Introduction to RERA Act

Real Estate Regulation and Development Act (RERA) is a regulatory framework designed to protect the interests of homebuyers and promote transparency and accountability in the real estate sector. It enacted by the Indian Parliament in 2016, and each state and union territory is required to establish a regulatory authority to enforce the provisions of the Act.


Objectives of RERA Act

The primary objective of the RERA Act is to protect the interests of homebuyers by ensuring that real estate developers deliver their projects in a timely manner, provide accurate information about the project, and maintain transparency in their transactions. The Act also aims to promote fair competition in the real estate sector and ensure that developers adhere to ethical practices.

Key provisions of RERA Act

The RERA Act has several key provisions that provide protection to homebuyers. These include:

  • Registration of Projects

Under the Act, developers are required to register their; projects with the regulatory authority before commencing any construction work. This ensures that the project is in compliance with all regulatory norms and that the developer has the necessary financial resources to complete the project.

  • Disclosure of Information

Developers are required to provide accurate and timely information about; the project to the homebuyers, including the status of the project, the layout plans, and the timeline for completion.

  • Escrow Account

The Act requires developers to maintain a separate escrow account for each project, where they must deposit 70% of the funds received from homebuyers.

  • Carpet Area

The Act mandates that developers must sell the property based on the carpet area and not the super built-up area. This ensures that homebuyers get a fair deal and are not misled by developers.

  • Penalty for Delay

In case of delays in the completion of the project, the developer is liable to pay a penalty to the homebuyer.


Impact of RERA Act

The RERA Act has had a significant impact on the real estate sector in India. It has brought in more transparency and accountability, which has increased the confidence of homebuyers. Developers are now more cautious in their dealings, and they are taking steps to complete their projects on time. The Act has also helped to reduce the number of disputes between homebuyers and developers.



The RERA Act is a landmark legislation that has brought in much-needed reforms in the real estate sector. It has increased transparency and accountability and has provided protection to homebuyers. The Act has also helped to promote fair competition and ethical practices in the real estate sector.

Written By Advocate Associate Avichal singhal

Law Offices of Kr. Vivek Tanwar Advocate & Associates



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