The objective of the RERA Act is to protect the interests of the colonizers as well as allottees in the real estate sector. Till the year 2016, the allottees had to approach civil and consumer courts against the colonizer to fight for their rights. RERA rule came into force in Madhya Pradesh from 2017. These have been made more consistent with partial reforms in the year 2021.
Secretary RERA Neeraj Dubey has told that land is important in the cost of the project, so the colonizer gets the benefit of the cost of land and the expenditure incurred for project approval. These provisions are already there in the rules.
The opening of the account in the name of the project is the most important point of the Act. Seventy percent of the amount received from the allottees is deposited in this account. This amount is deposited so that if the colonizer does not complete the project work on time, then RERA can use this amount to complete the work. Recently spent 70 percent of the project amount which was about Rs 80 crore in this account by a big colonizer of Bhopal for non-project purpose.
RERA has imposed a fine of about Rs 4.50 crore against the concerned colonizer in this case. In addition, the registration of the project has also been cancelled.
On the one hand while RERA expects work from the colonizer as per rules, on the other hand it also bears the responsibility of protecting the interests of the allottees. Show cause notices have been issued in 41 cases this year. With this move of RERA, where the allottees will get protection, at the same time he can take the decision not to register in guilty colonizers new projects.