Before 2016, buying an under-construction flat in India was an act of faith. Developers launched projects without approvals, diverted buyers’ money to new ventures, changed layouts at will, and delivered years late – or never. The Real Estate (Regulation and Development) Act, 2016, known as RERA, was written to end that era. A decade on, it has fundamentally changed the power balance between builders and buyers. Here is what the law requires, the rights it gives you, and how to use them before you book a flat.

What developers must do under RERA

The Act’s core requirement is simple: no developer can advertise, market or sell a project without first registering it with the state’s Real Estate Regulatory Authority. Registration demands disclosure – approved plans, layout, land title status, approvals from authorities, the names of contractors and agents, and crucially, the promised completion timeline. The developer must deposit 70 per cent of the money collected from buyers into a separate escrow account, to be used only for that project’s construction and land cost – the provision aimed squarely at the old practice of diverting funds between projects. Brochures and advertisements must carry the RERA registration number, and any misleading claims are punishable. Developers also cannot demand more than 10 per cent of the flat’s cost as advance before signing a registered agreement for sale.

Your rights as a homebuyer

RERA converts buyers from supplicants into rights-holders. You are entitled to full information about the project – plans, approvals, stage-wise completion schedule – and the developer cannot change the sanctioned plans or layout without your written consent (and that of two-thirds of allottees for major changes). The carpet area definition is standardised by law, ending the era of inflated super-built-up claims. If the developer delays possession, you have a choice: withdraw and claim a full refund with interest, or stay and receive monthly interest for every month of delay. If the flat has defects in workmanship, the developer must fix them within 30 days of complaint, free of charge, for five years after possession. Complaints go to the state RERA authority or its adjudicating officer, with appeals to a dedicated appellate tribunal – a faster route than consumer courts, in design if not always in practice.

Penalties: the law has teeth

Non-compliance carries serious consequences. Developing or marketing an unregistered project can draw penalties up to 10 per cent of the project’s estimated cost, with continued violations risking imprisonment up to three years. Giving false information during registration, or violating authority orders, attracts daily penalties. Authorities can also revoke a project’s registration in extreme cases. Enforcement varies by state – Maharashtra’s MahaRERA is widely regarded as the most active, while some states were slow to set up functional authorities – but the direction of travel is clear: the era of the untouchable developer is over.

How to check a project before booking

• Verify the RERA registration number on your state’s RERA portal – never book an unregistered project.
• Read the uploaded documents: approved plans, commencement certificate, title reports and the completion timeline.
• Check the developer’s track record on the portal – past projects, complaints filed, and orders passed against them.
• Confirm the carpet area in the agreement matches the RERA filing, and that payment schedules link to construction milestones.
• Insist on the model agreement for sale prescribed by your state; refuse one-sided clauses.

RERA has not eliminated every problem – delayed tribunal hearings and uneven state enforcement remain real complaints. But it has created something Indian homebuyers never had before: a regulator whose job is to be on their side, and a paper trail that makes developer promises enforceable. Use it before you sign, not after things go wrong.

FAQs

Does RERA apply to ready-to-move flats?

Projects completed with occupation certificates before RERA’s rollout are exempt, but any project still under construction or newly launched must register, even if only a few units remain unsold.

What interest do I get for delayed possession?

Most states set it at the SBI marginal cost of lending rate plus 2 per cent, payable monthly for the delay period – or you may opt for a full refund with interest instead.

Can I complain about a commercial shop or plot?

Yes. RERA covers residential and commercial real estate, including plots, though the exact scope of plot projects varies by state rules.

Compiled by the Khabar 24h Editorial Desk from publicly available sources.