RERA for Real Estate Developers

In order to escalate the responsibility and accountability towards consumers the RERA has mandated real estate developers (also known as real estate
promoters) to register the project (measuring more than 500 square meters or more than eight apartments) and obtain a valid registration number before
proceeding. He/she is not permitted to market, advertise or sell the units before the registration of the project. If the project is to be developed in phases then the developer have to obtain registration for each phase separately.

The developer is required to submit all the necessary documents related to the project as prescribed by RERA. It is mandatory for a real estate developer to open an escrow account in a bank recognized by the government and must deposit 70% of the total payment received from the consumer. He/she can withdraw the money and should solely use it for the development of the said project after getting it approved from an engineer, architect or chartered accountant.

If the developer fails to comply with the directions or violates the rules prescribed by RERA or the Appellate Tribunal then, he/she may face imprisonment up to three years with a fine of up to 10% of the total estimated cost of the project in question.