These are the five major objectives of RERA, 2016. To establish the Real Estate Regulatory Authority (RERA) To promote transparency and efficiency in the sale of real estate projects To protect the interest of consumers in the real estate sector To establish an adjudging mechanism for speedy dispute settlement To set up an Appellate Tribunal to hear appeals from the decisions, directions or orders of the RERA.

Initially, the bill was supposed to cover only residential projects. On further amendments, commercial projects including shops, offices and buildings were also included.

Yes, A Central Advisory council will be set up to advice the Central Government on the implications of the Act to recommend policies in order to protect consumers’ interest and to supervise the growth & development of the real estate sector. In addition, there will be a dedicated Appellate Tribunal set up for RERAs to hear appeals from orders of the RERAs and the adjudicating officer.

In order to escalate the responsibility and accountability of real estate developers towards consumers, the RERA has made the following compulsory for them: It is mandatory for the real estate developer to register the project with the RERA and obtain a valid registration number before proceeding Any kind of marketing, advertising or selling of units is strictly prohibited before the registration of the project The real estate developer is required to submit all documents related to the project which is considered necessary by the RERA The real estate developer must deposit 70% of the payment received from the consumers in an escrow account and ensure that the amount is solely used for the development of the project for which it was taken Must adhere to the project plan at all times Refund the money taken from the consumers with an applicable interest in case the project cannot be completed. Compensate the consumer for the time delay if any To repair any structural defects in the construction even after 5 years of handover of the project.

Following actions will be taken by the RERA after an application has been submitted for project registration: The RERA is required to either grant registration or reject the application within 30 days of its submission On acceptance of application, the real estate developer will be provided with a login id and password to access the RERA portal for the submission of documents and details If the application is not in conformation with the guidelines then the RERA may reject it after hearing the applicant’s please.

The real estate developer has to specify the project completion time in the RERA application form. Hence, the real estate developer is accountable to follow the timelines otherwise, he will suffer losses/ penalties.

The real estate developer who will violate the order of the appellate Tribunal of the RERA may face imprisonment up to three years with a fine of up to 10% of the total estimated cost of the project in question.