Understanding RERA – 14 rules real estate investors should know

POSTED BY Team Jagoinvestor ON August 12, 2019 COMMENTS (94)

For Long, the real estate sector was unregulated and in favor of builders and developers. From getting delayed possession to bearing a huge loss of project cancellation, all has to be borne by home buyers.

Even in worse case after living in a society for a long period of 10-15 years, homeowners need to vacant the society due to builder’s mistake of not getting approval from government for the said project.

And after all these, for any of these malpractices, if a home buyer files a complaint, it use to take years to get a verdict. However, now to bring transparency and accountability to this sector, Real Estate Regulatory Act, 2016 has come to force.

This aims to create a more equitable and fair transaction between sellers and buyers of properties. The Real Estate (Regulation and Development) Act is expected to ensure consumers will not be cheated or taken for a ride by the developers.

So, we will see in 14 points that how RERA will benefit us. But, before that let’s see all loopholes and malpractices builders and agents use to do in the real estate sector.

  • Delay in project completion
  • Use to cheat buyers with false information
  • Divert funds to another project or for other purpose
  • Get-away with sub-quality construction
  • Offer special pre-booking rates
  • Keeping Date of possession clause in agreement empty
  • Altering the project developments without consent

14 RERA rules investors should know

1. Registering project with RERA :

RERA makes it mandatory for all commercial and residential real estate projects where the land is over 500 square meters, or eight apartments, to register with the Real Estate Regulatory Authority (RERA) for launching a project, in order to provide greater transparency in project-marketing and execution.

The builders or developers have to publish all the details such as sanctioned plan, layouts, the location of the project with clear demarcation of land, carpet area, number and area of garage, etc. So, with RERA builder have to get all the clearance before they could advertise or sell any property, it will help in malpractices to be curbed.

Hence, before entering into the contract, you can check online on the website of RERA about every detail of the project by visit the RERA site of the concerned state and go into the registration tab. I have attached a screenshot of RERA Maharashtra. To get an idea about how RERA MAHARASHTRA REGISTRATION site looks like.

Snapshot of RERA website for registration

If you are offered to buy a property of any unregistered project then you can notify the same to RERA to save others from any kind of fraud.

2. Quarterly updates on Construction progress : 

Now builders/developers have to upload project details including number and types of units sold out, government approval taken or approval pending list & completion scheduled every three months. Along with that if there is any litigation going on related to that property then all the documents of proceedings have to be uploaded by builder/developer. Hence now you can check online the progress of the project they are putting their money in.

3. Escrow Account:

The developer will have to transfer 70 percent of the money received from customers to an escrow account. This will ensure the builder does not spend the money on other projects since they can withdraw money from this account after approvals from engineers and chartered accountants they appoint and your money will be used only for the project you invested.

4. Sale agreement standardization –

Earlier sale agreement use to be in such format that the home buyers were penalized on any default but similar defaults by promoters would not attract any penalty. But, now as per RERA norms, a standard model sale agreement has to be entered between promoters and homebuyers to ensure equality and protect buyers from various penalties and charges.

The agreement of sale shall specify particular details of the project including the construction of buildings and apartments, along with specifications, internal development works and external development works, the date on which the possession of the apartment, plot or building is to be handed over, etc.

5. Maximum 10% of cost of project as advance payment :

The promoter can not accept a sum of more than 10% of the cost of project, plot, etc.. as an advance payment or an application fee from you without first entering into a written agreement for sale with such person and register it.

6. Five years of defect liability period :

Under RERA, in case of any structural defect or poor quality, it will be the responsibility of the developer to rectify such defects for a period of five years. So, if any defect is found in the quality used in the construction of property then you can make the developer/builder liable for all sub-quality issues and ask for repairing or compensating the same.

You can also watch the video on RERA –

7. Carpet Area :

The area of a property is often calculated in three different ways – carpet area, built-up area, and super built-up area. Hence, when it comes to buying a property, this can leads to a lot of disconnect between what home buyer pays and what he actually gets.

But, now it is mandatory for the developers to disclose the size of their apartments, on the basis of carpet area (i.e., the area within four walls). This includes usable spaces, like the kitchen and toilets.

8. Title Representation :

Promoters are required to disclose clear title over the property and project. If any defect is found in title of property then you can ask for the compensation and there is no limit for the amount of this compensation.

9. False information to home buyers :

If you made an advance payment for a project on the basis of any false information given to you via prospectus or in advertisement then you have the right to ask for a refund of your money. And if you want to continue with the project then the builder has to pay penalty and that can go up to 5% of the cost of property.

10. Failure to complete possession on time :

If the promoter fails to complete or is unable to give possession on time then, the promoter is liable to pay the entire amount given by you if you wish to leave the agreement. But, if you wish to stay in the agreement then the promoter will have to pay interest for every month of the delay till you receive the possession.

11. Approval for alteration in sanctioned plans :

If a builder wants to make alteration in plans and specifications of your individual flat then he can do that only with the approval of you. And if a builder wants to make alteration in the entire project’s layout & common areas of society  then he needs approval of the 2/3rd number of total buyers.

12. Obligations of the promoter in case of transfer of real estate project to a 3rd party :

The promoter will not be allowed to transfer the majority rights and liabilities in respect of a real estate project to a 3rd party without the prior written consent from two-third allottees (buyers), except the promoter, and without the prior written approval of the RERA authority.

13. Agent registration is mandatory :

Now, every real estate agent has to register himself under RERA before selling or advertising any property and he has to abide by all rules of regulation like, maintaining books & records, not be involved in unfair trade practices or make any false statement oral or written.

14. Grievance Redressal: :

If any buyer, promoter or agent has any complaints with respect to the project, they can file a complaint with RERA. State real state regulatory department will try to resolve the dispute within 60 days. If you aren’t satisfied with RERA’s decision, a complaint can also be filed with the Appellate Tribunal within the next 60 days. Even after that if he is not pleased the complaint can be filled to high court and supreme court.

Benefits of RERA act 2016 :

This act is not benefiting only buyers but also agents and builders. RERA infuses credibility by making the sector mature & transparent and helping to Channelize investment into the sector. It will increase the confidence of financial institutions & foreign investors in the real estate sector.

Offense-wise penalties for developers :

The following are the penalties and compensation that can be levied on promoters.

For non-registration of a project Penalty of up to 10% of the estimated cost of the project.
For violation of other provisions of the Act Penalty of up to 5% of the estimated cost of the project.
For non-compliance of the orders of the Authority Penalty for every day of default, which may cumulatively extend up to 5% of the estimated cost of the project.
For non-compliance of the orders of the Appellate Tribunal Penalty for every day of default, which may cumulatively extend up to 10% of the estimated cost of the project or with imprisonment for a term which may extend up to three years or both.

Offense-wise penalties for Real Estate Agent :

The following are the penalties and compensation that can be levied on the real estate agent.

For non-registration under project, he is selling Rs. 10,000 per day of defaults which may extend up to 5% of the cost of the property.
For contravention of the orders or direction of the RERA Penalty on a daily basis which may cumulatively extend up to 5% of the estimated cost of the property whose sale or purchase was facilitated.
For contravention of the orders or direction of appellate tribunal Imprisonment up to 1 year with or without fine which may extend up to 10% of the estimated cost of project or both.

Offense-wise penalties for Allottees(Homebuyers) of RERA registered project:

The following are the penalties and compensation that can be levied on allottees.

Contravention of any order of the RERA Penalty for the period during which defaults continues which may cumulatively extend up to 5% of the apartment or building cost.
Contravention of the orders or direction of appellate tribunal Imprisonment up to 1 year with or without fine for every day during which such defaults continues, which may cumulatively extend up to 5% of the apartments or building cost or both.

*Apartment means block, chamber, dwelling unit, flat, office, showroom, shop, warehouse, premises, etc.

How to file a complaint :

After the implementation of RERA, we are optimistic that the new law will protect our interest. However, the most important question is, how to file a complaint or a case, under the new RERA rules.

So, for this, every state has described specific forms and procedures which are to be followed. The application can also be filed online, as per the format available. For filing a complaint, the complainant has to provide following details-

  • Particulars of the applicant and the respondent
  • Registration number and address of the project
  • A concise statement of facts and grounds of claim

The form has to be filled and submitted with Real Estate Regulatory Authority or the adjudicating officer.


RERA is a huge step forward against thief developers. Till now, there wasn’t any regulator and neither were the rules in place. Delay in delivery of projects, bad material used for construction, changing of sanctioned plans every now and then was the major reason why RERA ACT,2016 came into existence.

However, even after RERA, there are many loopholes in this sector. For eg. It might happen that you wrongly signed some document which gives consent to any changes in agreement or project. Because RERA is just a mechanism which is in place to serve justice to all the parties. So, it is always your responsibility to be alert and get into any contract after due diligence.

I hope this article has helped you in understating RERA act 2016. Feel free to ask any doubts in the comment section.

94 replies on this article “Understanding RERA – 14 rules real estate investors should know”

  1. Suraj S says:

    Attended their online presentation and did the booking.. I have not signed any forms till now and no charges were mentioned at the time of booking.

    1. Jagoinvestor says:

      Charges exist.. Paying without any proof or without any document is a big risk. Now you are at the mercy for the rules what they mention to you.

  2. Suraj S says:

    I have booked a flat in Pune Maharashtra, RERA was not received for the Tower (i.e. T6) in which I have booked but for other Towers (i.e. T1, T2, T3) was there, initially, the sales team said RERA will come in next 15 days and then rates will be high, so I have booked the flat in the pre-launch offer and paid 1lac booking amount. But now after 3months RERA still not come for that Building/Tower. Now I want to cancel the booking but the sales team said there will be cancellation charges of Rs.45000. Can I get refund of full booking amount ? If Yes How or I have to take legal action against them?

    1. Jagoinvestor says:

      Check the terms and conditions on the form which you have signed

  3. RS says:

    Does a builder have to register with Rera ? I have paid amounts with a Mumbai builder in 2008 for multiple flats and that project has never been launched or registered. They say they are still trying to get a clearance certificate and intend to build .Meanwhile they have built 2 other projects. Do I have any rights under Rera to get my money back with interest?

    1. Jagoinvestor says:

      RERA was not there in 2008. So they may not be registered.

      There is no rights under RERA to get any money back..

  4. Luckyh says:

    We have 4 buildings in a complex in Thane Maharashtra and in same complex builder want to construct a new building. Does as per RERA is it mandatory that builders have to get NOC for existing society or APEX body before staring construction on one more new building? Please guide

    1. Jagoinvestor says:

      If society owns the land then builder cant do it. But in Maharashtra it can also happen thats the flats are in apartments mode where conveyance deed may never have happened and land still belongs to builder. Than they can do it

  5. Mrs sharada says:

    I have bought a flat of 545 sqft from a builder who is registered under reta at bangalore. My querry is
    Whether builder can charge separate amount for car parking, legal fees and club house, bescom charges.
    2the builder has delayed the project inordinately. He has given the letter of compensation. Whether this can i claim in rera.
    3can you guide me how I should claim the relief. More than 90petcent of cost paid.
    One of the partner has abscondex and in his place another partner joined. Can i make the absconding partner too a party.
    I am an old lady. Is it worth going for a litigation. If not what is the remedy.

    1. Jagoinvestor says:

      Cant charge extra for parking!

  6. PN Badri says:

    My rogue developer deceptively retained small UDS and constructed a flat in stilt floor and one more flat in the open terrace. Stilt and open Terrace are common areas. Unfortunately all these dishonest practices with tacit support of coowner. Highlighting these to other home buyers FIP.

  7. stephen v says:

    we thought of buying a plot from rera approved layout.but when checked in the government rera website, the uploaded document does not contain that particular plot number which we plan to buy..why is it so..can we buy that

    1. Jagoinvestor says:

      A lot of times the plot numbers are changed internally also .. meet the developer once..

  8. Sunil says:

    I have been asked to pay stage wise completion cost. Can someone point me the guideline on understanding the stage or percentage of completion.
    Say for e.g SPR Cons Chennai asking me to pay 50 perc just for completing roof and pillar only

    1. Jagoinvestor says:

      Hi Sunil

      This is very much state specific and you will get correct info from google only

  9. Sneha says:

    I wanted to know whether the builder has to compulsorily disclose details of contractors, like PMC contractors, etc employed for the project. Is there any mandatory section under the act or any notification or rules for the same.

    1. Jagoinvestor says:

      I am not aware of anythign like this. I dont think so

    2. Diya says:

      Wanted to know the intrest on delayed payment to builder? My building is asking me to pay 13% intrest. As my bank Disbursement payment was delayed to 30 days due to approval, processing and then rejection and then applied to other bank delay and then hospitalized due to covid ?

      1. Jagoinvestor says:

        It will depend purely on your agreement. It must be mentioned there!

  10. hemanshu shah says:

    In Mumbai, lots of redevelopment work is going on, are the original members eligible in RERA?

    1. Jagoinvestor says:

      If its a new project or construction (even if its redevelopment) it shall come under RERA

  11. Ajay Pandey says:

    I am planning to buy a ready to move flat with a builder in Noida Extension. As per builder the OC is applied in Mar-21 however GNID (greater Noida authority) has still not issue the approval on same. Other buyers are now taking possession without OC (occupancy certificate) as builder has explained them that as per UP RERA if builder has taken CC/NOC from GNID then buyers can avail the possession. Request to guide if it is legally viable as per RERA to buy a flat without OC.

    1. Jagoinvestor says:

      I think its not prudent to buy a flat if OC has still not come.

      Please stay away!

  12. Anwar says:

    Hi, I had purchased a new flat in Ahmedabad, However within 7 months we could see the issue of water leakages and some lines of cracks here and there in the society. Should the builder be liable for this? until when can we hold builder liable for rectifying the above issues

    1. Jagoinvestor says:

      Mostly its 4-5 yrs, but the right place to raise this issue with your society/office

      1. Anwar says:

        what if the builder does not repair and blames above flats for leakage of water from ceilings or walls

        1. Jagoinvestor says:

          You need to check if its builder liability to compensate or not. If yes, then he has to do it, else file a case against it!


  13. Azhar P Anwer says:

    I booked a RERA approved plot in Bengaluru and paid 20%, I got the approval of 80% loan from the bank.
    But due to some delay in the process, the disbursement of loan amount is getting delayed.
    All of a sudden I received an email from developer stating as 3rd remainder to pay the remaining full amount with 5% interest. Where as i did not receive 1st and 2nd reminder.
    Can I approach RERA and file a complaint?. Please advice

    1. Jagoinvestor says:

      Yes, do reach out to RERA on this.

  14. Sheetal says:

    Hi Manish,

    Builder is collecting a last disbursement money from all the flat members but he is making partiality in giving pocession. Instead of giving the pocession to the member whose money received first, he is providing pocession to rich and influenced person. Shall I register a case against builder in RERA for the same?



    1. Jagoinvestor says:

      Yes if he is not following the agreement done with you. You shall reach RERA on this.


  15. Vaishnavi says:

    I have bought one villa in Kanakapura Bangalore and construction is going on. But I see a lot of damages while doing this construction. As an owner, i have the right to ask the builder about damages and stop the work until the problem is solved or explained?
    1. Also as a customer what and all right I have to ask about construction in RERA projects?
    2. Can I ask about all inside and outside sizes on house in the RERA project?
    3. To whom we need to reach to give complaints in the RERA project?

    1. Jagoinvestor says:

      You need to resolve this with builder itself. If all these issues are happening due to construction outside your villa, then RERA will not help. Its a police case then

  16. Raj says:

    Dear Sir,
    My case is pending in District Consumer Forum. Asking a Real Estate Company to refund my paid amount for the last 5 years but they refuses and filed case in District Forum in Nov 2019 but due to delay in Forum I want to approach RERA.

    1. Can I complain in RERA even my case pending in District Consumer Forum?
    2. Should the company be registered in RERA? If not , Will RERA resolve my case if I caomplain
    3. Some one in A.P RERA Objected me to file complaint as my case pending in Forum . Any proof to file complaint in Rera?

    Thx in advance

    1. Jagoinvestor says:

      You need to check this with a lawyer now. Its now a lawyer level issue


  17. Kiran says:

    Shall we buy a flat if its having RERA registration number but in that showing.

    Litigation related to the project —yes

    1. Jagoinvestor says:

      Technically you can buy.

      Because every project has small big litigations. What you need to check is the nature of litigation and then consult a lawyer about it


  18. naveen kumar says:

    i have booked a project in khopoli in december 2016 and in my agreement the possession date was july 2022 and more than 90% payment i have done to the builder but still the project is in under construction. what should i do as iam tired of paying these EMI to the bank every month. no sign of completion of the project can be seen. can i get any relief from the court as my agreement date doesnt match with the RERA date.

    1. Jagoinvestor says:

      You can surely go to RERA and complain to them. However, all these things are not so easily in your favour. There must be a clause in agreement and that in unforeseen situations, the delay can happen and the last 1 yr, it has been a corona period.


  19. D S patwal says:

    I buy a flat in 2016 in Dehradun and have a lozn against it I have taken the possession snd living in it but it is not yet registered against my name ,builder was making one after another exuces for not getting ready to register it on my name .Now I come to know that their is one more home loan against the same flat on some other person name what should I do plz guide

    1. Jagoinvestor says:

      Confront the builder and file a case. What else you can do !

  20. P S SAIBABU says:

    I, P S Babu from hyderabad ,telangana state, my sel f purchased a flat in 2017 , entered into AFS on 2018 in RERA APPROVED venture , that project completion normally 5 yeras as per AFS , but the builders conastruction very slow, its ok but original AFS not given to me , as per Rera who will hold the Original AFS , pl give reply

  21. Rohan says:

    I had purchase a flat and agreement was done in March-2016 without any clause of Possession date. but while booking Builder said it will be in 18 months. Till date Jan-2021 no possession given to us. Still electrical ,lift, coloring part and all common premises work still pending. Should i raise complaint regards this delay of possession at MAHRERA as it comes into effect from May-2017.

    The construction quality was also not up to mark. what should be action taken in that regards for checking quality and reporting to whom if any default found.

    1. Jagoinvestor says:


      Sadly if it was not in agreement, you cant hold builder responsible for delay. Verbal agreement as are good are imaginary conversation. How will you prove things?

      You can surely file a complaint, but all agreements are titled towards builders !

      Give it a shot I would say!


  22. Bharat says:

    I want to know that is there any deposit in rera of a builder the property is ready and all the flats has been sold and now some work is pending in building premises nut builder is saying first we will form a society and then he will complete works he is also nit showing the maintainace balance sheet and all members have already paid the maintainance charges and the builder jas taken a huge amount of money from the society and now he is saying forget the fund which we have paid my question is hiw muvh builder will the fund to siciety

    1. Jagoinvestor says:

      Get along with all buyers and file a case against the builder if he is not following the agreement signed!


  23. Tanmay says:

    hello there, I am going to purchase a flat which is under construction and is going to be delivered to us in Dec 2021 ie after 12 months. Its 78% work is completed till date. So till date the same amount is due from our side. No any legal formalities are done till date except we have paid the stamp duty of the flat for getting the benefit of 2%. Also builder has taken the token amt of 1 Lakh.
    The builder is asking for 10% of the agreement value to pay first and then he will go for the agreement for sale. He is refusing to issue demand letter for the 10% amount. And insisting to pay it off from our savings. We want to get the finance from Bank and simultaneously the property will get verified by the bank also.
    Kindly reply whether it is ”compulsory” to pay 10% amount before going for Agreement for sale. And, If yes, then what are the risk factors if we pay the said amount from our savings without having the demand letter from builder.

    1. Jagoinvestor says:

      Agreement to sale is just an agreement for future sale. The sale will happen when you do the “sale deed”

      By giving the booking amount, you are kind of stuck now and builder is taking advantage of that. I really don’t know how to solve this, as its very prevailing in real estate sector

  24. gagan s says:

    I have purchased a flat from reputed builder in Mumbai, they agreed to give the possession in June2020 which was delayed for year now. I am a salaried person and due to Covid situation i was short and delayed in providing Demand raised for the slab construction. The Builder has imposed a hefty penalty as interest for late payment, i negotiated with them but they reduce a small amount and mentioned that if i don’t pay the penalty then my booking will be cancelled.
    They are delaying the possession to next year and for me there is a penalty and rent of current place i am staying on my part to take care. i got scared and in a rush rush situation i have taken a loan to pay off my dues to the builder. Now i am thinking that i was cheated by them, is there a way i can get my money back from builder which they charged as late payment fee.
    the possession is still not confirmed yet by builder
    appreciate a response to guide me.

    1. Jagoinvestor says:

      Truly speaking the rules are all in favour of builders as the agreement you signed will all be worded in a way that it benefits them. Truly speaking you cant do much.. Thats the reason why people generally never suggest to go for under construction properties.


      1. Gagan says:

        Thanks Manish for the reply. seeing that there is no possession date and i am paying rent which is extended for another year along with the installments for home loan. will those parameters has any value in RERA or if i can plead my case again with the builder.

        1. Jagoinvestor says:

          You paying rent also apart from EMI is not a concern for RERA.. They will entertain only the builder and property issue if any.

          Truly speaking builders have the edge when it comes to situations like these. I think you relied too much on their words. Always discount their possession date by 2 yrs!

      2. subha says:

        do you think consumer court is the best place where we can get justice ?

          1. Digant says:

            If this is RERA registered project, you should find the completion/possession date of the project mentioned on the RERA site. If the builder has exceeded that date than you can file the complaint. Also, delay in completion of project can be enough reason for the buyer to opt out of the deal. In such a case, builder may have to return you all the money and I suppose that should include the penalty as well that you have paid. Please seek legal guidance.

  25. Tushar Khopade says:

    i have purchased flat in 2015 in pune talegaon, in agreement builder has promised to give possession in dec 2017 but yet i have not received possession, also they are demanding society maintenance per 4 rs sqr ft but is in agreement it is 3 rs sqr ft. so my questions as belows,
    1) can i cancel my agreement due to builder false given possession on time, if yes then how much amount i will refund?/if no then what is the step of action i have to do?
    please revert asap

    1. Jagoinvestor says:

      Cancellation policies must be mentioned in the agreement only. Have you checked that?


      1. subha says:

        what happen if I did not sign the agreement ????

        1. Jagoinvestor says:

          In that case, you have no predefined rules set.. if builder returns back 10% amount and keeps 90% cancellation (just for example) and says that it was told to you verbally. How will you fight for that?


  26. Rajesh Bhatia says:

    Dear Sir

    I booked flat in Sohna and paid one lakh along with application form signed by myself which has forfeit clause of initial 10% payment if custom cancel the booking.

    Before any CRM welcome email from builder I decided to cancel and immediately informed builder on email and requested to refund but builder refused and forefeit my one lakh.

    Pls note this is very initial stage and no agreement was signed. Pls guide how I can get my refund.

    Best regards

    1. Jagoinvestor says:

      I dont think there will be any law governing it .. It gets very tough to recover back in these cases. Even if you register a police complaint how will you prove what you are saying.. was there any refund rules agreed?

  27. Rajkumar Phugat says:

    Hi, I booked a flat with M/s Migsun in 2017, i paid 10% amount and rest amount financed by ICICI Bank, till date bank paid all demanded amount by builder. As per builder buyer agreement possession date was Dec 2019. I received a pre possession letter from builder on 4th Sep 2020, stating that please pay your all dues and we will issue possession after 90 days. Also attached one more sheet of late payment fee of Rs 80734, after discussion they agreed to reduce this and late charges Rs 44567/- . I am paying all my EMI’s to bank on proper time. As i booked my flay as bare unit so interior cost and extra payment from loan also paid. Till date i paid preEMI cost Rs 310000. I paid all my dues on 1st Oct 2020 except late charges. Also builder is giving possession late on one year. Please suggest what should i do for these late charges.

    1. Jagoinvestor says:

      Sadly this has become a norm now .. Complain to the RERA and consumer court

  28. VINOD YEOLE says:



    1. Jagoinvestor says:

      Yes, better complain about this to RERA itself on their website.

  29. Bhavleen Singh says:

    Is the developer obliged to give the possession of the flat immediately on full payment for the flat?

    1. Jagoinvestor says:

      No, only as per agreement

  30. santosh says:

    can you tell me i want buy one villa in goa but he is not register in rera but he have oc. so can i buy this.

    1. Jagoinvestor says:

      Yes, if OC is there you can go ahead .. why not check the documents with the lawyer ?

  31. kiran says:


    I have booked a flat in pune by checking RERA website and it shows NO legal problems.
    All the documents have been uploaded ExceptJDA (JOINT DEVELOPMENT AGREEMENT) and i am going hand him cheque when itis completed and registered.
    My question is can i blindly book a RERAregistrd flat ???

    please help!

    1. Jagoinvestor says:

      No you cant.. RERA is just a primary level clearance and mainly to make sure the minimum required documents are there.

      Issues can surely happen even after that. RISK is always there!


  32. guru says:

    Dear Sir/ Ma’am,

    One real estate developer in Bengaluru has not developed a residential layout even after 7 years of purchase of the plot. Do the buyers like me have any right as per RERA Act 2016 ? or is RERA applicable only for projects where house construction is involved? Please guide us. People like me have invested dreaming of constructing a own house there. But because the builder has diverted this money, he is not developing this layout and our dream of construction of own house is shattered. Please help us whether can a complaint be filed under RERA.

    1. Jagoinvestor says:

      Even a plot project must be with RERA, but I think this is an old project, so cant comment on that. Why don’t you go with the usual old route of complaining to consumer court!


  33. Mahesh Jethmalani says:

    Our project was started before RERA came into effect and builder has not registered it under RERA and finished selling flats. He says it is not covered under RERA. How complaints for his malpractices can be made and where. The project is in Vadodara Gujarat.

    1. Jagoinvestor says:

      If its not registered in RERA, then you cant do much other than taking the regular route of filing FIR , consumer court etc!

  34. Manohar Badlaney says:

    We entered into agreement for development of chs building in 2010. In this registered agreement we are offered some
    additional areas , corpus fund and monthly rent for alternative accomodation till building is ready for occupation. We were promised completion period of 3 yrs from date. Now ,9 yrs have passed ,we are informed by the developer that he is not in a position to start the project. He further said that there is AOP . ( association of purchasers) ,who would bring required funds to complete the project in order to safeguard their investment. Problem is that developer is asking for reduction in areas offered in agreement , what is option , please advise. In order to safeguard our interest,can we ask for 100 percent cost of the project to be deposited in Escrow a/c before we give our consent.

  35. One question,.. I heard promoters can take extension for a project which is completed on time.. In this case if he keep takes extension what will be benefit for a homeowner.. Or is there any penalty charged to promoters and is there any benefit to buyers.. Pls advice

  36. Leena says:

    Hi, we a group of around 100 members have filed a joint complaint under RERA against a very well known builder in Mumbai. When the case went for hearing, the judge said that group filing is not allowed and each member has to file the case/complaint separately. Do we have any such do’s and dont’s listed in any repository some where ? Need your help.

    1. Sharada says:

      we have invested in an apartment costing Inr. 1.4 Cr from very well known high profile builder and developer in Bangalore and have invested almost 75% of project value and we have completed 36 months of investing, builder has not got agreement for sale or Construction agreement signed by us so far and when we had booked by paying booking amount of Rs. 5Lac initially they promised flat possession jun-jul 2020 and now they are asking us to sign agreement, as per agreement draft shared by them its says possession will be given end Oct 2020 with 6 months grace period in favour of builder, we cannot wait for so long as our investment / finances were originally planned for occupying flat by Jun-Jul 2020, can we ask builder to refund since he is not honouring his committed date and in the absence of NO legal papers are signed by us so far with builder though we have promptly paid all payment schedules till now but when we got to understand possession is getting delayed we stopped processing further payments hence they are putting pressure to pay instalments due along with 24% interest / penalty, etc. Can we exit at this stage? will we get all our investment refunded? can we claim any interest for blocking our money for past 36 months? please advice roadmap.

      1. Jagoinvestor says:

        Hi Sharada

        I think you are in a tough situation. I don’t think there is a chance to get back your money easily. Builders are notorious in these kind of cases.

        They are almost always going to win this kind of war because the law is with them and the paper work or the documents which you might have signed are worded in a way that it will benefit them most of the times.

        Its just 6 months delay in your case. There are cases where its been 6 yrs delay and people have not got their money.

        So I guess if you feel you will get the possession after 6 months of delay, its better to just give in and take it.


  37. Suhas Patil says:

    Thanks for helpful information. However, we could not find details about forming a co op society. What is the exact rule. I also need your guidance as to our society in Thane is built in 1995 but builder has not yet formed a society even after our rigorous follow ups. Dist. Registrar rejected our application put under non-coperation in 2012 saying that 60% of the flats are not sold. We filed the case in High Court, but it is yet to be heard at final stage since last 7 years. Can clauses of RERA act applies to our building of 1995? Pls advise.

    1. Vandana Manwani says:

      Hi Suhas,

      For this kind of complications can be sorted only with the help of a professional lawyer.


  38. Ganesh K says:

    If a redevelopment project with Project registration number is inordinately delayed then can I file complaint under RERA rules ?

    1. Vandana Manwani says:

      Hi Ganesh K

      Thanks for your comment.

      Yes, if that project is having a RERA registered number that means it is registered under RERA than you can file a complaint against it.


  39. T P Viswanathan says:

    One vital information is missing. What protection does a member of the CO-op society going in for redevelopment if he falls a victim of manipulation by Devrloper? What is the recourse open for him under RERA? Will he at all get any RERA protection!

    1. Vandana Manwani says:

      Hi T P Viswanathan

      Thanks for your comment.

      Whenever a project is in development it has to be first registered with RERA. After 6 months or some time of its completion, a co-operative society is formulated.

      So, RERA says that every project has to be under RERA and co-operative society is formed later to end biased decision making.
      Therefore in case of redevelopment all the rules of RERA will be in force.


  40. Ranganathan says:

    MahaRera Form B to be uploaded in promoters’ regn page has provision for 4(i) or 4(ii) at their discretion The wording in Form B refers to 70% (4-i) / 30% (4_ii) is such that it does not require any explanation in instanes where promoters had collected 90% or even more esp. in stalled projects with hardly 50% eork progress even as per regn data. And on top of it , completion date due years ago gets extended by years at regn. time, with addl extn. by one year.
    This lacuna is not addressed.

    1. Vandana Manwani says:

      Hi Ranganathan

      Thanks for your comment.
      The Form B is a declaration form for promoters wherein point 4 is for reserve account which says that whatever amount is collected by prompters from allottees, they will transfer 70% of it to reserve/escrow account maintained in a schedule bank and withdrawal from that account will be just for the purpose of concerned project.

      I have attached the link to the form for your reference.

      Thank you.


  41. Paras Jain says:


  42. Girish KB says:

    Thanks for the information on RERA. Please help on my query –
    I entered into an agreement with the developer in 2015 i.e pre RERA but the project is now registered under RERA. Does RERA rules / regulations binding for both developer and allotee ? Thank you Jagoinvestor in advance

    1. Vandana Manwani says:

      Hi Girish KB

      Thanks for your comment.

      RERA rules and regulations will apply to Every project which is now registered under RERA.


  43. Dinesh Kumar Bhagat says:

    Promoters and Developers create the body for marketing termed as special purpose vehicles to cheat the buyers and took 20% as booking violating the RERA term of 10% Authorities and RERA officials club their hands with such entities, buyers are still duped.

    1. Vandana Manwani says:

      Hi Dinesh Kumar Bhagat

      You are right, even after RERA there are loopholes in this sector. So, the only way to be safeguarded from these kind of frauds is to make sure the rules and regulations of law.
      If a buyer knows that he is required just to pay 10% of advance so no promoter or builder can fool him.

      Thank you,


Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

FREE Financial Health Checkup

Take up a detailed 25 questions financial health checkup to find out how much you score out of 100?