Real Estate (Regulation and Development)

Act, 2016
From Wikipedia, the free encyclopedia
Real Estate (Regulation and
Development) Act, 2016

An Act to establish the Real Estate Regulatory

Authority for regulation and promotion of the real
estate sector and to ensure sale of plot, apartment of
building, as the case may be, or sale of real estate
project, in an efficient and transparent manner and to
protect the interest of consumers in the real estate
sector and to establish an adjudicating mechanism for
speedy dispute redressal and also to establish the
Appellate Tribunal to hear appeals from the
decisions, directions or orders of the Real Estate
Regulatory Authority and the adjudicating officer and
for matters connected therewith or incidental thereto.
Citation No. 16 of 2016
Enacted by Parliament of India
Date passed 15 March 2016
Date passed 10 March 2016
Date assented to 25 March 2016
Date signed 25 March 2016
01 May 2016 (59 of 92 sections
Date
notified)
commenced
01 May 2017 (remaining)
Legislative history
Real Estate (Regulation and
Bill
Development) Bill, 2016
Bill citation XLVI-C of 2013
Bill published
14 August 2013
on
 Dr. Girija Vyas, Minister of
Introduced by Housing and Urban Poverty
Alleviation
Standing Committee Report
Committee
report
Select Committee Report
Status: In force

The Real Estate (Regulation and Development) Act, 2016 is an Act of the Parliament of
India which seeks to protect home-buyers as well as help boost investments in the real estate
industry. The Act establishes Real Estate Regulatory Authority (RERA) in each state for
regulation of the real estate sector and also acts as an adjudicating body for speedy dispute
redressal. The bill was passed by the Rajya Sabha on 10 March 2016 and by the Lok Sabha
on 15 March 2016. The Act came into force on 1 May 2016 with 59 of 92 sections notified.[1]
Remaining provisions came into force on 1 May 2017.[2] The Central and state governments
are liable to notify the Rules under the Act within a statutory period of six months.

History
Real Estate Regulatory Authority (RERA) Bill was introduced by the Indian National
Congress government in 2013.[4] In December 2015, the Union Cabinet of India had
approved 20 major amendments to the bill based on the recommendations of a Rajya Sabha
committee that examined the bill.[5] The Bill had been referred to a select committee, which
had given its report in July 2015.[6] However, Congress, Left and AIADMK had expressed
their reservations on the report through dissent notes.[6] The bill got approval of the Rajya
Sabha on 10 March 2016 and by the Lok Sabha on 15 March 2016.[7][8]

Functioning
What is a Real Estate Regulatory Authority (RERA)? What are my options if I decide
to pursue this option?

Under a new law, states have to establish Regulatory Authority (RERA) which is a special
body dealing with the real estate sector. Here’s what you need to know about the law with
respect to your particular problem:

 Compulsory registration of new and ongoing projects - All builders and developers
have a duty to register their new and ongoing projects with the Regulatory Authority.
o Please remember that this duty extends to projects which are currently going
on as well. They have to complete this by the end of July 2017. However, if
the builder or developer has already obtained the completion certificate, they
do not have a duty to register their project under this law.
o They are not required to register projects which are very small - if the area of
the land which is going to be developed is less than 500 square meters and the
number of apartments is less than eight. This exemption might differ from
state to state.
 Once the registration is granted by the Regulatory Authority, the builder or developer
has to publish entire details of their projects on the website of the Regulatory
 Authority. The registration is valid for the period indicated in the project application
as the time required for completion of the project. Once this period is over, the
Regulatory Authority has a right to revoke the registration granted for this project.
 If the builder or developer has not handed over the property by the date mentioned in
your agreement for sale or if the registration granted by the Regulatory Authority has
been suspended or revoked, you have the right to withdraw from the project.
 If you choose to withdraw from the project, you have the right to be compensated for
the full amount you have paid till date along with interest. You get this right as soon
as the date has passed - you do not have to file a complaint or case at this point. The
developer and/or builder is supposed to compensate you as soon as you make the
request.
 If you choose not to withdraw from the project, you have the right to be compensated
with interest for every month of delay. The exact interest amount will differ from state
to state and depend on the state regulations issued.
 If the builder or developer is not voluntarily compensating you, you have the right to
file a complaint before the Regulatory Authority. Each state Regulatory Authority is
supposed to appoint an officer who performs the functions of a judge. She will
conduct an inquiry and pass an order once she has decided whether you are actually
supposed to get the interest or money spent.
 You need not compulsorily hire a lawyer to represent yourself. You can appear
yourself or even hire a chartered accountant or cost accountant or company secretary.
 If you are not satisfied with the decision of the officer, you can file an appeal before
the Appellate Tribunal set up under this law within 60 days. Every state is supposed to
have one such appellate tribunal.

Every state and union territory is supposed to have such an authority and an appellate
tribunal. Since this is a very recent law (important provisions came into force on May 1,
2017) and a number of states have not yet set up authorities, you will need to check if the
state in which the property is located has set up the Regulatory Authority and Appellate
Tribunal to see if this option is available in the first place.

What is the time period within which the Regulatory Authority is required to dispose
the complaint?

The new law states that the Regulatory Authority should endeavour to dispose of the
complaints within 60 days from the date of filing. However, the Authority can take more time
and is only required to record the reasons for not completing the proceeding within the 60 day
period.

If there is a Regulatory Authority set up in my state, can I still approach a civil court or
file a writ petition before the High Court?

No, if the Regulatory Authority has been set up in your state, you cannot file a case before a
civil court or file a civil writ petition before the High Court. Recently, some High Courts
have in fact been directing those who file civil writ petitions before it to approach the
Regulatory Authority in that state. However, since this is a very new law and some states may
not have set up a regulatory authority, you might still have the option of filing a civil case.[1]

Is there a time limit in which RERA must grant an application

RERA must grant/reject an application within 30 days of submission of all required
documents. [2]

Provisions
Registration

The Real Estate Act makes it mandatory for all commercial and residential real estate projects
where the land is over 500 square metres, or eight apartments, to register with the Real Estate
Regulatory Authority (RERA) for launching a project, in order to provide greater
transparency in project-marketing and execution. For ongoing projects which have not
received completion certificate on the date of commencement of the Act, will have to seek
registration within 3 months. Application for registration must be either approved or rejected
within a period of 30 days from the date of application by the RERA. On successful
registration, the promoter of the project will be provided with a registration number, a login
id, and password for the applicants to fill up essential details on the website of the RERA. For
failure to register, a penalty of up to 10 percent of the project cost or three years'
imprisonment may be imposed.[7] Real estate agents who facilitate selling or purchase of
properties must take prior registration from RERA Consultants. Such agents will be issued a
single registration number for each State or Union Territory, which must be quoted by the
agent in every sale facilitated by him.[9]

Protection of buyers

The Act prohibits unaccounted money from being pumped into the sector and as of now 70
per cent of the money has to be deposited in bank accounts through cheques is now
compulsory.[10] A major benefit for consumers included in the Act is that builders will have to
quote prices based on carpet area not super built-up area, while carpet area has been clearly
defined in the Act to include usable spaces like kitchen and toilets.[7]

Real Estate Regulatory Authority and Appellate Tribunal

It will help to establish state-level Real Estate Regulatory Authorities (RERAs) to regulate
transactions related to both residential and commercial projects and ensure their timely
completion and handover.[10] Appellate Tribunals will now be required to adjudicate cases in
60 days as against the earlier provision of 90 days and Regulatory Authorities to dispose of
complaints in 60 days while no time-frame was indicated in earlier Bill.[10]

RERA Rules
The Act under S.84[11] contemplates that within 6 months of the RERA Act being enforced,
State Governments shall make rules for carrying out the provisions of the Act. The said Rules
are to be notified by the respective State Government.

As late as October 31, 2016, Central Government, released the Real Estate (Regulation and
Development) (General) Rules, 2016, vide Notification by the Ministry of Housing & Urban
Poverty Alleviation(HUPA).[12] The Rules so issued by the Central Government are
applicable to the five Union Territories without Legislature viz., Andaman & Nicobar
Islands, Dadra & Nagar Haveli, Daman & Diu, Lakshadweep, and Chandigarh. The Rules
have been issued after the prior release of Draft for comments.[13]

As of 1 February 2018, states like Kerala, West Bengal, and the North-Eastern States have
not notified the Rules.

Implementing states

Date of
State/UT Rules Website
notification
29 October
Gujarat [3] http://gujrera.gujarat.gov.in/
2016
11 October
Uttar Pradesh [4] http://www.up-rera.in/
2016
31 October
Chandigarh [5]
2016
Dadra and Nagar 31 October
[6] http://maharera.mahaonline.gov.in/
Haveli 2016
Andaman and 31 October
[7] http://www.tnrera.in/
Nicobar Islands 2016
31 October
Lakshadweep [8]
2016
31 October
Daman and Diu [9] http://maharera.mahaonline.gov.in/
2016
22 October
Madhya Pradesh Rules http://rera.mp.gov.in/
2016
24 November
Delhi [10] http://dda.org.in/rera/index.aspx
2016
Maharashtra 19 April 2017 [11] https://maharera.mahaonline.gov.in/
Andhra Pradesh 28 March 2017 [12] http://rera.ap.gov.in/RERA/Views/Home.aspx
25 February
Odisha [13]
2017
Bihar 1 May 2017 [14] https://nagarseva.bihar.gov.in/rerabihar/
Rajasthan 1 May 2017 [15] http://rera.rajasthan.gov.in/
Jharkhand 18 May 2017 [16] http://rera.jharkhand.gov.in/
Uttarakhand 28 April 2017 [17] http://125.19.208.162:8088/rerauk/
Tamil Nadu 22 June 2017 [18] http://www.tnrera.in/index.php
Karnataka 10 July 2017 [19] http://rera.karnataka.gov.in/
Punjab 8 June 2017 [20] http://rera-punjab.gov.in/
Chattisgarh 26 April 2017 [21]
Haryana 28 July 2017 [22]
Assam 6 May 2017 [23]
Telangana 4 August 2017 [24]
 Date of
State/UT Rules Website
notification
28 September
Himachal Pradesh [25] http://www.hprera.in/
2017
24 November
Goa [26] https://rera.goa.gov.in/
2017
27 October
Tripura [27]
2017
Puducherry 18 July 2017 [28]

External Links
 RERA for Buyers
 RERA details in different states
 State-wise RERA Rules

References
1.

 Commencement Notification
  "Realty projects, brokers have to be registered with regulatory authorities by July 31".
Economic Times. Retrieved 20 April 2017.
  "Real Estate Bill is an act now, may protect home buyers". Economic Times. Retrieved 2
May 2016.
  "Rahul Gandhi assures home buyers of a strong Real Estate bill", The Economic Times,
3 March 2016
  "Will press for Real Estate Bill in Rajya Sabha, says Rahul Gandhi", The Economic
Times, 5 March 2016
  "Modi government puts real estate bill on priority list to pass it in Budget session", The
Economic Times, 27 February 2016
  "Lok Sabha takes up real estate bill, Congress assures support", The Economic Times,
15 March 2016
  Sharma, Ravi Teja (15 March 2016). "Cheer for home buyers! After Rajya Sabha, real
estate regulatory bill cleared by Lok Sabha as well". Economic Tilmes. Retrieved 20 March
2016.
  "RERA consultant services in india - reraconsultant". RERA Consultant. Retrieved
2017-07-17.
  "Big cheer for homebuyers! Rajya Sabha passes Real Estate Bill", The Economic Times,
10 March 2016
  http://mhupa.gov.in/writereaddata/Real_Estate_Act_2016.pdf, page 34
  http://pib.nic.in/newsite/PrintRelease.aspx?relid=153141

13.  http://mhupa.gov.in/writereaddata/Draft_Rules-seeking-comments.pdf

14. RERA Approved Projects

15. RERA Legal Solutions

16. CA Certificates and Architect Services

[hide]

 v
 t
 e

Indian legislation
 Constitution of India (amendments)
 Indian Penal Code
 Code of Criminal Procedure, 1973
 Acts of the Parliament
 Ordinance

In Force
 Real Estate (Regulation and Development) Act, 2016
 Consumer Protection Act, 1986
Consumer  Essential Commodities Act
 Essential Services Maintenance Act

 Benami Transactions (Prohibition) Act, 1988

 Black Money (Undisclosed Foreign Income and Assets) and
Imposition of Tax Act, 2015
 Prevention of Corruption Act, 1988
Corruption  The Lokpal and Lokayuktas Act, 2013
 Mines and Minerals (Development and Regulation) Act, 1957
 Prevention of Money Laundering Act, 2002
 Whistle Blowers Protection Act, 2011

 Armed Forces (Special Powers) Act

 Armed Forces Tribunal Act, 2007
 Arms Act, 1959
 Army Act, 1950
 Criminal Law (Amendment) Act, 2013
 Cigarettes and Other Tobacco Products Act
Criminal  Indian Evidence Act
 Juvenile Justice (Care and Protection of Children) Act, 2015
 National Security Act (India)
 Protection of Women from Domestic Violence Act, 2005
 Scheduled Caste and Scheduled Tribe (Prevention of Atrocities)
Act, 1989

 Indian Institutes of Management Act, 2017

Education  Institutes of Technology Act, 1961
 National Institutes of Technology Act, 2007
  Right of Children to Free and Compulsory Education Act, 2009
 University Grants Commission Act, 1956

 Air (Prevention and Control of Pollution) Act

 Biological Diversity Act, 2002
 CAMPA bill
 Environment Protection Act, 1986
 Indian Forest Act, 1927
Environment
 National Green Tribunal Act
 Prevention of Cruelty to Animals Act
 Protection of Plant Varieties and Farmers' Rights Act, 2001
 Wildlife Protection Act, 1972

 Aadhaar (Targeted Delivery of Financial and other Subsidies,

benefits and services) Act, 2016
 Banking Regulation Act, 1949
 Conservation of Foreign Exchange and Prevention of Smuggling
Activities Act
 Depositories Act
 The Electricity Act, 2003
 Expenditure Tax Act, 1987
 Finance Act (India)
 Fiscal Responsibility and Budget Management Act, 2003
 Foreign Contribution Regulation Act
 Foreign Exchange Management Act
 Geographical Indications of Goods (Registration and Protection)
Act, 1999
Financial  Government Securities Act, 2006
 Indian Contract Act, 1872
 Indian Stamp Act, 1899
 Insolvency and Bankruptcy Code, 2016
 Insurance Act, 1938
 Negotiable Instruments Act, 1881
 Securities Laws (Amendment) Act, 2014
 Securitisation and Reconstruction of Financial Assets and
Enforcement of Security Interest Act, 2002
 The Competition Act, 2002
 The High Denomination Bank Notes (Demonetisation) Act, 1978
 The Income-tax Act, 1961
 Transfer of Property Act 1882
 Urban Land (Ceiling and Regulation) Act, 1976

 Central Council of Homoeopathy Act, 1973

 Clinical Establishments (Registration and Regulation) Act, 2010
 Dentist Act
Healthcare  Drugs and Cosmetics Act, 1940
 Drugs and Magic Remedies (Objectionable Advertisements) Act,
1954
 Indian Medical Council Act
  Mental Health Act, 1987
 Narcotic Drugs and Psychotropic Substances Act, 1985

 Bonded Labor System (Abolition) Act, 1976

 Factories Act,1948, India
 Industrial Disputes Act, 1947
 Interstate Migrant Workmen Act 1979
 Maternity Benefit (Amendment) Act, 2017
Labour  Minimum Wages Act 1948
 National Rural Employment Guarantee Act, 2005
 Sexual Harassment of Women at Workplace (Prevention,
Prohibition and Redressal) Act, 2013
 Unorganised Workers' Social Security Act 2008

 Hindu Adoptions and Maintenance Act (1956)

 Majority Act (India)
 Hindu Minority and Guardianship Act
 Hindu Succession Act, 1956
Personal
 Special Marriage Act, 1954
 The Hindu Marriage Act, 1955
 The Muslim Women (Protection of Rights on Divorce) Act 1986

 Child Labour (Prohibition and Regulation) Act

 Indecent Representation of Women (Prohibition) Act
 National Food Security Act, 2013
 Pre-Conception and Pre-Natal Diagnostic Techniques Act, 1994
Social  The Prohibition of Child Marriage Act, 2006
 The Scheduled Tribes and Other Traditional Forest Dwellers
(Recognition of Forest Rights) Act, 2006
 Street Vendors Act, 2014

 Anti-Superstition and Black Magic Act

 The Bombay Prohibition Act, 1949
 Bombay Prohibition (Gujarat Amendment) 2009
 Chhattisgarh Food Security Act, 2012
State Laws
 Maharashtra Control of Organised Crime Act
 The Gujarat Local Authorities Laws (Amendment) Bill, 2009
 Puducherry Prevention of Anti-Social Activities Act

 Andhra Pradesh Reorganisation Act, 2014

 Bihar Reorganisation Act, 2000
 Madhya Pradesh Reorganisation Act, 2000
State
 Punjab Reorganisation Act, 1966
Reorganisation
 States Reorganisation Act, 1956
 Uttar Pradesh Reorganisation Act, 2000

 Unlawful Activities (Prevention) Act

Terrorism
  Aircraft Act
 Motor Vehicles Act, 1988
 National Waterways Act, 2016
Transportation  Inland Vessels Act
 Metro Railways Act, 1978
 Metro Railway Act, 2002

 Chartered Accountants Act, 1949

 Companies Act 2013
 Gram Nyayalayas Act, 2008
 Indian Trusts Act, 1882
Organisation /  Panchayats (Extension to Scheduled Areas) Act 1996
Body  Reserve Bank of India Act, 1934
 The Indian Partnership Act, 1932
 Societies Registration Act, 1860
 The Limited Liability Partnership Act, 2008

 Repealing and Amending Act, 2015

 Repealing and Amending (Second) Act, 2015
 Repealing and Amending Act, 2016
Repeal
 Repealing and Amending Act, 2017
 Repealing and Amending (Second) Act, 2017

 All India Services Act, 1951

 Delimitation Act
 Enemy Property Act, 1968
 Information Technology Act, 2000
 Nuclear Liability Act
 Official Secrets Act (India)
Other  Representation of the People Act, 1951
 Right to Fair Compensation and Transparency in Land Acquisition,
Rehabilitation and Resettlement Act, 2013
 Right to Information Act, 2005
 State Emblem of India (Prohibition of Improper Use) Act, 2005
 The Foreigners Act, 1946

Repealed
 Age of Consent Act, 1891
 Caste Disabilities Removal Act, 1850
 Criminal Tribes Act
Pre-
 Hindu Widows' Remarriage Act, 1856
Independence
 English Education Act 1835
 Prevention of Seditious Meetings Act, 1907

 Anti-Copying Act, 1992

Post-  Foreign Exchange Regulation Act
Independence  Gift Tax Act, 1958
 Illegal Migrants (Determination by Tribunal) Act, 1983
  Interest Tax Act, 1974
 Maintenance of Internal Security Act
 Prevention of Terrorism Act, 2002
 Terrorist and Disruptive Activities (Prevention) Act
 The Gold (Control) Act, 1968
 Wealth Tax Act, 1957

Bills