Why States Must Embrace Tech Platforms to Sharpen RERA Compliance

The Real Estate (Regulation and Development) Act (RERA), 2016, was enacted to safeguard homebuyers against the uncertainties and opacities of India’s real estate sector. At its core, RERA enforces transparency and accountability, ensuring that developers register their projects, disclose key details, and adhere to timelines and quality standards. By mandating project registration under Section 3(1), the law closes loopholes that once enabled unscrupulous practices, effectively shifting the power balance in favour of the homebuyers.

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Much like how a financial auditor scrutinizes company books, RERA acts as a vigilant watchdog, requiring developers to register projects, maintain separate escrow accounts, and adhere to strict timelines. The Act's provisions, such as the requirement to deposit 70% of project funds into escrow accounts and stringent penalties for delays, shield buyers from financial exploitation and delayed possession. Analogous to consumer protection frameworks in other industries, RERA ensures that real estate transactions are not a gamble but a secure investment.

However, RERA's armor has some chinks including uneven state-level implementation and limited public awareness. States can fully protect the interests of homebuyers only when they strengthen enforcement mechanisms and sharpen oversight and compliance with RERA.

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Navigating the Challenges in RERA Compliance

Ensuring compliance with RERA, 2016, poses significant challenges for states, stemming from uneven implementation and limited public awareness. While RERA was designed to bring transparency and accountability to a historically opaque sector, its success depends on effective enforcement at the state level—a responsibility many states struggle to fulfill.

For instance, several states have diluted RERA’s provisions by introducing state-specific rules that undermine the Act’s intent. This inconsistency creates loopholes, allowing unscrupulous developers to bypass accountability. Additionally, a lack of trained personnel and technological infrastructure hampers timely project registration and grievance redressal. It's akin to having a stringent traffic law but insufficient traffic police to enforce it—rules exist, but adherence remains optional.

Public awareness further compounds the problem. Many homebuyers are unaware of their rights under RERA, leaving them vulnerable to exploitation. Even when buyers file complaints, the resolution process is often slow, diminishing trust in the system.

To bridge these gaps, states must strengthen enforcement mechanisms, invest in robust digital platforms, and launch awareness campaigns to educate stakeholders. Without these measures, RERA risks becoming a paper tiger—strong in design but weak in execution—leaving the very homebuyers it seeks to protect exposed to market uncertainties. The solution rests on well-designed digital platforms- they can enable states track compliance with RERA, reducing the need for manual oversight. A centralized data repository can ensure real-time access to project data while digital records can facilitate audit trail and improve accountability.

How CSM Tech Transformed RERA Compliance in Odisha

CSM Tech has designed an immersive digital platform that can be handy for states to strengthen their RERA compliance. This comprehensive digital solution taps emerging tech to ensure high performance in compliance management and dispute resolution. We have a case of successful implementation for the Odisha Real Estate Regulatory Authority (ORERA). Before onboarding our solution, ORERA faced a multitude of challenges-

Delays and errors caused by analogue processes
No tools for future market forecasting
Insufficient protection for the rights of home buyers
Unstructured and scattered data storage
Inefficient project management and monitoring system
Lack of a structured complaint management system.

The revamped version of the ORERA web portal brought in a host of benefits:

Online complaint filing and acknowledgement
Online account for tracking cases, automated conciliation process
End-to-end grievance redressal experience
Periodic notifications and alerts on mail
Project development progress alerts on SMS and email
Online hearing schedule and notifications
Improved property search and home buying experience
Suo Moto registration of complaints
Advance reporting tools to monitor compliance

Moving ahead, we are looking to upgrade our Real Estate Compliance Management System by leveraging Machine Learning (ML) to forecast market trends, aiding in strategic decision-making for projects and investments. ML models offer data-backed insights for more efficient and informed regulatory actions. We plan to deploy chatbots to provide continuous support, guiding citizens through RERA processes. Plans are also afoot to utilize AI to automate document checks, speeding up approvals and minimizing errors.

CSM Tech's transformative RERA solution is a game-changer, setting a benchmark in compliance and governance. By embracing such disruptive solutions, states can revolutionize real estate regulation, ensuring transparency, efficiency, and homebuyer trust. Odisha’s success story is a compelling Call to Action—it's time for other states to leap forward and secure their real estate future.

AUTHOR:

Jayajit Dash

Senior Manager- Corporate Communications (Marketing)