing strict quality control parameters. This has been welcomed by homebuyers who have often been left in a lurch due to delays and incomplete properties. Analysis Consumer & RERA Act
Consumer Act Enactment
On the other hand, CPA is a comprehensive legislation that seeks to protect consumer rights across all sectors. The Act has repealed the earlier Consumer Protection Act 1986 which had become outdated over time. CPA 2019 provides various measures to safeguard consumers from unfair trade practices such as misleading advertisements, defective goods, and services, overcharging or supply of sub-standard goods/services, etc.
Also Read: Consumer Protection Council
CPA establishes new institutions such as Central Consumer Protection Authority (CCPA), State Consumer Protection Authorities (SCPAs), and District Consumer Dispute Redressal Commissions (DCDRCs) besides the creation of an e-filing platform for consumer complaints. It introduces stricter penalties, including imprisonment and fines for offenses related to product adulteration and spurious products. The Act aims to promote ease of filing complaints by increasing accessibility through digital platforms alongside physical methods.
In conclusion, both RERA and CPA represent significant legislative strides toward consumer protection in India. By providing greater accountability and transparency in the real estate sector.
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