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Real Estate (Regulation & Development) Act, 2016
Real Estate (Regulation & Development) Act, 2016
Real Estate (Regulation & Development) Act, 2016
• Rajya Sabha Passed the Bill on 10/03/16 and Lok Sabha Passed the bill
on 15/03/16.
• The funds have to be used only for the construction or land cost
pertaining to the same project.
Changes proposed with respect to BUA
• If the homebuyer wishes to stay invested, the promoter must pay the
interest for every month of delay as compensation.
Rules pertaining to structural defects in
the project
• The promoter will have to rectify any structural defects, caused by
poor workmanship, quality or provision of services, brought into
notice within 5 years from date of possession. Allotters need not pay
any additional charge for rectification and will have to be carried out
within 30 days of filing the complaint. Failure to do so will entitle the
allotters to seek relevant compensation as mentioned in the ACT.
Will the allotter be penalized in case of
delayed payment?
• In case of a delay in payment from the allotter, the ACT enforces
similar stringent action. The allotter will be liable to pay a similar
monthly interest as compensation to the builder if they default in
making timely installments. Continued violations post issuance of a
notice gives promoter right to terminate the allotment of the
property and refund the amount collected after deducting the
booking and interest amounts respectively.
Implementation Progress
So far, only 19 states and union
territories have notified rules
on Real Estate (Regulation and
Development) Act, 2016
(RERA).
Thank You