Builder refusing RERA registration details? Here’s what homebuyers should do
The Enforcement Directorate has issued a strong warning to homebuyers regarding builders who deny access to RERA information. It is crucial for buyers to confirm a project's registration and necessary approvals prior to any financial commitment. The agency highlighted that demands for cash and the absence of documents are significant red flags.
The Enforcement Directorate (ED) has issued a warning to homebuyers about builders who refuse to share Real Estate Regulation and Development Authority (RERA) registration details. This warning follows the ED's provisional attachment of assets worth Rs 129.80 crore from an Ahmedabad-based real estate company suspected of fraudulent activities targeting homebuyers.
RERA, enacted in 2016, is designed to safeguard homebuyers by promoting transparency and establishing a regulatory framework for resolving disputes in real estate transactions. Under Section 3 of the law, most projects need to be registered, with exceptions for certain small projects. It is crucial for buyers to verify the RERA registration, statutory approvals, title documents, and encumbrance details before making any payments, according to the ED.
To check a project's RERA registration, buyers can visit the state-level RERA portal. For instance, the Uttar Pradesh RERA website allows users to search for registered projects and promoters, and verify the RERA registration status. Buyers should compare the official information with the documents and claims provided by the builder before making any substantial payments.
If a builder refuses to provide RERA details, it could be a serious warning sign of potential fraud. Even if the project is exempt from registration, buyers should still stop further payments, verify the project's registration, approvals, title documents, and encumbrance records, and keep all receipts and communications as proof. Builders demanding cash upfront, withholding documents, delaying registrations, failing to refund money, or guaranteeing buybacks are all red flags identified by the ED.
Buyers who continue to face such issues can approach the state RERA authority or other relevant authorities to seek redressal. It is essential for buyers to be cautious and vigilant while dealing with real estate transactions to avoid falling prey to fraudulent builders and protect their investments.
Written by urgent.news from Times of India's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
