RERA Cases
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RERA Cases
Updated on May 27, 2026 11:41:37 AM
Over the last decade many housing units and apartments coming up in your cities and areas. The real estate price has been sky rocketing. The demand for housing is ever increasing. Government schemes were unable to cope with the demand. Private players took over real estate industry by storm. They were non-sensitive to consumer needs. Unfair and one sided contracts left consumers helpless. Earlier Existing laws were not regulated to check the real estate sector in India. Consumers were being forced to sign discriminatory clauses. Developers used to enjoy unreasonable power. consumers could not get info & accountability from erring developers. Litemoffers the best legal services for RERA litigation in Delhi/NCR.
Thus after lot of deliberation, amendment & opposition, the Real Estate Act got passed. The main object of the Real Estate Act is to re-establish consumers’ confidence. Transparency and accountability is important to consumers. This act helps in assessing long term goals and financial capital markets.
The aim of the Real estate act is to promote and regulate real estate industry. Transaction are being regulated between promoter & buyer. Both industrial and commercial projects are being covered by this act.
Real Estate Regulatory Authority in short is RERA. It is the authority to handle real estate disputes. Every State in India has its own RERA check and regulate real estate projects. This act aims to protect buyers’ interests. It helps buyers to invest in real estate ensuring transparency & accountability from developers.
It led to RERA in every State. Incorporation & establishment of Real Estate Regulatory Authority in every State is in existence. RERA is the authority to track and handle real estate project disputes.
The Act led to establishment of fast track dispute resolution mechanism. It is helpful to settle disputes through Appellate Tribunal and adjudicating officers.
All real estate projects’ registration with RERA is mandatory. No real estate property can get sold without RERA registration. Projects which do not meet RERA provisions can get rejected. RERA registration is cancel-able on receipt of authentic complaints.
Promoters need to upload project details on the RERA website. The details include apartment type, number of units, list of approvals, commencement certificate, project status, and layout plan.
Approval or rejection of application by RERA can happen within 30 days of application. Beyond this time it gets considered as approved.
Promoter cannot accept more than 10% advance amount of apartment/plot/building cost. To begin with, the promoter has to enter a written sale agreement with the buyer, register the agreement, and then only accept advance from buyers.
Promoter should deposit 70% of project amount into a separate account. This money should cover land and construction costs. Promoters can withdraw the amount after certification from an engineer, architect, and Chartered Accountant.
It is mandatory for all promoters to get an insurance policy for all projects.
Promoter can’t transfer rights & liabilities to a third party without 2/3rd buyers’ consent. RERA approval is also necessary.
Buyer & promoter have equal interest obligations upon default by either party.
The promoter has to compensate the buyer for any loss in land title of the project.
A person can file a complaint against the buyer, real estate agent, or promoter for violations of the Real Estate Act.
RERA has power to restrain the act of buyer, promoter or agent during inquiry. It can stop them from continuing the complained act.
In case a person is not happy with orders of RERA, they can appeal with the Appellate Tribunal of their state.
Promoters violating the Act can get imprisonment up to 3 years, a fine of up to 10% of the project estimate, or both.
A person who fails to follow RERA directions is liable to a penalty of up to 5% of the estimated project cost.
A company can be held responsible for an offence. Every responsible person in the company, along with the company itself, is liable under RERA.
Civil courts cannot take up cases that fall under RERA or its Appellate Tribunal. No court can grant injunctions related to matters under the Real Estate Act.
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