RERDA Presentation

RERDA, 2016
• CA NITIN PATHAK
• President , ISACA Chapter Ahmedabad
• DATE: 26th FEB, 2021
• Please visit blog for past PPT/You tube presentation/Zoom Seminar Registration
• canitinmpathak.blogspot.com & CA Nitin Pathak
• Please to support and get supported in ISACA Chapter Ahmedabad activities.
• SMS/WhatsApp: 98258 04094/nitinmpathak@gmail.com
• Disclaimer: Opinions are personal.
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Pre-RERA: State of Real Estate Sector
Pre-RERA, the Sector was completely unorganized and unregulated sector with
multiple challenges:
• Information asymmetry to the citizen
• Sundry Abuses and Malpractices
• Real Estate Transactions were lopsided and heavily in favour of developers
• No Proper Forum for Grievance Redressal for Consumers
• Huge Delays in Real Estate projects completion

RERA aims at ushering an era of 3Ts
in the Real Estate Sector
• Transparency:
• Removal of information asymmetry and opaque practices with online disclosures in public
domain and empowering citizens to make informed choice
• Trust:
• Bridging trust deficit between promoters and buyers
• Speedy Grievance redressal through Quasi-judicial process &/or conciliation
• Timely Project Completion:
• Registered projects both ongoing pre RERA projects and new projects need to be
completed in their stipulated time

Stakeholders under RERA, 2016
Land Owner Developer
Competent
Authority
Estate Agent/
Advertisement
Customer
Chartered
Accountant
Engineer/
Contractor
Architect

Objects of the Real Estate(R &D) Act, 2016
Objects of the
RERDA, 2016
Appellate
Tribunal
Regulatory
Authority
Regulation &
Development
Transparency
and Efficiency
Protecting
Consumer
Interest

THE SALIENT FEATURES OF THE RERDA-2016
• To Establish a Regulatory Authority
• Mandatory public disclosure norms
• Obligations of promoters
• Obligation of allottee
• Powers to make Regulations, Direction
• Dispute resolution mechanisms
• Penal provisions

Citizen Centricity, Transparency,
Financial Discipline, Accountability & Compliance
What it entails?
• Sharing project layout plan, approvals, proposed development work & facilities,
proforma allotment letter & agreement etc.
• Increased assertion on the timely completion of projects and delivery to the
consumer
• Defect liability period of five years for structural defects, defect in workmanship,
quality or provision of services or other obligations
• Formation of legal entity of allottees within three months after majority of the
units booked
• Quarterly update of RERA website with details such as unsold inventory and
pending approvals
• Conveyance of title within 3 months of Occupation/Completion Certificate

What it entails?
• Consent of 2/3rd allottees or for any other addition or alteration
• Consent from affected allottees for any major addition or alteration
• Sale agreements as per model form. Increased assertion on the timely
completion of projects and delivery to the customer
• Informing allottees for any minor addition or alteration
• No false statements or commitments in advertisements
• 70% of the funds collected from allottees need to be deposited in the project
account
• Withdrawals, to cover construction and land cost, to be in proportion to the % of
completion of project (Architect, Engineer and CA certified)

What it entails?
• Developers to share on RERA website details of projects launched in last 5 years
with status and reason for delay
• Withdrawals to be certified by Engineer, Architect and CA
• Provision for RERA to freeze project bank account upon non-compliance
• Project Accounts to be audited annually by statutory Auditor CA;
• Provision for stronger financial penalties for RERA non-compliances
• Maximum 1 year extension in case of delay due to no fault of developer.
• Unbiased Interest on delays.
• Promoter to compensate buyer for any false or incorrect statement along with a
full refund of property cost with interest

FUNCTIONS AND DUTIES OF PROMOTER
• Register new and ongoing projects with RERA
• Make disclosures in accordance with the Act, Rules and Regulations
• Update quarterly the disclosures made at the time of registration
• Ensure that advertisements, brochures, prospectus issued or published mentions
RERA registration number and RERA website address
• Display sanctioned plans, layout plans etc. at the project site.
• Be responsible for all the obligations, responsibilities and functions under the
Act, Rules and Regulations and in accordance with the agreement for sale.

FUNCTIONS AND DUTIES OF PROMOTER
• Be responsible for completion of the project, obtaining Occupation Certificate.
• Be responsible for providing and maintaining essential services till they are taken
over by association of allottees
• Enable formation of legal entity of allottees
• Execute conveyance deed with the legal entity of allottees
• Adhere to the fiscal discipline and comply with the provisions of the Act, Rules
and Regulations.
• No deposit or advance more than 10% to be taken by promoter without first
entering into agreement for sale.

OBLIGATION OF THE PROMOTER WITH ALOTTEES
Contractual Obligations
• Enter into Agreement
• Registration of Agreement
• Receive the Flat Consideration
• Hand over the Possession of flat as
agreed
Statutory Obligations
• Register Agent on Receipt of Advance
• Complete the Building in all respect
• Provide O.C., B.U.
• Provide Common Facilities
• Water Connection
• Electric connection
• Disclose the information
• Provide all Documents
• Registration of Society / Legal Body
• Providing Conveyance

RIGHTS AND DUTIES OF ALLOTEES
• Allottee is entitled to obtain all the relevant information as provided in the Act,
Rules and Regulations and the agreement for sale signed with the promoter.
• Allottee is entitled to know the detailed stage wise progress of the project
including the facilities, amenities and services.
• Allottee is entitled to claim possession of the apartment or plot and the
association of allottees entitled to claim possession of common areas as
disclosed and agreed by the promoter.
• Allottee is entitled to penal interest on entire amount paid, for every month of
delay, till the handing over of the possession.

RIGHTS AND DUTIES OF ALLOTEES
• Allottee is entitled to claim compensation for violation of provisions of sections
12, 14, 18 or 19 of the Act.
• U/s12. Obligations of promoter regarding veracity of the advertisement or prospectus.
• U/s14. Adherence to sanctioned plans and project specifications by the promoter.
• U/s18. Return of amount and compensation.
• U/s19. Rights and duties of allottees.
• Allottee is responsible for making necessary and timely payments in accordance
with the agreement for sale.
• Allottee shall be liable to pay interest for any delay in payment.
• Allottee shall participate in the formation of the legal entity of allottees.
• Allottee shall take possession of apartment or building after OC, within 2 months.
• Every allottee shall participate towards registration of conveyance deed.

RIGHTS OF ALLOTTEES
Rights
Right to
information &
documents
Sanctioned plans,
documents of
insurance
Right to obtain
certificates
Completion,
occupancy & Lease
Right to claim
compensation
Breach of
agreement &
defective title
Right to withdraw
from project
Alterations, trf. To
3rd party or
registration
revoked
Right to execution
of registered
Satakhat
(agreement to sale)
If more than 10%
advance
demanded

Before
booking,
verify
builder’s
registration
Not to pay more
than 10% of cost
before agreement
and payment
should be made
by banking
channels only.
DUTIES
OF
ALLOTTEES
Not to buy
apartment
in
unregistered
projects
To take
physical
possession
within a period
of 2 months
receiving
occupancy
certificate
To participate
in registration
of
conveyance
deed
To
participate
in
formation
of
association
To make
necessary
payments as
per Satakhat &
interest for
delay thereon
DUTIES OF ALLOTTEES

FUNCTION OF REAL ESTATE AGENT
• Register with RERA with necessary details as prescribed in the Rules.
• Not facilitate any sale or purchase of any plot, apartment or building in a real
estate project which is required to be registered but not registered.
• Not involve in any unfair trade practice namely:
I. False representation that his services are of a particular standard or grade
II. Representation that the promoter or he has approval or registration which such
promoter or he does not have
III. Make false or misleading representation concerning services
• Not publish any advertisement of services that are not intended to be offered.
• Facilitate the possession of all the information and documents as the allottee is
entitled to, at the time of booking

FUNCTIONS OF REGULATORY AUTHORITY
ADJUDICATION
• Settle disputes amongst allottee themselves
• Settle disputes b/w allottee & promoters
• Recovery of Penalties
PROMOTER
• Granting Registration
• Maintain website
• Compliance of Obligations
• Enter names of defaulter developers on the website
REGULATORY & RULE MAKING
• Ensure compliance of directions
• Recommendations
• Advise to appropriate govt.
• Making Enquiries
CONSUMERS
• Promote transparent, efficient &
• competitive real estate sector
Functions of RA
towards

OFFENCES AND PENALTIES
SECTION NO. PARTICULARS
59 Punishment for non-registration by promoter
60 Penalty for contravention of sec 4: Application for registration of real estate
projects
61 Penalty for contravention of other provisions of this Act.
62 Penalty for non-registration and contravention by Real Estate Agent
63 Penalty for failure to comply with orders of Authority by promoter.
64 Penalty for failure to comply with orders of Appellate Tribunal by promoter.
65 Penalty for failure to comply with orders of Authority by real estate agent.
66 Penalty for failure to comply with orders of Appellate Tribunal by real estate
agent.
67 Penalty for failure to comply with orders of Authority by allottee.
68 Penalty for failure to comply with orders of Appellate Tribunal by allottee.
69 Offences by companies.

OFFENCES AND PENALTIES
• The court shall, for the purposes of compounding any offence accept a sum of money as specified in the Table below:
• On payment of the sum of money in accordance with the table above, any person in custody in connection with that
offence shall be set at liberty and no proceedings shall be instituted or continued against such person in any court.
• The promoter, allottee or real estate agent, as the case may be, shall comply with the orders of the regulatory authority
or the Appellate Tribunal, within the period specified by the court, which shall not be more than 30 days from the date
of compounding of the offence.
Offence Money to be paid for compounding the offence
Punishment for non-registration 5% of the estimated cost of the real estate project
Penalty for failure to comply with orders of
Appellate Tribunal by promoter
5% of the estimated cost of the real estate project
Appellate Tribunal by real estate agent
5% of the estimated cost of the plot, apartment or building,
as the case may be, of the real estate project, for which the
sale or purchase has been facilitated
Appellate Tribunal by allottee
5% of the estimated cost of the plot, apartment or building,
as the case may be

VARIOUS FORMS UNDER RERDA, 2016
FORM NAME PARTICULARS OF THE FORM
FORM A APPLICATION FOR REGISTRATION OF PROJECT
FORM B DECLARATION, SUPPORTED BY AN AFFIDAVIT, WHICH SHALL BE SIGNED BY THE PROMOTER OR ANY PERSON
AUTHORIZED BY THE PROMOTER Under Rule 3(4).
FORM C REGISTRATION CERTIFICATE OF PROJECT
FORM D INTIMATION OF REJECTION OF APPLICATION FOR REGISTRATION OF PROJECT / REJECTION OF APPLICATION
FOR EXTENSION OF REGISTRATION OF PROJECT / REVOCATION OF REGISTRATION OF PROJECT
FORM E APPLICATION FOR EXTENSION OF REGISTRATION OF PROJECT
FORM F CERTIFICATE FOR EXTENSION OF REGISTRATION OF PROJECT
FORM G APPLICATION FOR REGISTRATION OF REAL ESTATE AGENT
FORM H REGISTRATION CERTIFICATE OF REAL ESTATE AGENT
FORM I INTIMATION OF REJECTION OF APPLICATION FOR REGISTRATION OF REAL ESTATE AGENT / REJECTION OF
APPLICATION FOR RENEWAL OF REGISTRATION OF REAL ESTATE
FORM J APPLICATION FOR RENEWAL OF REGISTRATION OF REAL ESTATE AGENT
FORM K CERTIFICATE OF RENEWAL OF REGISTRATION OF REAL ESTATE AGENT

PROJECTS NOT REQUIRED TO BE REGISTERED
Completion certificate not
obtained on 01.05.2017
Completion certificate not obtained within 3
months of commencement of the Act
The project is for the purpose of
Renovation or Repair or Re
development which does not
involve marketing, advertising
selling or new allotment of any
apartment, plot or building, as the
case may be, under the real estate
project.
Does not exceed 8
units (inclusive of all
phases)
Project is developed
beyond planning
area [section 2 (zh)]
Does not exceed 500
Sq. m area
Completion certificate obtained within 3
months commencement of the Act
Completion certificate obtained
before 01.05.2017
*The projects which do not fall in the above criteria are required to be registered under the RERA u/s 3*
RERA can ask anyone not within planning area or anyone else to register under RERA.
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Planning Area: TP scheme or designated area by
authority.

REGISTERATION PROCESS UNDER GUJRERA
The project registration process to be done on: https://gujrera.gujarat.gov.in/
Following stages are involved in procuring project registration:
• STAGE 1 PROMOTER DETAILS
• STAGE 2 PROJECT DETAILS: FOR REGISTRATION
• STAGE 3 BLOCK DETAIL ENTRY AND FORM-1 (ARCHITECT CERTIFICATE)
• STAGE 4 FORM-2 (ENGINEER CERTIFICATE)
• STAGE 5 FORM-3 (CA CERTIFICATE)
• STAGE 6 PROJECT DOCUMENT UPLOADS
• STAGE 7 PAYMENT: ONLINE PAYMENT ON SBI E-PAY (ONLINE GATEWAY)
• STAGE 8 CONFIRMATION (REQUEST FOR ACKNOWLEDGEMENT) ON APPLICATION SUBMISSION
The certificates to be issued by the project architect, project engineer, chartered accountant in practice for
withdrawal of money from the separate account maintained shall be in Form 1, 2 and 3 respectively.
The certificate required to be issued by the Project Architect/Project Engineer on completion of each of the
building/wing of the real estate project shall be in Form 4.
**The details of all the stage can be found in User Manual for project registration available on the above mentioned
website.**

STAGE 1 PROMOTER DETAILS
• 1. Promoter details: Type of promoter, Name, Pan No., Email, Mob. No., Address,
Company Registration No. (Applicable in case of Firm),
• 2. Authorized signatory: Name, Email-ID, Mobile No. , Address, Photograph.
• 3. Project head: Name, Email, Mobile No., Address, and Photograph.
• 4. RERA Reg. No. (Other States/UTs): If applicable of other state or other project.
• 5. Previous project Detail: Last five Years: Project name, Project description,
Current status, Type of land, Address.

STAGE 2 PROJECT DETAILS: FOR REGISTRATION
Project Name, Project Description, Project Type, Project Status, Project Start Date and project End Date, Total Area
of Land, Total Open Area, Total Covered area, Project Address, Authority, Physical Application Submission Office,
Application No. Garage Available for Sale, Total Area of Garage, No. of Open Parking, Area of Open Parking, No. of
Covered Parking, Total Area of cover Parking, Estimated cost of construction (INR),Land Cost(INR),Total Project Cost
(INR).
• Development Details for Registration: Type of Inventory, No. of inventory Available for Sale ,Carpet Area (sq.mtr.),
Area of exclusive balcony/verandah(sq.mtr.), Area of exclusive open terrace (sq.mtr.).
• Internal Development Work for Registration: Road system, Water Supply, Sewage and Drainages, Electricity
supply, Solid Waste Management
• Project Agent Detail for Registration if Applicable: Agent Registration No. of RERA, Agent Name, Agent Address.
• Project Architect Detail for Registration: Name, Email Id, Address, No. of key Projects completed, Reg. No. With
COA.
• Project Structural Engineer Detail for Registration: Name, Email Id, Address, No. of key Projects completed, Local
Authority License No.
• Project Contactor Detail for Registration: Name, Email Id, Address, No. of key Projects completed, Year of
Establishment.

STAGE 3 BLOCK DETAIL ENTRY AND FORM-1 (ARCHITECT
CERTIFICATE)
• FORM-1
• ARCHITECT’S CERTIFICATE (On Letter Head)
• To be submitted at the time of Registration of Ongoing Project and for withdrawal of
Money from Designated Account.
• Percentage of work executed with respect to each activity in the entire project and remarks
thereon.
• TABLE - A
• Project Block Details: No. of blocks and names thereof
• Details pertaining to each block separately
• TABLE – B
• Internal & External Development Works in Respect of the entire Registered Phase

STAGE 4 FORM-2 (ENGINEER CERTIFICATE)
• ENGINEER’S CERTIFICATE (On Letter Head)
• To be submitted at the time of Registration of Ongoing Project and for withdrawal of Money
from Designated Account – Project wise)
• Total Estimated Cost of completion of the building(s) (Total of Table A and B) (INR), Estimated
Cost Incurred till date (Total of Table A and B) (INR), Balance Cost of Completion of the Civil,
MEP and Allied works of the Building(s) (Total of Table A and B) (INR), Name of Engineer, Local
Authority license No., Local Authority license No. valid till (date picker), Date of Physical Visit to
site (date picker)
• TABLE - A
• Project Block Details: No. of blocks and names thereof
• Details pertaining to each block separately
• TABLE – B
• Internal & External Development Works in Respect of the entire Registered Phase
• TABLE – C
• List of Extra/Additional Items executed with Cost (Which were not part of the original Estimate of Total
Cost)

STAGE 5 FORM-3 (CA CERTIFICATE)
• CHARTERED ACCOUNTS CERTIFICATE (On Letter
• To be submitted at the time of Registration of Ongoing Project and for withdrawal of Money
from Designated Account – Project wise)
• CERTIFYING:
• Land Cost and Development Cost qua Estimated and Actual cost incurred.
• Total Estimated Cost and Incurred Cost
• Percentage of completion of Construction Work
• Proportion of the Cost incurred and paid on Land Cost and Construction Cost to the Total Estimated Cost.
• Amount which can be withdrawn from the Designated Account Total Estimated Cost x Proportion of cost
incurred and paid
• Amount withdrawn till date of this certificate as per the Books of Accounts and Bank Statement
• Net Amount which can be withdrawn from the Designated Bank Account under this certificate
• Additional information on Booked and un-Booked inventory.

STAGE 6 PROJECT DOCUMENT UPLOADS
(AS PER KEY DOCUMENT CHECKLIST FILE)

FINALISATION AND GENERATION OF ACKNOWLEDGEMENT
• The Applicant is required to file registration in FORM-A, with supporting documents in FORM-B.
• The application will be supported by the certification provided by Architect (FORM-1), Engineer
(FORM-2), and Chartered Accountant in Practice (FORM-3).
• Further the payment will be made on SBI e portal as per following table:
• After the Payment is made, generate Acknowledgement for future reference.
• The Regulatory Authority will Either:
• Accept the form and provide Registration certificate in FORM-C.
• Reject the form via FORM-D
TYPE OF PROJECT SPACE OF LAND WHICH IS BEING
DEVELOPED
FEES PER Sq. Mt.
(A) GROUP OF RESIDENTIAL PROJECT
LESS THAN 1000 Sq. Mt. 5 RUPEE PER Sq. Mt. :Max 5 LACS Rs.
MORE THAN 1000 Sq. Mt. 10 RUPEE PER Sq. Mt. :Max 5 LACS Rs.
(B) RESIDENTIAL AND COMMERCIAL
MIX DEVELOPMENT PROJECT
(C) ONLY COMMERCIAL PROJECT
(D) PLOT DEVELOPMENT - 5 RUPEE PER Sq. Mt. :Max 2 LACS Rs.

CHALLENGES IN POST RERA ERA
Challenges faced by RERA
• Ensuring registration of Projects and Agents
• Ensuring Compliance to provisions of Act by Registered Projects
• Ensuring execution of Orders passed
• Dealing with legacy issues of pre-RERA projects and easing the pain of transition
• Invoking Section 7 and Section 8 of the Act for project completion of
stressed/stalled projects
• Creating general awareness regarding RERA

CHALLENGES IN POST RERA ERA
Key Challenges faced by Industry
• Highly decentralized operations and inconsistent governance practices across the
industry value chain Ensuring Compliance to provisions of Act by Registered
Projects
• Considerable reliance on third parties across the industry value chain
• Need for timely and simplified approvals from Competent Authorities
• Liquidity and lack of financing of Projects in the NBFC crisis
• Delays in Project Completion
• Reduced Sales / Correction in Real Estate Sector

Thanks you all for being with me
QUESTIONS IF ANY?
E-mail: NITINMPATHAK@GMAIL.COM
CALL: 9825804094
BLOG: CANITINMPATHAK.BLOGSPOT.IN

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