IMPLEMENTATION OF RERA ACT, 2016

Ministry of Housing & Urban Affairs IMPLEMENTATION OF RERA ACT, 2016 प्रव तथ: 30 JUL 2026 6:41PM by PIB Delhi As per Entry 18 of List- II (State List) of 7th Schedule of Constitution of India, ‘Land’ and ‘Colonization’ are State subjects. However, by deriving powers from Entries 6, 7 & 46 of List-III (Concurrent List) of the Seventh Schedule of the Constitution of India, the Real Estate (Regulation and Development) Act, 2016 [RERA] was enacted by the Parliament to regulate the contractual relationship between homebuyers and promoters.

RERA aims to ensure transparency & accountability in the Real Estate Sector, thereby protecting the interests of the homebuyers.

RERA mandates the registration of real estate projects with the Regulatory Authority before any advertisement, marketing, booking, or sale and in case of contravention of this provision, the promoter is liable to a penalty of up to 10% of the estimated cost of the real estate project, as determined by the Regulatory Authority. Moreover, a Committee was constituted by this Ministry to address challenges during registration of projects across States / Union Territories (UTs) and recommend steps to ensure registration of eligible projects towards effective implementation of RERA. The report of the Committee has been shared with all the Real Estate Regulatory Authorities for further necessary action.

RERA also mandates the promoters to disclose all necessary project details & approvals and deposit 70% of the amounts realized from homebuyers in a separate bank account, which shall be utilized only for land cost and project construction.

RERA also provides for a fast-track dispute resolution mechanism by making the provision of disposal of matter within 60 days. Section 40 of RERA provides for recovery of unpaid interest, penalty or compensation from the promoter as arrears of land revenue and empowers the Adjudicating Officer, Regulatory Authority or Appellate Tribunal to issue necessary orders or directions.

Further, as per Section 41 of RERA, Central Advisory Council (CAC) has been constituted under the Chairmanship of Hon’ble Minister of Housing and Urban Affairs to advise and recommend the Central Government on all matters concerning the implementation of the Act, including safeguarding the interests of the homebuyers.

Moreover, the Ministry regularly communicates with State Governments on various RERA-related issues, including enhancing the functional and administrative autonomy of Regulatory Authorities and ensuring adequate staff deployment as per operational requirements.

In last one year, the Ministry has held regular consultations with stakeholders including representatives of Homebuyers’ Associations & Real Estate Developers, State Real Estate Regulatory Authorities, among others, for effective implementation of RERA, development of Standard Operating Procedures (SOPs) and amendments needed in the Act.This information was given by the Minister of State for Housing & Urban Affairs, Shri Tokhan Sahu in a written reply in the Lok Sabha today.

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