Monitoring of Real Estate Project Progress by RERA
Sejal Gupta, Deepika Jha | 2023
Prior to the Real Estate (Regulation and Development [R&D]) Act, 2016, the real estate sector faced accountability and discipline issues, especially regarding project cancellations, delays in project delivery and changes in project plans without informing allottees. The Act mandated developers to update regular information on the financial and structural progress of the project, and its provisions were supported by state rules. This policy brief reviews the efficacy of such publicly-available information regarding the progress of a real estate project in five select states. It then suggests recommendations on how this project progress information can be better managed and analysed.
It was observed that several builders do not update project progress information and thus deny homebuyers an avenue to track whether their project is likely to be delivered on time. Real Estate Regulatory Authorities (RERAs) need to ensure regular updation of project details for improved transparency. Some good practices regarding interpretation and display of this project information on RERA websites can be adapted in other states. It is recommended that RERAs should also monitor the progress of the project and ensure that any red flags in progress are spotted early, without loss of homebuyers’ precious time.