Housing ministry asks RERAs to list extensions to delayed projects
Real Estate (Regulation and Development) Act, 2016 (RERA)
Background
Enacted by: Parliament of India
Came into force: 1 May 2017 (after notification on 26 March 2016)
Implemented by: Ministry of Housing and Urban Affairs (MoHUA)
Aim: To regulate the real estate sector, increase transparency, protect homebuyers, and promote accountability.
Current Status
RERAs established in all States and UTs except Nagaland.
Projects registered: Over 1.51 lakh.
Agents registered: Over 1.06 lakh.
Complaints resolved: Around 1.47 lakh disposed of by RERAs.
Objectives of RERA
To protect the interests of homebuyers and ensure timely delivery of projects.
To bring transparency in real estate transactions.
To establish Real Estate Regulatory Authorities (RERAs) in every State/UT.
To ensure accountability of builders and developers.
To promote fairness between buyers and promoters.
To reduce project delays and fraud in the housing sector.
To establish an Appellate Tribunal for grievance redressal.
Key Provisions of RERA Act, 2016
1. Establishment of Authorities
Section 20: Each State/UT must establish a Real Estate Regulatory Authority (RERA).
Section 43: Establishment of Real Estate Appellate Tribunal (REAT) for appeals.
2. Registration of Projects & Agents
Section 3:
Mandatory registration of real estate projects before advertisement or sale.
Applies to projects with land area ≥ 500 sq. meters or ≥ 8 apartments.
Section 9:
Registration of real estate agents mandatory.
3. Escrow Account Provision
Section 4(2)(l)(D):
Promoters must deposit 70% of project funds in a separate escrow account.
Funds can be used only for construction and land cost.
4. Project Timelines & Delays
Section 18:
If the promoter fails to complete the project on time, the buyer can:
Withdraw with full refund + interest, OR
Continue with the project and receive compensation for delay.
5. Disclosure & Transparency
Promoters must disclose:
Project plans, approvals, completion schedule, and updates on the RERA website.
Quarterly progress reports to RERA.
Buyers can access all project details online.
6. Penalties
Section 59: Failure to register a project → up to 10% of project cost fine.
Section 60: False information → up to 5% of project cost fine.
Section 64: Non-compliance → imprisonment up to 3 years or fine.
7. Dispute Resolution
Section 31: Any aggrieved person (buyer, promoter, agent) can file a complaint to RERA.
Section 43: Appeals lie before the Real Estate Appellate Tribunal (REAT).
Structure of RERA
Level | Authority | Function |
Central | Ministry of Housing & Urban Affairs | Policy oversight & coordination |
State/UT | State RERA Authority | Registration, monitoring, grievance redressal |
Appellate | Real Estate Appellate Tribunal | Appeals against RERA orders |
Recent Developments
RERAs established in all States/UTs except Nagaland.
Over 1.5 lakh projects and 1 lakh agents registered.
Around 1.47 lakh complaints disposed by RERAs.
SoP (Standard Operating Procedures) being developed (2025) to bring uniformity and efficiency in RERA functioning.
Nation-wide database proposed for project tracking and transparency.
Important Pointers
RERA Act enacted in 2016, came into full effect in May 2017.
Applies to both residential and commercial real estate projects.
RERA registration mandatory before advertising or selling property units.
70% funds to be deposited in escrow account to prevent fund diversion.
Project delay compensation is a legal right of the buyer.
Each RERA must publish project and agent details online for public access.
Real Estate Appellate Tribunal (REAT) handles appeals against RERA decisions.
Penalties include fines and imprisonment for non-compliance.
RERA promotes cooperative federalism —implemented by States/UTs, guided by the Centre.
RERA has significantly contributed to consumer protection and regulatory governance in housing.
Prelims Practice MCQ
Q. Consider the following statements regarding the Real Estate (Regulation and Development) Act, 2016 (RERA):
The Act aims to regulate the real estate sector and ensure transparency in project marketing and execution.
Every real estate project above 500 square meters or having more than 8 apartments must be registered with RERA before advertisement or sale.
RERA authorities have the power to impose penalties but cannot revoke project registration.
The Act provides for the establishment of a Real Estate Appellate Tribunal for dispute redressal.
Which of the statements given above are correct?
(a) 1, 2 and 4 only ✅
(b) 1 and 3 only
(c) 2, 3 and 4 only
(d) 1, 2, 3 and 4
Explanation:
Statements 1 and 2 are correct - these are core provisions of the Act.
Statement 3 is incorrect - RERA can impose penalties and revoke registration in cases of violation.
Statement 4 is correct - the Act establishes an appellate tribunal for dispute resolution.