RERA Practice for Company Secretaries
The Real Estate (Regulation and Development) Act, 2016 (RERA) established RERA Authorities in each state to regulate real estate projects and protect homebuyers. CS professionals can appear before RERA Authorities as authorized representatives — representing: (a) homebuyers (allottees) filing complaints against developers, (b) developers defending complaints, (c) real estate agents in regulatory proceedings. RERA proceedings are quasi-judicial — following principles of natural justice with hearings, evidence, and reasoned orders.
Filing a Complaint — Section 31
Any aggrieved person can file a complaint with the RERA Authority against: (a) promoter/developer — for: delayed possession, defective construction, non-registration of project, misleading advertisements, failure to provide amenities, non-refund of advance, (b) real estate agent — for: misrepresentation, non-compliance. Filing: (a) online through the state RERA portal (most states — Maharashtra RERA: maharera.mahaonline.gov.in, UP RERA: up-rera.in), (b) prescribed form with: complaint details, project details, allotment letter/agreement copy, payment receipts, correspondence, relief sought, (c) filing fee: Rs. 1,000-5,000 (varies by state).
Reliefs Available — Section 12-18
(a) Delayed Possession (Section 18): If the developer fails to hand over possession on time: the allottee can claim: (i) REFUND of the entire amount paid with INTEREST (at SBI MCLR + 2%), OR (ii) POSSESSION + INTEREST for the period of delay. (b) Defective Construction (Section 14(3)): The developer must rectify defects within 30 days — or pay compensation. (c) Misleading Advertisement: Developer must refund with interest and may face penalty. (d) Compensation (Section 12): Compensation for loss suffered due to the developer's non-compliance.
RERA Hearing Procedure
Step 1: Complaint filed → RERA issues notice to the developer (respondent). Step 2: Developer files reply. Step 3: Complainant may file rejoinder. Step 4: RERA fixes hearing date — both parties present arguments. Step 5: RERA passes ORDER — directing refund/possession/compensation. Step 6: If the order is not complied with: RERA can impose PENALTY and direct execution through the Revenue Recovery mechanism.
Penalties Under RERA
(a) Non-registration of project: Up to 10% of estimated project cost — repeated: imprisonment up to 3 years. (b) Non-compliance with RERA order: Imprisonment up to 3 years + fine up to 10% of project cost. (c) Misleading advertisement: Up to 10% of project cost. (d) Real estate agent non-compliance: Rs. 10,000 per day of default.
Appeal — RERA Appellate Tribunal (REAT)
RERA orders → appeal to REAT within 60 DAYS (Section 44). REAT orders → appeal to High Court (Section 58). Pre-deposit: the appellant must deposit at least 30% of the penalty/compensation amount (Section 43(5)) — unless the REAT waives this requirement. CS can appear before REAT as authorized representatives.
Key RERA Issues for CS Practice
(a) Interest calculation: RERA prescribes interest at SBI MCLR + 2% — CS must calculate the interest accurately from the promised possession date to actual possession/refund. (b) Force majeure: Developers often claim force majeure (pandemic, regulatory delays) — CS must assess whether the claim is genuine and recognized under RERA. (c) Carpet area discrepancy: If the delivered carpet area is less than promised: the allottee can claim proportionate refund. (d) Builder-buyer agreement: One-sided clauses may be struck down under RERA — CS can advise on agreement review.
Disclaimer: This article is for informational purposes only and does not constitute legal or professional advice. While every effort has been made to ensure accuracy based on the latest laws and amendments, readers should consult a qualified professional before acting on any information provided. For expert assistance, contact us.