The registration process for real estate projects
under the Real Estate (Regulation and
Development) Act (RERA) 2016 involves several
crucial steps.
Promoter Registration:
Before commencing any real estate project, promoters
must register with the state’s Real Estate Regulatory
Authority (RERA) under Section 4 of the RERA Act. The
word ‘developer’ is not used any where in the Act. The
term used is ‘promoter’.
Section 2 (zk) defines the word promoter as any person
who constructs or causes to be constructed an
independent building or a block of apartments r
converts a part of a building into apartments for the
purposes of selling the same to others. He can also be a
person who develops a plot of land into sites for sale.
The word person can be a natural person, a company, a
HUF, an LLP, a competent authority liker KHB, an
Association of persons, a co-operative society or such
other entity as may be notified by the Government –
State or Central.
Project Registration:
Every promoter shall make an application to the RERA
for registration of the real estate project in the
prescribed format with the prescribed fees.
The application for project registration must include:
The details of himself or his enterprise
Projects done by him in the last five years whether
completed or not
The approvals from all competent authorities for the
project now sought to be registered
Sanctioned plan, layout plan, specifications
Location details
Formats of allotment letter, agreement to sell, sale
deed which is proposed to be executed by the promoter
The number, type and carpet area of the apartments
along with area of exclusive balcony and verandah
The number and area of garages in the project
Names and addresses of his agents
Names and addresses of his architects, contractors,
structural engineers.
The application should be accompanied by an affidavit
signed by the promoter or his authorized signatory
stating that the promoter has :
Legal title along with documents authenticating such
title.
That the land is free from encumbrances
The time to be taken for completion of the projector
phase
That 70% of the money received from prospective
purchasers will be deposited in a separate account to
be maintained in a scheduled bank ( means a bank
referred to in the Second Schedule to the RBI
Act1934),to cover cost of construction and that the
money will be used for such purpose.
The promoter can withdraw from this amount
depending on the progress of the project which will be
certified by an engineer architect and chartered
accountant
That he will get his account audited every 6 months and
shall submit that audited accounts to RERA.
That he will get all other approvals from time to time on
time
That he has furnished all documents as prescribed by
the Act and Rules.
Section 5 provides that on receipt of the application
prescribed under Section 4 the RERA shall within 30
days grant registration and provide a registration
number including a Login ID and password for the
applicant to access the website and create his web
page. The RERA also has the power to reject an
application, after hearing the applicant and for reasons
to be recorded in writing.
If RERA does not reject an application in 30 days and
passes no order, the project is deemed registered and
within 7 days after the expiry of the 30 day period the
Login ID Password shall be given to the Applicant.
The registration will be valid for the period declared by
the promoter as the period for completion for the
project.
Section 6 provides that on application accompanied by
the prescribed fee there can be an extension of the
period of registration for force majeure and where there
is need to extent for no fault of the promoter it can be
for a maximum of one year. Such an application cannot
be rejected without hearing the applicant.
Revocation of registration
Section 7 provides for revocation of registration on
receipt of a complaint or suo motu or on the
recommendation for the competent authority. The term
‘competent authority’ has been defined by S 2 (p) as
the local authority or other authority established by law
which exercises jurisdiction over the land and has
powers to give permission for its development.
The RERA can revoke the registration if it is satisfied
that:
(i) Promoter has committed default
(ii) Has violated term and conditions of approval
given by the competent authority
(iii) The promoter is involved in unfair practices.
An unfair practice will also include a deceptive
practice and incudes making false or misleading
statements or indulges in fraudulent practises.
To revoke RERA will have to give 30 days notice to the
promoter. The promoter can show cause and this will be
considered and thereafter a decision will be taken.
Consequences of revocation of registration
1. The Promoter will be debarred from accessing the
website and his name will be displayed in the list of
defaulters and other RERAs in other States will be
informed.
2. The project will be proceeded with in accordance
with Section 8.
3. The bank holding the account will be asked to freeze
the account and thereafter on process under Section
8 the Bank will be asked to defreeze the account.
4. Issue such directions as may be in the interest of the
allottees or public at large.
Completion of project thereafter
RERA may consult the State Government to take such
action to complete the remaining works by the
competent authority or Association of allottees or in any
other manner as may be determined by the RERA.
Such action shall not be taken till the period for appeal
is over and the order is not stayed.
The Association of Allottees shall have right of first
refusal to carry out remaining development works.