Section 2 explained: this guide covers what it 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.
This is the third article on section 2. It takes the 22 clauses not covered in the other two: the institutions (Authority, Appellate Tribunal, adjudicating officer, appropriate Government), the paperwork terms (completion, occupancy and commencement certificates), "interest", "day", and the rule-making vocabulary. If a notice or certificate in your project is in dispute, our legal consultation service can help you place it under these definitions.
Interest (2(za)) is the rate payable by the promoter or the allottee, and the rate chargeable from the allottee on default must equal the rate the promoter pays the allottee on default. A completion certificate (2(q)) certifies the project was developed according to the sanctioned plan, layout plan and specifications; an occupancy certificate (2(zf)) permits occupation of a building that has civic infrastructure. A "day" means a working day notified by the appropriate Government (2(r)). Rules are made by the appropriate Government; regulations by the Authority (2(zp), 2(zo)).
Clause letters covered in this article
| Clause | Term | Clause | Term |
|---|---|---|---|
| (a) | adjudicating officer | (r) | day |
| (b) | advertisement | (u) | engineer |
| (c) | agreement for sale | (za) | interest |
| (f) | Appellate Tribunal | (zc) | local authority |
| (g) | appropriate Government | (zd) | Member |
| (h) | architect | (ze) | notification |
| (i) | Authority | (zf) | occupancy certificate |
| (l) | Chairperson | (zi) | prescribed |
| (m) | commencement certificate | (zo) | regulations |
| (p) | competent authority | (zp) | rule |
| (q) | completion certificate | (zr) | words not defined in the Act |
The other 22 clauses are in the article on who is who and the article on built-form terms.
The three certificates
| Clause | Certificate | What the definition says |
|---|---|---|
| 2(m) | Commencement certificate | The commencement certificate, building permit or construction permit, by whatever name called, issued by the competent authority to allow the promoter to begin development works on an immovable property, as per the sanctioned plan |
| 2(q) | Completion certificate | The completion certificate, or such other certificate by whatever name called, issued by the competent authority certifying that the real estate project has been developed according to the sanctioned plan, layout plan and specifications, as approved by the competent authority under the local laws |
| 2(zf) | Occupancy certificate | The occupancy certificate, or such other certificate by whatever name called, issued by the competent authority permitting occupation of any building, as provided under local laws, which has provision for civic infrastructure such as water, sanitation and electricity |
All three are issued by the "competent authority", not by the RERA Authority. The definitions leave the names to local laws, so a certificate called by another name counts if it does the same job. The text does not say which of the completion and occupancy certificates comes first; that is a matter of local laws.
Competent authority (2(p)) means the local authority or any authority created under any law by the appropriate Government which exercises authority over land under its jurisdiction and has powers to give permission for development of the immovable property. Local authority (2(zc)) means the Municipal Corporation, Municipality, Panchayats or any other Local Body constituted under any law to provide municipal or basic services in its area.
Clause (za): interest
"Interest" means the rates of interest payable by the promoter or the allottee, as the case may be. The Explanation sets two rules:
- The rate of interest chargeable from the allottee by the promoter, in case of default, shall be equal to the rate the promoter is liable to pay the allottee in case of default.
- Interest payable by the promoter to the allottee runs from the date the promoter received the amount or any part of it till the date the amount or part, and interest, is refunded; interest payable by the allottee to the promoter runs from the date the allottee defaults in payment till the date it is paid.
| Direction | Starts | Ends |
|---|---|---|
| Promoter to allottee | Date promoter received the amount or part of it | Date the amount and interest are refunded |
| Allottee to promoter | Date allottee defaults in payment | Date it is paid |
The clause fixes no percentage. The rate is "prescribed" (see below) by the State rules, so it differs by State. Example. Rohan pays Rs 10,00,000 on 1 April and the money must be refunded. Under (za)(ii), interest is counted from 1 April, not from the date he demanded the refund. Our post on delay in possession and compensation shows where the interest rule is used.
Clause (r): day
"Day" means the working day, in the concerned State or Union territory, as notified by the appropriate Government from time to time. So periods counted in "days" in this Act (for example the thirty days in section 5) run in working days as notified, and the working-day calendar can differ by State. The text does not list the working days.
The institutions
| Clause | Term | Meaning |
|---|---|---|
| (a) | adjudicating officer | The officer appointed under section 71(1) |
| (f) | Appellate Tribunal | The Real Estate Appellate Tribunal established under section 43 |
| (i) | Authority | The Real Estate Regulatory Authority established under section 20(1) |
| (l) | Chairperson | The Chairperson of the Real Estate Regulatory Authority appointed under section 21 |
| (zd) | Member | A member of the Authority appointed under section 21, and includes the Chairperson |
For how they work together, see the Authority and the Appellate Tribunal.
Clause (g): appropriate Government
It differs by place, "in respect of matters relating to":
| Territory | Appropriate Government |
|---|---|
| Union territory without Legislature | the Central Government |
| Union territory of Puducherry | the Union territory Government |
| Union territory of Delhi | the Central Ministry of Urban Development, as printed |
| the State | the State Government |
The appropriate Government makes the rules and notifies the working days, so this clause decides whose rules you read. Check the current official text for any later change in the Delhi entry.
Clauses (zi), (zo), (zp), (ze): rules, regulations, notification
| Clause | Term | Meaning |
|---|---|---|
| (zi) | prescribed | Prescribed by rules made under the Act |
| (zp) | rule | Rules made under the Act by the appropriate Government |
| (zo) | regulations | Regulations made by the Authority under the Act |
| (ze) | notification | A notification published in the Official Gazette; "notify" is read accordingly |
The difference is practical. Where a section says "as may be prescribed", the State rules fix it. Where it says "as may be specified by regulations", the Authority's regulations fix it. Forms, fees and time limits for filing are in these, are not in the Act, and differ by State.
Clauses (b), (c): advertisement and agreement for sale
Advertisement means any document described or issued as an advertisement through any medium, and includes any notice, circular or other document or publicity in any form informing persons about a real estate project, or offering for sale a plot, building or apartment, or inviting persons to purchase or to make advances or deposits. It links to the false-advertisement rule in section 12.
Agreement for sale means an agreement entered into between the promoter and the allottee. The definition is short and does not list its contents; the content rules are elsewhere, as covered in our post on the mandatory clauses.
Clauses (h), (u): architect and engineer
- Architect: a person registered as an architect under the Architects Act, 1972.
- Engineer: a person with a bachelor's degree or equivalent from an institution recognised by the All India Council of Technical Education, a University or under a law, or registered as an engineer under any law.
Clause (zr): words not defined in the Act
Words and expressions used but not defined in the Act, and defined in any law for the time being in force or in the municipal laws or other relevant laws of the appropriate Government, have the meanings given in those laws. This fills gaps in the Act's vocabulary with the meaning those other laws give.
Need help with certificates or interest claims?
A missing completion or occupancy certificate, or an interest figure the builder has worked out on its own, usually needs the papers read side by side with the definitions. Our legal consultation team can review the certificates, your agreement and the State rules, and tell you what the Act allows.
Key takeaways
- Commencement, completion and occupancy certificates are all issued by the competent authority, not by RERA.
- The default interest rate chargeable from the allottee equals the rate the promoter pays on default (2(za)(i)).
- Interest on a refund runs from the date the promoter received the money (2(za)(ii)).
- "Day" means a notified working day; the calendar differs by State.
- Rules are made by the appropriate Government; regulations by the Authority.
Read next
- Section 2: who is who (promoter, allottee, agent, project)
- Section 2: built-form definitions (carpet area, common areas)
- Delay in possession: compensation under RERA
- RERA Authority and Appellate Tribunal
Disclaimer: Based on the Real Estate (Regulation and Development) Act, 2016 as enacted, as consulted on 1 October 2026. Rules, forms, fees and procedures are made by each State and Union territory and its Real Estate Regulatory Authority and differ from State to State. This article is general information, not legal advice; check the official text and your State's rules before acting.