Authorities & RERA
What is RERA?
The law that turned Indian home buying from an act of faith into a transaction with rules. Most buyers still don't use it.
The short answer
RERA is the Real Estate (Regulation and Development) Act, 2016. It requires developers to register their projects with a state authority, publish verified details of every project, and put 70% of your money into an escrow account that can only be spent on that project.
It also made carpet area disclosure mandatory, and gave buyers the right to interest on delayed possession. It came into force in May 2017. Every registered project has a RERA number, and you can look up any of them, for free, in about two minutes.
The problem RERA was built to fix
Before 2017, buying an under-construction flat in India meant handing a large sum of money to a private company on the promise that a building would exist one day. There was no requirement to keep your money separate from the builder's other projects. There was no standard definition of the space you were buying. There was no penalty for delivering four years late.
Money paid for a flat in Bengaluru could fund a land purchase in Pune. When the Pune deal soured, the Bengaluru buyers waited. Some are still waiting.
RERA did not make developers honest. It made specific dishonest things difficult.
The 70% escrow rule
A developer must deposit 70% of the money collected from buyers into a separate bank account for that project alone.
Withdrawals are permitted only in proportion to construction completed, and must be certified by an engineer, an architect and a chartered accountant. The money cannot be moved to another project.
This is the provision that attacks the root cause. The classic Indian stalled project was not usually a fraud — it was a developer using Project B's money to finish Project A, then needing Project C's money to finish B. RERA breaks the chain.
Your rights as a buyer under RERA
| Right | What it means in practice |
|---|---|
| Interest on delay | If possession is late, the builder owes you interest for every month of delay — at the same rate they would charge you for a late payment. |
| Carpet area disclosure | The agreement must state the carpet area, defined in Section 2(k). No more paying for lobby square footage without knowing it. |
| Refund for shortfall | If the delivered carpet area is less than the agreement says, you get a refund of the excess paid, with interest. |
| Right to withdraw | If the builder fails to deliver as promised, you may withdraw and claim a full refund with interest. |
| Defect liability | Structural defects must be rectified free of charge for five years from possession. |
| No unilateral changes | The builder cannot alter the sanctioned plan or the specifications without the consent of two-thirds of allottees. |
| Title guarantee | The promoter warrants clear title. If it isn't, you can claim compensation. |
What builders must do
- Register the project before advertising, marketing, booking or selling anything.
- Quote the RERA number in every advertisement — print, hoarding, website, brochure.
- Upload quarterly progress to the state RERA portal.
- Take no more than 10% as advance before signing a written agreement for sale.
- Deposit 70% of receipts into the project escrow account.
- Register as an agent if selling on someone's behalf — brokers need a RERA number too.
Which projects must register?
| Project | Must register? |
|---|---|
| Land over 500 sq m | Yes |
| More than 8 apartments (including all phases) | Yes |
| Ongoing project without a completion certificate | Yes |
| Renovation or repair with no marketing or re-allotment | No |
| Project with a completion certificate already issued | No |
Thresholds are set centrally but a few states apply stricter local rules. If a project is above either threshold and has no RERA number, that is not a technicality — it is a project you should not be buying into.
What RERA does not cover
Being honest about the limits matters more than cheerleading.
- It does not cap loading factor. A builder may still price on super built-up area and load it by 45%. RERA only requires that the carpet area is disclosed.
- It does not regulate price. There is no fair-price provision.
- It is slow when contested. An order in your favour still needs enforcing, and appeals take time.
- Enforcement varies wildly by state. MahaRERA is generally regarded as the most rigorous. Some state authorities are barely staffed.
- It does not cover completed projects. Buying a resale flat with a completion certificate? RERA is not your remedy.
A RERA number does not mean the project is a good investment, that the builder is reputable, or that possession will be on time.
It means the project is registered and its filings are public. That is a floor, not a guarantee. The value of RERA is that it gives you documents to check — not that it checks them for you.
How to actually use RERA
Almost nobody does this. It takes about ten minutes and it is free.
- Find the RERA number. It must be on the brochure, the hoarding and the website.
- Look it up on the state portal. Karnataka: rera.karnataka.gov.in. Telangana: rera.telangana.gov.in. Maharashtra: maharera.mahaonline.gov.in.
- Read the declared possession date. Compare it with what the sales team told you. If they differ, ask why — in writing.
- Read the carpet area schedule. Compare it with the brochure. The gap is your loading factor.
- Check the quarterly progress updates. A project that has stopped filing them has usually stopped building.
- Check for complaints against the promoter. Many portals list them.
Frequently asked questions
What does RERA stand for?
The Real Estate (Regulation and Development) Act, 2016. It is a central Act, implemented through a regulatory authority in each state — MahaRERA in Maharashtra, K-RERA in Karnataka, TS-RERA in Telangana, and so on.
Is RERA registration mandatory for all projects?
Not all. A project must register if it is on land over 500 square metres or has more than eight apartments across all phases. Projects that already hold a completion certificate do not need to register. If a project crosses either threshold and has no RERA number, do not buy into it.
What is the 70% rule under RERA?
A developer must deposit 70% of the money collected from buyers into a project-specific escrow account. Withdrawals are allowed only in proportion to construction completed, certified by an engineer, architect and chartered accountant. The money cannot be diverted to another project. This is the provision that attacks the root cause of stalled projects.
Can I get interest if my possession is delayed?
Yes. RERA entitles you to interest for every month of delay beyond the possession date declared in the agreement, at the same rate the builder would charge you for a late payment. You may also withdraw entirely and claim a full refund with interest.
Does a RERA number mean the project is safe?
No — and this is the most common misunderstanding. A RERA number means the project is registered and its filings are public. It is not an endorsement, a quality check or a guarantee of timely possession. The value of RERA is that it gives you documents to verify. You still have to read them.
How do I file a RERA complaint?
File it with the RERA authority in the state where the project is located, usually through an online portal, with a modest fee. Attach your agreement, payment receipts and correspondence. Write to the builder first and keep that correspondence — an authority will want to see that you tried.
Does RERA apply to resale flats?
Largely no. RERA governs the sale of units by a promoter in a registered project. A resale of a completed flat between two individuals falls outside it. Your protections there come from the sale deed, title verification and the Transfer of Property Act instead.