Ahead of Union Budget 2024 RERA resolves 1.25 lakh complaints: Economic Survey 2023-24

As per the report till July 1, 2024, nearly 1.25 lakh cases were resolved and 1.3 lakh real estate projects registered under RERA, according to Economic Survey 2023-24.

The 2023-24 Economic Survey which was tabled by Union Finance Minister Nirmala Sitharaman in the Parliament on July 22, mentioned that, a total of 1,24,947 cases were settled by Real Estate Regulatory Authorities of various states as of July 1, 2024.

According to the Economic Survey 2022-23, this figure stood at over 1.06 lakh, indicating under 19,000 real estate project disputes were resolved during the financial year 2023-24. 

The figure of over 1.06 lakh real estate project disputes resolved during the financial year 2023-24 was reported in the Economic Survey 2022-23, showing that less than 19,000 disputes were settled.

The survey revealed that, with the exception of Nagaland, all states and union territories in India have established rules under the Real Estate (Regulation and Development) Act, 2016. Nagaland is currently working on finalizing these rules.

“As of July 1, 2024, 32 states and UTs have created the Real Estate Regulatory Authority, and 124,947 complaints have already been resolved,” the document noted.

The Real Estate (Regulation and Development) Act, 2016 was introduced to enhance transparency, citizen focus, accountability, and financial discipline in the real estate sector in India. It requires each state or UT to set up a real estate regulatory authority and to register real estate projects and agents with this regulatory body.

The survey also noted that after the enactment of RERA in 2016, India was ranked 36th in the Global Real Estate Transparency Index in 2022.

The latest survey reveals that during the 2023-24 fiscal year, over 30,000 real estate projects and 16,947 property agents were registered under RERA in various states and union territories.

The survey highlighted, “As of July 1, 2024, more than 1,30,186 real estate projects and 88,461 agents have been registered under RERA,”.

Before RERA, many developers failed to deliver homes despite full payments from buyers. RERA addresses this by mandating that 70% of funds collected from homebuyers be kept in a separate bank account for project construction and land costs, the survey added.

RERA mandates that developers disclose all project details, including permissions, launch dates, delivery schedules, specifications, and amenities. It also protects homebuyers by ensuring only RERA-registered projects (over 500 square meters or eight apartments) can be launched, preventing misrepresentation by developers, the survey noted.

The Economic Survey 2023-24 highlighted the recovery of the Indian real estate sector post-COVID-19 and projected a positive outlook for the future.