RERA (Real Estate Regulation and Development Act, 2016) was enacted to bring transparency and accountability to the real estate sector.
Key Protections for Homebuyers
- Mandatory registration — All projects with 8+ units or 500+ sq.m. must be registered with RERA before launch
- 70% fund escrow — Builders must deposit 70% of collected funds in a separate account, used only for that project
- Carpet area disclosure — Builders must sell on carpet area basis, not super built-up area
- Defect liability — Builder is liable for structural defects for 5 years after possession
- Delay compensation — If builder delays possession, they must pay interest at SBI MCLR + 2% per month
How to Complain
- File complaint at your state’s RERA authority website
- Adjudicating officer must decide within 60 days
- Appeals go to the RERA Appellate Tribunal
Penalties on Builder
| Violation | Penalty |
|---|---|
| Non-registration | Up to 10% of project cost |
| False information | Up to 5% of project cost |
| Repeated violations | Up to 3 years imprisonment |
Always verify a project’s RERA registration number before booking — search at rera.gov.in or your state RERA portal.