Regulatory Framework on Property & Real Estate in India

The Indian real estate sector is governed by a comprehensive legal framework designed to ensure transparency, protect consumers, and regulate market practices. Key regulations include:

• The Societies Registration Act, 1860:
  This act governs the registration of societies, including cooperative housing societies and property management associations. It provides a framework for the formation and operation of societies, ensuring that members can collectively manage and maintain properties. The act lays down the legal structure for governing documents, meetings, and elections, promoting democratic management of societies.
• The Indian Contract Act, 1872:
  This foundational legislation provides the legal framework for contracts in India, including those pertinent to real estate transactions. It defines essential concepts such as offer, acceptance, consideration, and breach of contract, ensuring that agreements are enforceable in a court of law. Specific sections of this act address contracts relating to the sale of immovable property, laying down guidelines for the rights and obligations of parties involved.
• The Transfer of Property Act, 1882:
  This act governs the transfer of property by defining the legal framework for the sale, mortgage, lease, exchange, and gift of immovable property. It outlines the rights and duties of both buyers and sellers, ensuring lawful and transparent transactions. The act also provides essential guidelines for various types of property transfers, including those involving conditional transfers and future interests.
• The Registration Act, 1908:
  This act mandates the registration of certain property transactions, such as the sale, lease, or transfer of immovable property, with the relevant authorities. Registration ensures the legal recognition of property documents, preventing disputes and establishing title authenticity. The act specifies the documents that require registration, the procedures for registration, and the penalties for non-compliance.
• The Environment (Protection) Act, 1986:
  This act provides a framework for environmental protection during land use changes and real estate development. It empowers the central government to take measures for protecting and improving the environment, setting standards for emissions, discharge, and waste management. Developers must comply with environmental clearances before commencing construction activities, ensuring that land development does not compromise ecological integrity. This legislation highlights the importance of sustainable development in real estate projects.
• The Benami Transactions (Prohibition) Act, 1988:
  This act prohibits benami transactions, which are property transactions where the real owner is not disclosed. The law mandates that all property transactions must clearly identify the beneficial owner, thereby reducing the chances of fraud and illegal asset accumulation. Violation of this act can lead to the confiscation of property and penalties for involved parties.
• The Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996:
  This act regulates the employment and working conditions of construction workers involved in building projects. It provides guidelines for workers’ safety, health, and welfare measures, including the establishment of welfare boards for financial assistance. The act also mandates the registration of construction workers and the payment of certain benefits, ensuring that labour rights are upheld in the construction industry.
• The Land Acquisition, Rehabilitation and Resettlement Act, 2013:
  This act replaces the 1894 law and aims to regulate the acquisition of land by the government while ensuring fair compensation, rehabilitation, and resettlement for affected persons. It establishes a clear procedure for land acquisition and mandates that consent must be obtained from landowners for certain types of projects. The act also emphasizes the social impact assessment of projects to minimize adverse effects on local communities. It seeks to provide a more humane approach to land acquisition in India.
• The Real Estate (Regulation and Development) Act, 2016 (RERA):
  RERA was introduced to enhance transparency and accountability in the real estate sector, primarily focusing on the rights of homebuyers. It mandates the registration of real estate projects and agents with state-level regulatory authorities, ensuring that developers comply with regulations. The act requires builders to provide clear information about project approvals, timelines, and financial records, thereby protecting buyers from fraud and delays. RERA also establishes a mechanism for the redressal of grievances, promoting consumer confidence in real estate transactions.
• Goods and Services Tax (GST) Act, 2017:
  The GST Act streamlines taxation related to the sale of under-construction properties, incorporating various indirect taxes into a single taxation system. It covers the supply of goods and services involved in real estate projects, enhancing clarity and efficiency in tax compliance. By simplifying the tax structure, GST aims to reduce the overall cost of real estate transactions.

STATE-SPECIFIC REGULATIONS:

Each state in India has its own rules and guidelines for property registration, stamp duty, and land use.

• Rajasthan-Specific Real Estate and Land Laws

1. Rajasthan Land Acquisition Act, 1953: Although repealed by the LARR Act, 2013, this act previously governed land acquisition for public purposes in Rajasthan. Certain provisions may still apply to ongoing projects, ensuring fair compensation and rehabilitation for affected landowners.
2. Rajasthan Colonization Act, 1954: This act governs land allotment and management for establishing new colonies or townships in Rajasthan. It regulates land use in government-established colonies and addresses the rights of settlers.
3. Rajasthan Agricultural Lands Utilization Act, 1954: This act regulates the utilization of agricultural land, ensuring that land is used for its intended agricultural purpose. It aims to prevent the diversion of agricultural land for non-agricultural activities without proper permission.
4. The Rajasthan Tenancy Act, 1955: This legislation regulates the relationship between landlords and tenants in agricultural land, protecting tenant rights and governing aspects like rent, land use, and tenancy transfers. It also provides legal safeguards against eviction and compensation for crops.
5. The Rajasthan Land Revenue Act, 1956: This act governs land revenue administration, including assessment, collection, and management of land revenue in Rajasthan. It establishes revenue courts for resolving land disputes and ensures proper maintenance of land records.
6. Rajasthan Urban Improvement Trust Act, 1959: This act facilitates urban planning and development in Rajasthan’s cities and towns by establishing Urban Improvement Trusts (UITs). UITs oversee land acquisition, infrastructure development, and the implementation of urban improvement projects.
7. Rajasthan Housing Schemes (Land Acquisition) Act, 1960: This legislation facilitates land acquisition for housing schemes in Rajasthan. It outlines procedures for acquiring land necessary for developing residential projects, ensuring timely and fair compensation to affected landowners.
8. Rajasthan Land Reforms & Acquisition of Landowners’ Estates Act, 1963: This act aims to reform land ownership patterns and regulate the acquisition of landowners’ estates. It focuses on equitable land distribution and provides guidelines for compensation and rehabilitation of affected persons.
9. Rajasthan Housing Board Act, 1970: This act establishes the Rajasthan Housing Board, responsible for developing affordable housing projects. It governs residential development and the sale of housing units, particularly in urban areas, ensuring access to housing.
10. Rajasthan Gram Dan Act, 1971: This act facilitates the voluntary transfer of land by landowners to the government for public purposes, such as development projects and community welfare. It aims to encourage community development by allowing local bodies to utilize land for communal benefits while ensuring fair compensation to landowners.
11. Rajasthan Ceiling on Agricultural Holdings Act, 1973: This act limits the amount of agricultural land an individual or family can hold. Excess land is acquired by the government and redistributed to landless or small farmers, promoting equitable land distribution.
12. Rajasthan Land Development Corporation Act, 1975: This act establishes the Rajasthan Land Development Corporation, which promotes land development projects and infrastructure improvements in the state. It focuses on enhancing agricultural productivity and sustainable land management practices.
13. Jaipur Development Authority (JDA) Act, 1982: This act governs urban planning and development projects within Jaipur city. The JDA oversees land acquisition, residential and commercial zone development, and establishes building regulations to ensure organized urban growth.
14. Rajasthan Urban Areas (Permission for Use of Agricultural Land for Non-Agricultural Purposes) Act, 1992: This act regulates the conversion of agricultural land for non-agricultural purposes in urban areas. It ensures that such conversions comply with urban planning and zoning regulations.
15. Rajasthan Stamp Act, 1998: This act governs the payment of stamp duty on property transactions in Rajasthan. It applies to the sale of immovable property, mortgages, leases, and other property-related transactions, ensuring legal recognition of documents.
16. Rajasthan Rent Control Act, 2001: This legislation regulates landlord-tenant relationships in urban areas, providing protections against unfair eviction and setting guidelines for rent increases. It aims to balance the rights of both landlords and tenants.
17. Rajasthan Municipalities Act, 2009: This act regulates the administration of municipal areas, addressing land use, construction, and urban development. It provides a framework for establishing municipal authorities responsible for property taxation and local governance.
18. Rajasthan Apartments (Ownership) Act, 2015: This act governs the ownership and management of apartment buildings and residential complexes. It outlines procedures for forming apartment owners’ associations and establishing guidelines for the use of common areas.
19. Rajasthan Land Pooling Scheme Act, 2016: This act provides a framework for land pooling in urban areas to facilitate planned development. It allows landowners to pool their lands for infrastructure projects while ensuring compensation and benefits for the participants.
20. Rajasthan Urban Land (Certification of Titles) Act, 2016: This Act was enacted to establish a system for the certification of land titles in urban areas of Rajasthan to simplify the process of land title certification, providing a clear framework for verifying ownership and resolving disputes related to land titles. The Act outlines the procedures for the registration of land titles, including the necessary documentation and the roles of authorities involved in the certification process.