The Real Estate Regulation and Development Act (RERA) of 2016 is crucial for NRIs investing in Indian real estate. RERA enhances transparency by requiring developers to register projects and provide detailed information on approvals and completion dates. Additionally, NRIs must comply with the Foreign Exchange Management Act (FEMA), which permits them to buy residential and commercial properties, but not agricultural land. 

How RERA Protects NRIs From Real Estate Fraud

The Real Estate Regulation and Development Act (RERA) has introduced several measures to safeguard NRIs investing in Indian real estate from fraudulent practices:

1. Developers must register their projects with RERA and provide detailed information on approvals, plans, and timelines on the official website. This transparency allows NRIs to make informed decisions and verify claims made by developers.
2. RERA mandates the use of standardised sale agreements that clearly outline crucial details like payment schedules, possession timelines, and other key terms. NRIs can carefully review these agreements before signing to avoid any discrepancies.
3. Developers are required to sell properties based on carpet area, which is the net usable floor area. This prevents the practice of quoting built-up or super built-up areas to hike prices, which was common before RERA.
4. Developers face penalties for delays in project completion beyond the declared timelines. This protects NRIs from financial losses and ensures projects are delivered as promised.
5. RERA provides a framework for faster resolution of disputes between buyers and developers in a fair and transparent manner. NRIs can seek redressal for any grievances through the regulatory authority.
6. The act empowers buyers with rights like demanding refunds or penalties for delays. Developers cannot make changes to approved plans or demand more than 10% deposit without buyer consent, providing additional protection to NRIs.
7. Funds from buyers must be held in escrow accounts, preventing mismanagement and ensuring that money is used for project development

What Are The Steps To Take If A Developer Delays A Project? 

If a developer delays a project, NRIs can take several steps to seek redress:

1. The first step is to approach the Real Estate Regulatory Authority (RERA) in the respective state. NRIs can file a complaint against the developer for delays and seek compensation or a refund along with interest for the period of delay.
2.  NRIs can issue a legal notice to the developer, citing the delay and requesting timely possession or a refund.
3. If RERA does not resolve the issue, NRIs can approach the National Consumer Disputes Redressal Commission (NCDRC) or local consumer courts depending on the property value. This allows them to claim compensation for the delay.
4. If the situation is severe, initiating insolvency proceedings against the developer under the Insolvency and Bankruptcy Code may be an option.

These steps provide a structured approach for NRIs to address delays and protect their investments in Indian real estate.