Real Estate (Regulation and Development) Act (RERA)

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Union Minister for Housing and Urban Affairs recently complimented the distance traversed in implementing RERA and its success stories.

About Real Estate (Regulation and Development) Act (RERA):

  • It is an act passed by the Indian Parliament in 2016 for the regulation and promotion of the real estate sector in the country.
  • This Act establishes a Real Estate Regulatory Authority (RERA) in every state to regulate the real estate sector and serve as the adjudication body to enable quick resolutions.
  • The act applies to all under-construction projects with a plot size above 500 sq. m or projects with 8 apartments or more;
  • Salient Provisions:
    • Establishment of a fast-track mechanism for settlement of disputes. This will be done via an appellate tribunal and dedicated adjudicating officers.
    • All real estate projects must be registered with RERA so that the authority will have jurisdiction over the projects. 
    • In case a promoter wishes to transfer or assign a majority of your rights and liabilities in a real estate project to a third party, written consent from two-thirds of the allottees will be needed in addition to the written approval of RERA.
    • If a person has any problems regarding violation of the provisions or rules of this Act by a promoter, buyer, or agent, they can file a complaint with RERA.
    • While an enquiry is taking place, RERA can stop an agent, promoter, or buyer from continuing any activity against which a complaint has been raised.
    • If any of RERA’s decisions regarding a complaint is not satisfactory, the aggrieved party can submit an appeal before the Appellate Tribunal.
    • If the promoter fails to follow RERA’s orders, they will have to pay a penalty. This amount could be up to 5% of the evaluated cost of the property.
    • If the Appellate Tribunal’s orders are not complied with, a penalty will have to be paid. This can either be imprisonment for up to 3 years or a fine (up to 10% of the approximate cost of the project), or both.
    • If a company commits an offence under this ACT, any person who was in charge of the business at the time of the offence being committed and the company will be held guilty and will be punished.
    • No civil court will have any jurisdiction with respect to any matter that comes under RERA or the Appellate Tribunal’s jurisdiction. As such, no court can grant an injunction with regard to any action taken by RERA or the Tribunal.


Q1) What is the Real Estate Regulatory Authority (RERA)?

RERA stands for Real Estate Regulatory Authority came into existence as per the Real Estate (Regulation and Development) Act, 2016 which aims to protect the home purchasers and also boosts the real estate investments.

Source: “Much distance has been traversed in implementation of RERA, lot needs to be done” ~Shri Hardeep S. Puri