Commerce and Industry Minister Piyush Goyal, in a candid revelation, shared a frustrating experience that will hit home for many buyers: in 2010, he couldn’t move into his own fully furnished house because the project hadn’t received an occupancy certificate.
Speaking at the Credai-NATCON event in Sydney, he said, "Despite my home being ready by the end of 2012, I couldn’t enter it for nearly five to six years because it lacked an occupancy certificate." His words echo the struggles many homebuyers have faced—being stuck in limbo, unable to take possession of properties they’ve paid for.
This uncertainty, as Goyal pointed out, was once commonplace in India’s real estate sector. Buyers would find themselves at the mercy of developers and incomplete legal paperwork, leaving their investments tied up for years.
"That was the level of uncertainty that buyers used to face," Goyal explained. However, he noted that the landscape has shifted significantly with the introduction of the Real Estate (Regulation and Development) Act (RERA) in 2016, which he believes has brought much-needed transparency and accountability. "I am delighted that RERA has changed all of this," he added.
RERA, which mandates developers to obtain critical documents like occupancy and completion certificates before handing over possession, has been a game-changer. The occupancy certificate is a vital legal document that certifies a building’s compliance with local laws and ensures it is safe for residents to occupy. Without it, buyers can’t legally move into their homes, and they face hurdles in accessing basic utilities like water and electricity.
Worse, homes without this certificate can be labeled illegal structures, leading to potential legal action.
Goyal highlighted that RERA has not only made developers more accountable but has also helped weed out dishonest players from the market. "We now have a much more honest regime, and a lot of unscrupulous developers are out of the system. Bankers are also gaining confidence in financing the sector," he said.
For buyers, this regulatory shift has been crucial in ensuring their investments are safer than ever before. Goyal’s personal ordeal serves as a stark reminder of how the real estate sector once operated and underscores the significant strides made since RERA’s implementation.
As the minister emphasized, buyers today are far less likely to face the kinds of delays and uncertainty that plagued his own home-buying journey.