What is RERA? Complete Guide to Real Estate Regulation

Before RERA, Indian real estate operated with minimal regulation. Developers could delay projects indefinitely, divert funds to other ventures, make misleading claims in advertisements, and change project specifications without buyer consent. RERA fundamentally changed this by creating a regulatory authority in each state with the power to register projects, adjudicate complaints, and penalise non-compliance.

Key Protections Under RERA

1. Mandatory Project Registration

Every residential project above a certain size must be registered with the state RERA authority before marketing or selling. The registration includes project plans, approvals, timeline, and developer details. No developer can advertise or sell an unregistered project.

2. 70% Escrow Requirement

Developers must deposit 70% of the money received from buyers into a dedicated escrow account. This money can only be withdrawn in proportion to the construction completed, as certified by an engineer and a chartered accountant. This prevents the diversion of buyer funds to other projects.

3. Carpet Area-Based Selling

RERA mandates that apartments be sold on the basis of carpet area, not super area or built-up area. This ensures buyers know exactly how much usable space they are paying for.

4. Delivery Timelines

Developers must declare a possession date at the time of registration and are liable to pay interest to buyers for any delay beyond this date. This creates a financial incentive for timely delivery.

5. No Plan Changes Without Consent

Structural layout or specifications cannot be changed without the written consent of two-thirds of the allottees. This protects buyers from unilateral project modifications.

UP RERA and Greater Noida West

For projects in Greater Noida West (Uttar Pradesh), the regulator is UP RERA. Buyers can verify any project's registration status, check approved plans, and file complaints through the UP RERA portal. Fab Luxe Residences has its RERA registration in process with UP RERA — buyers should verify the registration number upon approval.

How to Verify RERA Registration

1. Visit the state RERA website (for UP: up-rera.in)
2. Search by project name or RERA registration number
3. Verify the developer name, project location, and approved plans
4. Check the declared possession date and current construction status
5. Review any complaints filed against the project

Related Terms