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RERA

RERA (Real Estate Regulation Act): Registration, Complaints and Builder Obligations

RERA (Real Estate Regulation and Development Act 2016) mandates project registration, quarterly updates, and protects homebuyers. Learn builder obligations, registration process...

Written byDirector, TaxClue
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Updated
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7 answered
  • High Complexity
Topic
RERA
Published
May 13, 2026
Last updated
May 13, 2026
Reading time
6 min
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Last updated: May 2026Verified against: Government sources

RERA explained: this guide covers what RERA means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.

The Real Estate (Regulation and Development) Act 2016 (RERA) transformed India's real estate sector from an unregulated builder-driven market to one with statutory accountability, mandatory disclosures, and an efficient dispute resolution mechanism.

Key Objectives of RERA

  • Ensure transparency in real estate transactions
  • Protect homebuyers from builder defaults, delays, and fraud
  • Establish a regulatory authority with adjudication powers
  • Promote fair competition and efficient redressal of disputes

Mandatory Project Registration (Section 3)

Who Must Register?

  • Any residential or commercial real estate project where land area exceeds 500 sq m OR the project has more than 8 apartments
  • Ongoing projects (where OC not fully received as of RERA commencement = 1 May 2017) in respective states
  • Projects in development phases: each phase separately registered

Exemptions

  • Projects where land area ≤ 500 sq m AND ≤ 8 apartments
  • Projects where renovation/repair does not require new allotments
  • Plotted development of individual plots (some states exempt, others register)

Builder/Promoter Obligations

Disclosures at Registration

  • Approved plans, sanctioned building permits
  • Land title documents and encumbrance status
  • Financial details of the project
  • Proforma of sale agreement
  • Past track record of the promoter

Ongoing Obligations

  • 70% escrow: Deposit 70% of collections in a dedicated bank account; withdraw only based on construction progress certified by CA + engineer
  • Quarterly updates: Upload project status (construction completed, percentage sold, payments received) on RERA portal every quarter
  • No change in plans: Cannot alter specifications or common areas without written consent of at least 2/3 of allottees
  • Defect liability: 5 years after possession — must rectify structural defects reported by buyers at no cost within 30 days

Homebuyer Rights Under RERA

RightRERA Provision
Right to information about projectSection 4 — all documents on RERA portal
Right to timely possession or compensationSection 18 — interest at SBI MCLR+2%
Right to file complaintSections 31-35 — RERA adjudication
Right to refund on delaySection 18(1)(a) — full refund + interest
Right against plan changesSection 14 — 2/3 consent required

RERA Complaint Process

  1. Homebuyer files complaint on State RERA portal (MahaRERA at maharera.mahaonline.gov.in, UP-RERA at up-rera.in, etc.)
  2. Pay nominal filing fee (varies by state, typically Rs.1,000–5,000)
  3. RERA sends notice to builder; builder files reply
  4. Adjudicating Officer holds hearing (can be video conference)
  5. Order issued within 60 days
  6. If not satisfied: Appeal to RERA Appellate Tribunal within 60 days of order
  7. From tribunal: Appeal to High Court on questions of law

Interest Compensation Calculation (Section 18)

If builder delays possession by 2 years:

  • Amount paid by buyer: Rs.50 lakh
  • SBI MCLR + 2% = say 10% (illustrative)
  • Annual interest = Rs.5 lakh
  • For 2 years: Rs.10 lakh compensation

Alternatively, buyer can claim full refund of Rs.50 lakh + Rs.10 lakh interest = Rs.60 lakh (Section 18(1)(a)).

Need Expert Help?

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Quick recapKey facts & short answers

Key Facts About RERA

  • Applies in: All states across India, under the relevant central law.
  • Mode: Mostly online via the official government portal.
  • Typical timeline: Ranges from a few days to a few weeks depending on the case.
  • Non-compliance: May attract penalties, interest or late fees.
  • Expert help: TaxClue completes RERA end to end for you.

Which real estate projects must register with RERA?

Section 3: Projects with land area exceeding 500 sq m or more than 8 apartments must register before advertising, booking, or construction. Ongoing projects (partial OC not obtained as of 1 May 2017) must also register.

What are the builder obligations under RERA?

Builders must: maintain 70% of collections in a separate escrow account, provide quarterly progress updates on RERA portal, not change approved plans without 2/3 buyer consent, complete construction in time, and deliver possession on promised date.

A penalty is the visible cost of a delay; the lost time and credibility are the larger part.

— TaxClue Compliance Desk

RERA: a key compliance topic in Indian tax and corporate law that businesses and individuals must understand to remain compliant.

Related Services & Guides

Why This Matters

Staying compliant with Indian regulations protects your business from penalties, interest and unnecessary legal trouble. It is always wise to maintain proper records and documentation so that any future scrutiny can be handled smoothly. Rules and thresholds in regulatory are revised periodically, so it helps to review your obligations at the start of each financial year. Professional guidance from a qualified CA, CS or advocate ensures that filings are accurate and submitted well before the due date.

Small businesses and startups especially benefit from setting up a simple compliance calendar to track recurring deadlines. Government portals now allow most applications and filings to be completed online, reducing paperwork and turnaround time. Keeping your PAN, registration certificates and board resolutions organised makes every subsequent filing faster. When in doubt, it is better to seek clarification early rather than risk a notice or a late-filing penalty later.

A clear understanding of the applicable law helps you make confident, well-informed business decisions. TaxClue's experts regularly assist businesses across India with end-to-end regulatory support at transparent, affordable pricing. Timely compliance also improves your credibility with banks, investors and government authorities. Reviewing your obligations with a professional at least once a year keeps your business audit-ready and stress-free.

Staying compliant with Indian regulations protects your business from penalties, interest and unnecessary legal trouble. It is always wise to maintain proper records and documentation so that any future scrutiny can be handled smoothly. Rules and thresholds in regulatory are revised periodically, so it helps to review your obligations at the start of each financial year. Professional guidance from a qualified CA, CS or advocate ensures that filings are accurate and submitted well before the due date.

Small businesses and startups especially benefit from setting up a simple compliance calendar to track recurring deadlines. Government portals now allow most applications and filings to be completed online, reducing paperwork and turnaround time. Keeping your PAN, registration certificates and board resolutions organised makes every subsequent filing faster. When in doubt, it is better to seek clarification early rather than risk a notice or a late-filing penalty later.

A clear understanding of the applicable law helps you make confident, well-informed business decisions. TaxClue's experts regularly assist businesses across India with end-to-end regulatory support at transparent, affordable pricing. Timely compliance also improves your credibility with banks, investors and government authorities. Reviewing your obligations with a professional at least once a year keeps your business audit-ready and stress-free.

Staying compliant with Indian regulations protects your business from penalties, interest and unnecessary legal trouble. It is always wise to maintain proper records and documentation so that any future scrutiny can be handled smoothly. Rules and thresholds in regulatory are revised periodically, so it helps to review your obligations at the start of each financial year.

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Monika Sharma Director at TaxClue
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Disclaimer: This article is for general informational purposes only and does not constitute professional tax, legal or financial advice. Laws, rates and due dates change and can vary by individual case — always verify with the relevant government source (e.g. mca.gov.in, incometax.gov.in) or consult a qualified professional before acting. TaxClue accepts no liability for decisions taken based on this content.

People also ask

Questions, answered

Short, direct answers to the 7 questions readers ask most on this topic.

RERA is an important compliance and legal topic for businesses and individuals in India. This guide explains its meaning, applicability and key requirements in simple language so you can understand and stay fully compliant.

Business owners, startups, professionals, and taxpayers dealing with RERA should understand the applicable rules. Requirements can vary by turnover, entity type and activity, so it is best to confirm your specific case before proceeding.

Typical documents include PAN, identity and address proof, business registration proof, and any category-specific forms. The exact checklist depends on your situation — TaxClue experts can prepare the correct set for RERA and help you avoid rejections.

The process generally involves preparing documents, filing the correct form on the relevant government portal, paying applicable fees, and tracking status until approval. Following the right sequence for RERA helps avoid delays and penalties.

Yes. Late or non-compliance related to RERA can attract penalties, interest or late fees, and some filings have strict due dates. Staying on schedule protects you from avoidable costs — TaxClue sends timely reminders.

In most cases yes, RERA can be handled online through the official government portal. TaxClue can complete the end-to-end process for you digitally, so you don't have to visit any office.

TaxClue's CA, CS and legal experts handle RERA end to end — eligibility check, documentation, filing, and follow-up. Refer to RERA for official rules, and contact TaxClue for hands-on, affordable assistance.

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