Question

What type of initiative has been taken by the Real Estate Regulatory Authority (RERA) in the affordable housing sector?

• A. There is no role of RERA in affordable housing sector
• B. It permits only qualified property developers to take up affordable housing projects
• C. It mandates certain measures to improve transparency and accountability
• D. It is responsible for project and financial management of all affordable projects taken up by private builders

Hint:

RERA is primarily a Regulator. Its core purpose is to protect consumers and improve market trust by enforcing transparency, accountability, and project delivery timelines.

Answer 1

The Correct Option is C

Concept: The *Real Estate (Regulation and Development) Act of 2016* established RERA to address systemic market asymmetric information, protect individual consumers from project construction delays, and minimize fraudulent defaults by developers. RERA functions as a market regulator rather than a direct developer or financial manager. Step-by-step Explanation:
• Analysis of Option (A): Affordable housing developments must register under RERA if they exceed baseline size thresholds. RERA provides consumer protection mechanisms across all market segments, making this option false.
• Analysis of Option (B): While RERA registers developers, it does not act as an exclusive gatekeeper that dictates which private firms can build affordable housing based on discretionary qualifications.
• Analysis of Option (C): RERA requires all developers to publish verified project details on a public portal, including land titles, approvals, and construction timelines. It also mandates that \(70%\) of consumer project funds be maintained in a dedicated escrow account to eliminate fund diversion. These measures improve consumer confidence, transparency, and accountability across the housing market, including the affordable sector.
• Analysis of Option (D): RERA provides regulatory oversight; it does not manage day-to-day operations, material procurement, or financial administration for private building projects. Consequently, RERA's contribution is its regulatory framework that enforces transparency and accountability.