The Real Estate (Regulation and Development) Act, 2016 was passed by the Rajya Sabha on 10th March, 2016 and by the Lok Sabha on 15th March, 2016. The Bill passed by Parliament was assented to by the President on 25th March, 2016.
Section 2, sections 20 – 39, sections 41 – 58, sections 71 – 78 and sections 81 – 92 notified for commencement with effect from 1st May, 2016.
Sections 3 to 19, section 40, sections 59 to 70, sections 79 to 80 notified for commencement with effect from 1st May, 2017.
The landmark legislation Real Estate (Regulation and Development) Act, 2016 (RERA), marking the beginning of a new era in the Indian real estate sector and a step towards reforming the real estate sector in India, encouraging greater transparency, citizen centricity, accountability and financial discipline.
The core objective of this transformative legislation is to ensure regulation and promotion of real estate sector in an efficient and transparent manner and to protect the interest of home buyers.
The Real Estate Act makes it mandatory for each state and union territory, to form its own regulator and frame the rules to govern the functioning of the regulator.
Real estate projects need to be registered with State Real Estate Regulatory Authority. Promoters cannot book or offer these projects for sale without registering them. Real Estate Agents dealing in these projects also need to register with Real Estate Regulatory Authorities.
70% of the collected amount from buyers must be deposited in an escrow bank account for construction of that project only and the withdrawals have to be certified by Architects, CA and Project Engineers.
Benefits under the Real Estate (Regulation and Development) Act, 2016 to Consumers:
The Act helps to curb black money . It makes operations transparent – project information will be available – promoting informed choice for buyers. The Disclosure of ‘Carpet Area’ for sale curbs the unfair trade practices.
“Agreement for Sale Rules" has ended the one-sided agreements and Buyer exploitation in the sector.
Fast track dispute resolution mechanism through Real Estate Regulatory Authority and Appellate Tribunals across Country.
Provision of equal rate of interest to be paid by the promoters and buyers, in case of default or delays thus brining equity in operations.
Benefits under the Real Estate (Regulation and Development) Act, 2016 to Developers:
The Act eliminates fly-by-night operators from the sector promoting genuine developers. It infuses credibility by making the sector mature and transparent.
Channelize investment into the sector.
Act/Rules would restore investment sentiment of consumers.
Regulatory mechanism will increase the confidence of the financial institutions in real estate sector.
Proper regulatory mechanism of the Act will increase foreign investment (FDI, ECB) in the real estate sector.
THE BUILDING AND OTHER CONSTRUCTION WORKERS ACT, 19961
An Act to regulate the employment and conditions of service of building and other construction workers
and to provide for their safety, health and welfare measures and for other matters connected therewith or
incidental thereto.[19th August, 1996]
Be it enacted by Parliament in the Forty-seventh year of the Republic of India as follows:
1. Short title, extent, commencement and application:-
(1) This Act may be called the Building and
Other Construction Workers‘ (Regulation of Employment and Conditions of Service) Act, 1996.
(2) It extends to the whole of India.
(3) It shall be deemed to have come into force on the 1st day of March, 1996.
(4) It applies to every establishment which employs, or had employed on any day of the preceding twelve
months, ten or more building workers in any building or other construction work.
Explanation: For the purposes of this sub-section, the building workers employed in different relays in a
day either by the employer or the contractor shall be taken into account in computing the number of building
workers employed in the establishment.
2. Definitions:- (1) In this Act, unless the context otherwise requires-
(a) "Appropriate Government" means:
(i) In relation to an establishment (which employs building workers either directly or
through a contractor) in respect of which the appropriate Government under the
Industrial Disputes Act, 1947 (14 of 1947), is the Central Government, the Central
(ii)In relation to any such establishment, being a public sector undertaking, as the
Central Government may, by notification, specify which employs building workers
either directly or through a contractor, the Central Government;
Explanation: For the purposes of this sub-clause (ii)"public sector undertaking" means any corporation
established by or under any Central, State or Provincial Act or a Government company as defined in section
617 of the Companies Act, 1956 (1 of 1956), which is owned, controlled or managed by the Central
In relation to any other establishment which employs building workers either directly
or through a contractor, the Government of the State in which that other
establishment is situate;
"Beneficiary" means a building worker registered under section 12;
"Board"means a Building and Other Construction Workers‘ Welfare Board constituted under
sub-section (1) of section 18;
"Building or other construction work" eans the construction, alteration, repairs,
maintenance or demolition, of or, in relation to, buildings, streets, roads, railways, tramways,
airfields, irrigation, drainage, embankment and navigation works, flood control works
(including storm water drainage works), generation, transmission and distribution of power,
water works (including channels for distribution of water), oil and gas installations, electric
lines, wireless, radio, television, telephone, telegraph and overseas communications, dams,
canals, reservoirs, watercourses, tunnels, bridges, viaducts, aquaducts, pipelines, towers,