The Real Estate (Regulation and Development) Act, 2016

Introduction:
RERA Bill, 2013  RERA Bill, 2016  RERA Act, 2016: A Journey 2
Genesis and Enactment of RERA 3
Jurisdiction for Enactment of RERA – Whether the act is Retrospective or retroactive? 4
At a Glance – the RERA Act, 2016 | Index - Chapter I to Chapter X 5

Objectives Behind Enactment and Application of RERA:

Objective | Authority – Transparency – Protect consumer interest – Appellate tribunal 5

Applications | * See the detailed page-by-page list of Keywords at the end 6
Penalties under RERA | On Promoters, On Real Estate Agents 11
Penalties contd. | On Allottees, On Companies 12
Application of RERA contd. 13

Scope and Benefits

Scope 13-14
Benefits 14-15

Definitions

~ All the Definitions are in the Alphabetical order 15-27

SEC 3(1): Prior registration of project with RERA (can’t advertise, market, sell, OFS, etc.. w/o registering) 27
SEC 3(2): Exemptions from registration 28
SEC 4: Application for Registration | 4(1) – promoter registers | 4(2): Documents | 4(3): Online system 29
4(l) – declaration in affidavit – 70% of money to be deposited in separate account 30
Examples 31
SEC 5: Grant of Registration – within 30 days | Deemed Reg | Validity 32
SEC 6: Extension of Registration [‘force majeure’] – not more than 1 year extension 33
SEC 7: Revocation of Registration [4 reasons – Pg. 34] | “Unfair practices” Defined
7(2): Notice before revocation – 30 days | 7(4): Effect of Revocation 34
Examples – consequences of revocation (no website access, Bank Ac freeze, more…) 35
SEC 8: Obligation of Authority consequent upon lapse or on Revocation of Registration (Finish the develop…) 36
SEC 9: Real Estate Agents (REAs) – Compulsory/ Reg. No/ Deemed/ Authority/ Validity/ Breach of condition 37
SEC 10: Functions of REAs** - 5 things 37-38
FUNCTIONS, DUTIES AND OBLIGATION OF PROMOTER
SEC 11: Functions and Duties
(1) – Put Details on the website
(2) – Website address on every advertisement
38-40
(3) – Information to be shared with allottee
(4) – Responsibilities (structural defect/ CC/ Lease certificate/ essential services/ formation of association
– 3 months/ execute reg. conveyance deed/ pay all outgoing/ can’t mortgage after AFS)
SEC 12: Obligation regarding Veracity of Advertisement or Prospectus 41
SEC 13: No deposit/ Advance to be taken without first entering into Agreement for Sale – (upto 10% adv)
41-42
Particulars of Agreement | Examples – Clause to be included in Agreement for Sale
SEC 14: Adherence to sanctioned plans and Project Specs by Promoter 42
(1): Adhere to approved plans | (2): Disclosure of approved plans | (3): Rectify defects within 5 years 43
Minor alterations allowed – 2/3rd Allottee approval. (# No of people NOT No. of apartments) 43
SEC 15: Obligation in case transfer of RE Project to 3rd Party 44
(1): Restriction on transfer | (2): New promoter - comply the pending obligation | Examples 45
SEC 16: Insurance of the Project | **Common areas – Association of Allottee
SEC 17: Transfer of title (Example – Responsibilities of promoter in relation to trf. Of title) 46-47
(2): Handing over documents – within 30 days of completion
SEC 18: Return of amount and compensation
(1): consequence of failure to give possession | (2): compensate allottee | (3): Failure to discharge obligation 48-49
SC Judgement – options with allottee – compensation with interest and more…

RIGHTS AND DUTIES OF ALLOTTEE

SEC 19(1) to (5) Rights --> sanctioned plan, completion status, claim refund/ possession, obtain documents 49
(6) to (11) Duties --> pay interest (can be waived), formation of association/ physical possession – 2 months 50
Examples 51

THE REAL ESTATE REGULATORY AUTHORITY

SEC 20: Establishment of Authority & Structure 51
SEC 21: Composition of Authority | SEC 22: Qualifications of Chairperson and Members
52-54
SEC 23: Terms of Office | SEC 24: Salary and Allowances | SEC 25: Administrative Powers | SEC 26: Removal
SEC 27: Restriction on employment after cessation of office
55-56
SEC 28: Officers and Other employees | SEC 29: Meetings | SEC 30: Vacancies; not to invalidate proceedings
SEC 31: Filing of complaints | SEC 32: Functions for promotion of Real Estate Sector 57
SEC 33: Advocacy and awareness | SEC 34: Functions of Authority | SEC 35: Power to call for Information
58-59
SEC 36: Power to Issue Interim Orders | SEC 37: Issue Directions | SEC 38: Powers of Authority
SEC 39: Rectification of Orders | SEC 40: Recovery of Interest/ Penalty/ Compensation & Enforcement** 60

CENTRAL ADVISORY COUNCIL

SEC 41: Establishment of Council 61
SEC 42: Functions 62
THE REAL ESTATE APPELLATE TRIBUNAL
SEC 43: Establishment of Appellate Tribunal (Promoter – deposit at least 30% of penalty)
63
Promoter/ REA/ Allottee – Can go to tribunal against an order passed
SEC 44: Application for settlement of dispute and appeals (60 days – order) – if not, reasons
SEC 45: Composition of AT 64-65
SEC 46: Qualification
SEC 47: Term of Office – 5 years – no re-appointment | 67 years limit
SEC 48: Salary and Allowances 66-67
SEC 49: Removal of Chairperson – OOBH and Inquiry
SEC 50: Restriction on employment after cessation | SEC 51: Officers and other Employees
68-69
SEC 52: Vacancies | SEC 53: Powers of Tribunal
SEC 54: Administrative power of chairperson of AT | SEC 55: Vacances; not invalidate proceedings
SEC 56: Right to Legal representation | SEC 57: Orders by AT to be executed as Decree 70-71
SEC 58: Appeal to High court – 60 days

OFFENCES, PENALTIES AND ADJUDICATION

SEC 59: Punishment – Non-Registration u/s 3 (upto 10% of est. cost)
Non-compliance: up to 3 years imprisonment + Further 10% penalty
SEC 60: Contravention of Sec 4 (upto 5% of est. cost) | SEC 61: Contravention other provisions (upto 5%) 72

SEC 62: Non-registration under sec 9 & 10 (REAs): ₹ 10,000 per day --> max 5% of cost

SEC 63: Failure to comply with order of {Authority} by {Promoter} – daily penalty – max upto 5%
SEC 64: Failure to comply with order of {Appellate Tribunal} by {Promoter} – 3 yrs prison | daily – max 10%
SEC 65: Failure to comply with order of {Authority} by {REA} – daily | max – 5%
SEC 66: Failure to comply with order of {Appellate Tribunal} by {REA} – 1 yr prison | daily – max 10% 73-74
SEC 67: Failure to comply with order of {Authority} by {Allottee} – daily | max – 5%
SEC 68: Failure to comply with order of {Appellate Tribunal} by {Allottee} – 1 yr prison | daily – max 10%
SEC 69: Offences by Companies | SEC 70: Compounding of Offences

IMP NOTE: Limits under above penalty – For Promoter (% of est. cost) for REA and Allottee (% of cost of land/
building/ apartment)

SEC 70: Compounding of Offences | SEC 71: Power to Adjudicate | SEC 73: Factors to take into account by AA 75-76

FINANCE, ACCOUNTS & AUDIT REPORT [Sec 74 to 78] 77-78

MISCELLANEOUS [Sec 79 to 92] 79-86