UP RERA

Real Estate Regulatory Authority (RERA) — Overview

The Real Estate Regulatory Authority (RERA) was established to improve transparency, accountability, and fairness in India’s real estate sector. It aims to protect homebuyers, address complaints, and resolve common problems like project delays and mis-selling. A major objective of RERA is to ensure fair dealings between buyers and developers.

Under the RERA framework, all builders must register their projects before starting construction, and real estate agents and brokerage firms are also required to register. Each state has its own RERA authority responsible for monitoring projects and resolving disputes. Importantly, RERA provides a fast-track dispute resolution mechanism through an appellate tribunal.

About the RERA Act

The Real Estate (Regulation and Development) Act, 2016 was enacted under Section 84 to enable state governments to set rules for implementation.

Passed by the Rajya Sabha on March 10, 2016, and the Lok Sabha on March 15, 2016

Came into effect on May 1, 2016

Initially, 59 out of 92 sections were notified in 2016; the rest came into force in March 2017

Applicable across India, except for the former state of Jammu and Kashmir

Key Benefits of RERA

1. Transparent pricing: Developers must disclose the carpet area and price homes based on it, ensuring clear cost calculations.

2. Escrow safeguards: 70% of buyer payments must go into an escrow account, which reduces financial risk and helps prevent delays.

3. Protection against defects: Developers are liable to fix any structural defects reported within five years of possession, at no cost, within 30 days.

4. Fair interest penalties: Both builders and buyers are subject to the same interest rates in case of delays or defaults.

5. Compensation for title defects: Buyers can claim compensation for title defects, with no cap on the compensation amount.

Filing Complaints — UP RERA

In Uttar Pradesh, buyers, developers, and agents can file complaints with UP RERA if they face any issues. If dissatisfied with the authority’s decision, they can escalate the matter to the RERA Appellate Tribunal.

Penalties and Enforcement

Up to 5% of project cost for non-compliance with RERA orders

Up to 10% of project cost for failure to register a project

Up to 10% of project cost or one year in prison for non-compliance with appellate tribunal orders

For example, UP RERA has already imposed penalties totalling ?2.5 crore on developers who failed to comply with its rulings.