RERA or the Real Estate Regulatory Authority is a governing body established to regulate the real estate sector in India. It aims to protect home buyers, bring transparency and accountability in real estate transactions. In Gurgaon, RERA Haryana oversees compliance of real estate projects according to the Real Estate (Regulation and Development) Act, 2016.

Key impacts and benefits of RERA in Gurgaon:

Accountability

RERA makes developers accountable for timely completion of projects as per the specifications and quality standards promised to buyers. Failure to do so can lead to penalties and legal action. This reduces risks for buyers.

Transparency

Developers must disclose project details on the RERA portal including approvals, layouts, price lists, delivery timelines, etc. This enables buyers to review projects comprehensively before investing. There is little scope for ambiguity or misleading information.

Standardization

RERA has set guidelines for uniform practices related to property measurements (carpet area, etc.), sales agreements, delay penalties, escrow accounts, etc. This standardization protects consumer interests and simplifies understanding of different projects.

Grievance redressal

RERA has mechanisms to address grievances from buyers and developers. Complaints can be filed online or in writing to be resolved through mediation and conciliation. RERA can issue orders for specific performance and penalties where needed. This channel for dispute resolution reduces costly legal battles.

Restricted fund diversion

RERA mandates that 70% of funds collected from buyers be used only for construction of that project. This limits fund diversion by developers to other purposes and ensures projects get completed. Buyers also have greater assurance that their investments will not be misused.

Reduced malpractices

Strict code of conduct, heavy penalties for violations and constant monitoring have reduced fraudulent practices like pre-launch offers, misleading advertisements, unilateral changes to plans, delayed possessions, etc. This weeds out unscrupulous developers and benefits compliant ones.

Improved investments

With greater accountability, transparency and protection, RERA boosts confidence among buyers and investors. This results in higher sales volumes, improved cash flows for reputed developers and an overall revival in Gurgaon real estate. Investments that were on hold due to the lack of regulation now see greater activity.

While RERA aims to improve the real estate sector in Gurgaon, it does add to costs and legal requirements for developers. Delays in approvals and complex rules can hamper business. Buyers also need to exercise caution since errant developers still exist, and RERA cannot eliminate all risks or malpractices in the property market. Constant vigilance and due diligence remain advisable.

So RERA has brought positive change to real estate in Gurgaon, but cooperation between developers, buyers and authorities is needed to achieve its objectives.