RERA Registration

RERA stands for the Real Estate (Regulation and Development) Act, 2016. It was enacted to address long-standing grievances in the Indian real estate sector — primarily project delays, fund diversion by developers, lack of transparency in project disclosures, and absence of a fast-track dispute resolution mechanism for homebuyers. The Act created independent state-level Regulatory Authorities and Appellate Tribunals, mandated project and agent registration, and introduced the 70% escrow obligation to prevent cross-project fund diversion.

Under Section 3 of RERA, every promoter must register a real estate project before advertising, marketing, booking, selling, or offering for sale any plot, apartment, or building where (a) the area of land proposed to be developed exceeds 500 square metres, or (b) the number of apartments proposed to be developed exceeds 8. Either threshold independently triggers registration. Both conditions must be absent for the exemption to apply.

Yes. Section 3(2)(b) of RERA required all ongoing projects that had not received a completion certificate or occupancy certificate as on 1 May 2017 to register with the relevant state Authority within three months — i.e., by 31 July 2017. Promoters who failed to register by that date are in continuing violation and should file a belated application immediately, as the violation compounds daily.

Section 4(2)(l)(D) of RERA requires that a promoter deposit 70% of all amounts realised from allottees — whether by way of booking advances, installments, or any other charge — into a dedicated bank account maintained specifically for that project. The funds in this account can only be used for land cost and construction cost of that project. Withdrawals require simultaneous certification from the project Architect, a registered Engineer, and a Chartered Accountant that the withdrawal is proportionate to the percentage of completion.

Section 2(zk) of RERA defines 'promoter' broadly. It includes any person who constructs or causes to be constructed an independent building, including apartments, for sale; any person who develops land into a project; any development authority or public body that sells plots or apartments; any apex State Level Co-operative Housing Finance Society; and any other person who acts himself as a builder, coloniser, contractor, developer, estate developer, or by any other name or claims to be acting as the holder of a Power of Attorney from the land owner — and even the purchaser of a plotted development for further sale.

Section 59 of RERA imposes a penalty of up to 10% of the estimated cost of the real estate project for non-registration. Where the violation continues or is wilful, Section 59(2) provides for imprisonment of the promoter for a term that may extend to three years, or a further fine of up to 10% of the estimated project cost, or both. These are not administrative penalties that can simply be paid and moved on — a conviction under this section affects the promoter's ability to register future projects and creates serious reputational and legal consequences.

Section 65 of RERA provides that a real estate agent who fails to obtain registration under Section 9 shall be liable to a penalty of ₹10,000 for every day during which the default continues — subject to a maximum of 5% of the cost of the plot, apartment, or building for which the services were rendered. Section 65(2) provides that if the default continues for a second time, the agent may be imprisoned for a term of up to one year, or fined, or both.

Section 5 of RERA requires the Authority to grant or reject an application within 30 days of receipt of a complete application. In practice, timelines vary significantly by state: MahaRERA is generally efficient with complete applications, often processing within 30–45 working days. UP-RERA and some other states have experienced longer queues. The practical timeline including document preparation, query resolution, and certificate issuance is typically 60–120 days from first engagement. Incomplete applications restart the clock.

Registration fees are set by each state Authority and vary by project type and size. Fees are typically calculated on the project's land area, number of units, or estimated project cost. For example, Maharashtra has a tiered fee structure for residential projects. Exact fee rates are published on each state RERA portal and are subject to change; PNPC calculates the applicable fee at the time of application using current state regulations rather than applying a generic figure.

No. Section 3 of RERA explicitly prohibits any advertising, marketing, booking, selling, or offering for sale of any plot, apartment, or building in a covered project before obtaining RERA registration. Even publishing a brochure or social media post about an unregistered project is a violation. Many developers unknowingly launch 'soft launches' or 'expressions of interest' campaigns before registration — these are not exempt from RERA's advertising prohibition.

No. Section 13 of RERA provides that a promoter cannot accept more than 10% of the apartment cost as an advance or application fee from a person who has applied for the apartment without first executing a written Agreement for Sale (AFS) and registering it. This is one of the most commonly violated provisions, particularly by developers who take 'expressions of interest' or 'token amounts' before formalising the AFS.

Section 11(1) of RERA requires every registered promoter to update the project registration details on the state RERA portal within three months of the end of each quarter (or as prescribed by the state Authority, which is commonly quarterly). Required updates include: current status of construction, number of apartments booked, number of apartments pending possession, amounts realised from allottees, amounts deposited into the escrow account, and any changes to the project specifications or timelines.

Every withdrawal from the dedicated RERA escrow account requires a certificate from the project's Chartered Accountant certifying that the withdrawal is in proportion to the percentage of completion of the project and is being used for land cost or construction cost. Concurrently, the project Architect must certify the percentage of completion and the Engineer must certify the structural progress. All three certificates are submitted to the bank before it releases the withdrawal.

Section 18 of RERA provides that if a promoter is unable to give possession of the apartment on the date committed in the Agreement for Sale (or as registered under RERA), the promoter must, if the allottee wishes to withdraw, refund the entire amount paid along with interest at the prescribed rate (typically SBI MCLR + 2% per annum). If the allottee does not wish to withdraw, the promoter is liable to pay the same interest rate on the pending amount for every month of delay until actual possession.

Yes, but through a formal process. Section 6 of RERA allows the Authority to extend the registration period of a project in cases of force majeure — defined to include war, flood, drought, fire, cyclone, earthquake, or any other calamity caused by nature. Additionally, Authorities have discretionary powers to grant extensions in genuine cases of construction delays. The promoter must apply for extension before the current registration expires. Extensions require payment of an additional fee and submission of documentary justification.

Section 9 of RERA requires every real estate agent to apply to the Authority for registration before facilitating sale or purchase of any plot or apartment in a registered project. The application requires: name and type of business, registered address, details of all real estate projects with which the agent is registered, PAN Card, Aadhaar/identity proof, and payment of the prescribed fee. Registration, once granted, is valid for the period prescribed by the state Authority (typically 5 years) and is renewable.

RERA agent registration can be obtained both in the name of an individual and in the name of a company or firm. Section 9 refers to 'real estate agent' which is defined to include an individual, organisation, company, or firm. When registration is in the name of a company, the authorised representative filing the application must be clearly identified and the company's constitutional documents (certificate of incorporation, MoA/AoA) must be submitted.

Yes. RERA's definition of 'real estate project' under Section 2(zn) covers both residential and commercial projects, including buildings intended solely for commercial use. The same Section 3 thresholds (500 sq.m. land area OR more than 8 units) apply. However, a building being constructed for the promoter's own use (not for sale) is generally not considered a 'real estate project' for RERA purposes, as the sale/allotment element is absent.

Section 4 of RERA lists extensive mandatory disclosures including: details of enterprise (legal status, address, promoters' names), brief details of previous projects (last 5 years), details and number of garages and open parking spaces, time period within which possession is to be offered, status of the title to the land with an authenticated copy, details of encumbrances, the sanctioned plan and layout plan, details of the proposed amenities, proforma of the allotment letter, AFS and conveyance deed, details of all pending litigation relating to the project, and CA-certified account details.

Section 84 of RERA empowers state governments to make rules, including prescribing the format of the Agreement for Sale. Most state Authorities (Maharashtra, Karnataka, UP, Rajasthan) have issued model AFS formats. The model AFS sets minimum terms including carpet area, possession date, maintenance obligations, interest on delay, and structural defect liability. Promoters can add additional terms but cannot delete or dilute the mandatory provisions.

Yes. Section 31 of RERA allows any aggrieved person — allottee, association of allottees, or any other person — to file a complaint with the Adjudicating Officer (for compensation) or directly with the Authority (for enforcement) against a promoter or agent. Remedies available include: directions to the promoter to deliver possession, refund of all amounts paid with interest, compensation for loss suffered, and penalties on the promoter. Section 40 also provides for recovery of interest, penalty, and compensation as arrears of land revenue — making RERA orders enforceable through revenue recovery machinery.

Section 43 of RERA provides for the establishment of a Real Estate Appellate Tribunal in each state. Any person aggrieved by an order or decision of the Authority or the Adjudicating Officer can appeal to the Appellate Tribunal within 60 days. The Appellate Tribunal is empowered to stay orders under appeal and must hear and dispose of appeals within 60 days (extendable with reasons). Orders of the Appellate Tribunal are final and binding, subject to challenge only before the High Court.

GST applicability to real estate is governed by the CGST Act 2017 and related notifications. For residential projects: under-construction apartments sold before the Completion Certificate (CC) attract GST — presently at 1% (affordable housing) or 5% (non-affordable residential) with effect from 1 April 2019, with the condition that Input Tax Credit (ITC) cannot be claimed at these concessional rates. Commercial under-construction property is taxed at 12% (ITC eligible). Completed units (after CC) are not subject to GST — they attract only stamp duty and registration charges.

Real estate developers are generally assessed under income tax on a 'project completion' basis — profits are recognised on completion of the project or substantial possession. Under the erstwhile Income-tax Act 1961, this area was governed by provisions such as Section 43CA (stamp duty value treated as deemed consideration where a developer transfers land or building held as stock-in-trade below stamp duty value), Section 50C (the equivalent deeming provision for land or building held as a capital asset), and Section 56(2)(x) (which taxes a purchaser on the difference where immovable property or other assets are acquired for consideration below stamp duty value or fair market value — a distinct anti-abuse provision, not to be confused with the 'angel tax' under the erstwhile Section 56(2)(viib), which was abolished for all classes of investors with effect from 1 April 2025). TDS on purchase of immovable property above ₹50 lakh (erstwhile Section 194-IA, at 1% of the sale consideration) also applies. With the Income Tax Act 2025 now in force from 1 April 2026, these provisions have been renumbered and, in the case of TDS sections, substantially consolidated into a unified TDS framework — promoters and buyers should confirm the current section references and rates with their CA rather than relying on the old 1961-Act numbering.

Plotted layouts and township projects are 'real estate projects' under RERA if they meet the area/unit thresholds. Section 2(zn) includes plots in the definition of real estate project. However, certain state Authorities have issued separate guidelines or regulations for plotted layouts — for example, some states exempt purely agricultural land subdivisions or projects below a specified area from registration. Check the state Authority's regulations for plotted development-specific rules.

Section 2(k) of RERA defines 'carpet area' as the net usable floor area of an apartment, excluding the area covered by external walls, areas under services shafts, exclusive balcony or verandah area, and exclusive open terrace area on the terrace. This is a standardised definition that supersedes the previously variable 'super built-up area' metric used by developers. Under Section 12, promoters must disclose and sell apartments only on the basis of carpet area — not super built-up area. Any cost escalation due to variation in carpet area must be shared proportionally with the allottee.

Section 15 of RERA provides that a promoter cannot transfer or assign the majority rights and liabilities in a real estate project to a third party without prior written consent of two-thirds of the allottees, and also without prior written approval of the Authority. This prevents distress sales or assignment of liabilities that leave allottees exposed to a new unknown promoter. Any transfer must be notified to all allottees.

No. Section 14(3) of RERA imposes a defect liability obligation on the promoter for a period of 5 years from the date of possession. During this period, if any structural defect or any defect in workmanship, quality, or provision of services is brought to the notice of the promoter, the promoter must rectify it free of cost within 30 days. Failure to rectify within 30 days makes the promoter liable to pay compensation to allottees as determined by the Authority.

RERA applies to any 'person' as defined under the Act — which includes individuals, companies, firms, trusts, and bodies corporate. NRI buyers of apartments in RERA-registered projects have the same rights under RERA as resident Indian allottees. Foreign promoters investing in Indian real estate projects through wholly-owned subsidiaries or JV structures must comply with RERA in addition to FEMA regulations governing FDI in real estate, which are administered separately by the RBI.

Section 14 of RERA recognises the Association of Allottees and gives it specific rights — particularly the right to consent (two-thirds majority) for any material alteration in sanctioned plans (Section 14(2)) and the right to consent (two-thirds majority) for any transfer of the project by the promoter (Section 15). The Association can also approach the Authority for enforcement. Section 11(4)(e) requires the promoter to enable the formation of the Resident Welfare Association or the Association of Allottees on delivery of possession.

Section 71 of RERA provides for the appointment of an Adjudicating Officer — typically a serving or retired judicial or IAS officer. The Adjudicating Officer has jurisdiction to decide claims for compensation under Section 12 (false advertisement), Section 14 (structural defect), Section 18 (failure to give possession), and Section 19 (allottee rights). The Adjudicating Officer can award compensation but cannot issue injunctions — that power lies with the Authority.

PNPC prepares and reviews: CA-certified project cost estimate, project escrow account opening documentation, review of proforma AFS and allotment letter against state model formats, CA certification for all escrow withdrawals, quarterly compliance updates and certificates, audited project accounts, and the annual statement of accounts required under Section 4. PNPC also coordinates with the project Architect and Engineer for the joint certification required for escrow withdrawals.

A RERA registration in one state is valid only for that state's projects. Projects in other states require separate registration with each state Authority. Within the same state, if there is a change in the project — extension of completion date, change in project area, change in number of units, or change in promoter — a formal amendment application must be filed with the Authority. The Authority has powers under Section 5 to extend registration on application.

This is an active area of jurisprudence. The Supreme Court in Pioneer Urban Land & Infrastructure Ltd v. Union of India (2019) held that homebuyers are 'financial creditors' under the Insolvency and Bankruptcy Code (IBC) and can initiate Corporate Insolvency Resolution Process (CIRP) against a defaulting developer. RERA proceedings and IBC proceedings can run in parallel — RERA does not oust IBC jurisdiction and vice versa. The Resolution Professional under IBC must factor in RERA obligations as part of the information memorandum and Resolution Plan.

PNPC Global has been providing CA services to the real estate sector since well before RERA's enactment. Since 2017, we have guided residential and commercial developers through project registrations across MahaRERA (Maharashtra), TNRERA (Tamil Nadu), K-RERA (Karnataka), HRERA (Haryana), and UP-RERA (Uttar Pradesh). Our team handles the CA certification for escrow withdrawals, quarterly update filings, annual project audits, and the tax and financial compliance that RERA-registered projects require. Our Chennai, Bangalore, and Hyderabad offices cover South India; our Mumbai-connected services cover Maharashtra; and our Dubai office advises NRI investors and UAE-based promoters investing in India.

The starting point is a project assessment call or meeting with our RERA specialist. We review the project's land status, approval stage, and promoter's current compliance position, identify the relevant state Authority and applicable regulations, and give you a clear picture of what documents are ready, what needs to be obtained, and the realistic timeline and cost of registration. From there, we prepare a fixed-scope engagement letter covering the initial registration and an ongoing compliance retainer. Contact our Chennai, Bangalore, Hyderabad, or Dubai office, or reach us through the website.