The document discusses the objectives and key provisions of the Real Estate (Regulation and Development) Act (RERA) 2016 in India. It aims to regulate and promote the real estate sector, protect home buyers, and ensure timely delivery of projects. Key points of the RERA Act include mandatory registration of real estate projects, deposit of 70% of project funds in escrow accounts, limits on advance payments to developers, establishment of regulatory authorities at the state level, an appellate tribunal for disputes, penalties for project delays, and imprisonment for violations of orders. Judicial cases have upheld the need for full compliance of the RERA Act by developers. The conclusion states that RERA aims to increase transparency for home buyers and

1. OBJECTIVES OF
RERA
REAL ESTATE (REGULATION AND DEVELOPMENT)
ACT (RERA) 2016

2. RERA IS AN ACT FOR REGULATION AND PROMOTION
OF THE REAL ESTATE SECTOR TO ENSURE THE
CLOSEOUT OF APARTMENT, PLOT OR BUILDING IN AN
EFFECTIVE AND STRAIGHTFORWARD WAY. THE ACT
INTENDS TO SECURE THE ENTHUSIASM OF
CONSUMERS. IT WAS ENACTED BY THE PARLIAMENT
IN MAY 2016 AND THE ACT HAS COME INTO POWER
WITH ALL ITS 92 SECTIONS FROM 1ST MAY 2017.
WHAT IS RERA ?

3. NEED FOR RERA
The Act clarifies the relationship between property buyers and developers.
It lays down the process of establishing trust between suppliers and
purchasers. It has even created a state agency to oversee real estate and
business transactions.
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Real estate
sector had
been largely
unregulated,
no
standardizati
on of
business
practices
and
transactions
Prevalence
of issues like
delays,
price,
quality of
construction
.
No grievance
redressal
mechanism
Numerous
instances where
developers
cheated property
buyers
huge cost
overrun due
to delays

4. OBJECTIVES OFTHE
ACT
• Enhance transparency and
accountability in real estate and
housing transactions.
• Boost domestic and foreign
investment in the real estate sector.
• Provide a uniform regulatory
environment to ensure speedy
adjudication of disputes.
• Promote orderly growth through
efficient project execution and
standardization.
• Offer a single-window system of
clearance for real estate projects.
• Empower and protect the rights of
home buyers. 4

5. IMPORTANT SECTIONS
OFTHE RERA ACT, 2016
• Mandatory Registration (Section 3) –
Regulatory Authorities require all
projects with a plot size of at least
500 square metres or eight flats to be
registered.
• Deposits – Placing 70% of the monies
accumulated from the buyer shall be
deposited in a separate escrow
account dedicated solely for the
construction of that project.
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6. • Ceiling on advance payments (Section 13) –
Without initially entering into a sale
agreement, a promoter cannot receive more
than 10% of the cost of the plot, apartment,
or building as an advance payment or an
application fee from a person.
• State-level regulatory authorities (Section
20) –The Real Estate Regulatory Authority
(RERA) is established at the state level. The
Act allows state governments to create
multiple regulatory authorities, each with
the following mandate:
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7. 7
• Register and maintain a database of real estate developments and make it available for public inspection on the
company’s website;
• Protection of interests of promoters, real estate agents, and buyers;
• A housing development that is both sustainable and affordable; and
• Provide advice to the government and ensure adherence to the Act and its regulations.
Real Estate Appellate Tribunal (Section 43) – The decision of the Real Estate Regulatory
Authorities can be appealed to the tribunals established for each state under the Act
including its composition, application for settlement of the dispute, qualifications for
chairperson and members, powers of tribunal and vacancies of the Appellate Tribunal.

8. 8
Penal interest on default (Section 61) – Both the promoter and the buyer are responsible to pay an equal
rate of interest in the event of either party’s default.
Punishment (Section 66) – For violations of orders of Appellate Tribunals and Regulatory Authorities,
developers can face up to three years in prison while agents and buyers can face up to one year in
prison or a fine for every day during which the default continues, which may extend cumulatively
extend up to ten per cent of the estimated cost of the plot, apartment or building of the real estate
project.

9. JUDICIAL INSIGHTS
GEETANJALIAMAN
CONSTRUCTIONSV.
HRISHIKESH RAMESH
PARANJPE
In this case, the issue was about project
registration and the dispute was with
regard to Section 3 of RERA.
The question before the court was to
interpret Section 3(2) and it held that
Section 3(2) will be interpreted in its truest
sense now and that the developer needs to
satisfy both the conditions to get approval.
The question, in this case, was whether an
allottee can demand a refund while
withdrawing from a project which was
nearing completion. The Authority in his
opinion held that it not only protects the
interest of the buyers but promotes orderly
growth of the real estate industry through
efficient project execution in the interest of
the larger public.
BALDEV SINGHV. ULTRATECH
TOWNSHIP DEVELOPERS PVT
LIMITED, 2020
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10. CONCLUSION
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The existence of RERA is not only protecting the interests of
the home buyers but also benefiting the builders because
of the greater transparency. The concept of RERA is
flawless if implemented as it is but because of the non-
compliance of the rules by some of the states and the
developers, it becomes very difficult to fulfill the exact
purpose of RERA. The introduction of RERA Act is a huge
step forward that is why the state Regulatory Authority
needs to frame the rules according to the Act and not
divert them in builders favour.

11. THANKYOU!