By Abhay Jindal

Since the Real Estate (Regulation and Development) Act, 2016 (RERA) took effect, much has changed in the Indian real estate sector. RERA has established a more rigorous definition of the rules intended to enhance transparency, accountability, and consumer protections. RERA has made it an obligation to ensure quality of construction and mitigates risks of contractor error. This is demonstrated with legislations on the Defect Liability Period (DLP) as well as contractor due diligence.

Defect Liability Period: A Five-Year Assurance of Quality

As stipulated in Section 14(3) of RERA, the Defect Liability Period obliges developers to rectifying structural defects and deficiencies in workmanship for five years from the date of possession. It is a legal responsibility that guarantees home purchasers receive a product that is of a quality level promised and contains no major mechanical or construction defects like sizeable cracks, leaks, or deterioration of materials.

If the developer fails to resolve within the timelines specified, typically this provides the buyer the right to compensation and additional disclosure to regulators. The Defect Liability Period suggests the commitment to liability and dealers commitment to quality, inducing builders to satisfy more stringent construction expectations and follow-up for remediation.

The Critical Role of Contractor Due Diligence

Whether required by statute or not, the matter of construction quality and oversight compliance is bigger than the stipulated defect liability period. A key aspect of risk reduction is ensuring due diligence has been undertaken in the selection and management of contractors and that there is transparency in managing contractor relations through the life of the project. Contractors or subcontractors have an important position in the actual delivery of projects, and so the learning and assessing of training and experience, financial status, and compliance with quality must be completed before you hire contractors or subcontractors. 

Ongoing oversight during the delivery phase covers proactive potential errors and defects by observing workmanship, confirming materials, and confirming compliance with approved plans, reduces the potential for errors and defects translating to liability and payment under RERA.

Transparency and Reporting: Gaining Confidence among Stakeholders

It is backed by the emergence of greater transparency where state authorities increasingly make periodic quality assurance certifications and transparent reporting mandatory, inspiring trust among developers, contractors, and homebuyers. The cultural shift toward accountability equips stakeholders with timely information that makes identification of emerging issues easier, and it facilitates quick remedial action. This is also a step in bringing the industry in line with global best practices, which exist in most luxury real estate markets, where flawless construction quality is uncompromising and risk management goes hand in hand with brand reputation.

A Framework for Sustainable Growth in Luxury Real Estate

Integrating these facets creates a governance framework that balances statutory enforcement with operational rigor. Developers who are willing to allocate time to conduct proper strategic contractor due diligence, and implement RERA’s defect liability measures, deepen the firm’s commitment to quality and buyer protection. In the luxury housing market, which relies on astute purchasers considering first, visual excellence, and second, structural quality and longevity, this is a key current trend shaping a lasting industry market sustainability.

Dual Focus for Defect-Free Construction and Minimal Risk

In a nutshell, the path to achieving standout, quality residential construction with lower regulatory risk relies on two core commitments: RERA’s Defect Liability Period provisions and strong contractor vetting and relationship management to manage buildings’ condition and performance. Together, these two priorities will lead the real estate market to provide high-quality homes that can stand up to enhanced scrutiny without sacrificing quality.

Both initiatives reaffirm the credibility of the market and its contractor capabilities, culminating in a stronger buyer and market confidence. As regulations continue to evolve and the industry continues to adopt quality assurance measures, the context for high-end Indian homes will deliver more accountability, sophistication, and confidence.

(The author is Managing Director, Homeland Group. Views are personal)