RERA NOTES

Section 2(d): “Allottee”

An allottee is:
1. A person to whom a plot, apartment, or building (as applicable) has been:
 Allotted,
 Sold (whether freehold or leasehold), or
 Transferred in any other way by the promoter.
2. It also includes a person who later acquires the same plot/apartment/building via:
 Sale,
 Transfer, or
 Any other method.
3. But it does NOT include someone who gets the plot/apartment/building on rent.

Section 2(e): “Apartment”

An apartment means:
1. Any separate and self-contained part of immovable property.
2. It could be called by various names like:
 Block, chamber, dwelling unit, flat, office, showroom, shop, godown,
premises, suite, tenement, unit, or any other similar name.
3. It includes:
 One or more rooms or enclosed spaces.
 Located on one or more floors or part of a floor.
 In a building or on a plot of land.
4. Intended for residential or commercial use, such as:
 Residence, office, shop, showroom, or godown.
 For carrying on a business, occupation, profession, or trade.
 Or any other use that supports the above purposes (ancillary use).
Section 2(j): “Building”
A building includes:
1. Any structure or erection, or
2. Any part of a structure or erection,
3. That is meant to be used for:
 Residential purposes,
 Commercial purposes,
 Business, occupation, profession, or trade, or
 Any other related purpose.

Section 2(k): “Carpet Area”

Carpet area means:
1. The net usable floor area of an apartment.
2. Excludes:
 Area covered by external walls,
 Service shafts,
 Exclusive balcony or verandah area,
 Exclusive open terrace area.
3. Includes:
 The area covered by internal partition walls within the apartment.

Section 2(n): “Common Areas”

Common areas include the following eight components:
(i) The entire land of the real estate project,
→ Or if the project is in phases, the entire land of that phase.
(ii) The staircases, lifts, staircase and lift lobbies, fire escapes, and common entrances
and exits of buildings.
(iii) The common:
 Basements,
 Terraces,
  Parks,
 Play areas,
 Open parking areas, and
 Common storage spaces.
(iv) Spaces used for lodging staff who manage the property:
 Watch and ward staff,
 Community service personnel, etc.
(v) Installations for central services like:
 Electricity, gas, water, sanitation,
 Air-conditioning, incineration,
 Water conservation systems,
 Renewable energy systems.
(vi) All mechanical systems and equipment for shared use like:
 Water tanks, sumps, motors, fans, compressors, ducts, etc.
(vii) All community and commercial facilities that are provided in the real estate project.
(viii) Any other part of the project that is:
 Necessary or convenient for the project’s maintenance, safety, etc.
 And is in common use.

Section 3 – Prior Registration of Real Estate Projects

1. Mandatory Registration:
 A promoter cannot advertise, market, book, sell, or offer for sale any plot,
apartment, or building without registering the project with the Real Estate
Regulatory Authority (RERA).
2. Applicability:
 Applies to any real estate project or part of it in any planning area.
3. Ongoing Projects:
 If the project is ongoing on the date of commencement of the Act and does
not have a completion certificate, the promoter must apply for
registration within 3 months of the Act’s commencement.
 4. Projects Outside Planning Areas:
 If a project is outside the planning area but has permission from the local
authority, RERA may order the promoter to register if it's in the interest of
allottees. Then, RERA rules will apply from the time of registration.
5. Exemptions from Registration (Registration not required if):
 Land area to be developed is ≤ 500 sq. meters, or
 Number of apartments ≤ 8, including all phases.
 Completion certificate was obtained before commencement of the Act.
 It’s for renovation/repair/re-development with no marketing/sale/new
allotments.
6. Clarification:
 Each phase of a phased project is treated as a separate project, and must be
registered individually.

Section 4 – Application for Registration of Real Estate Projects

1. Filing Application:
 Promoter must apply to RERA in the prescribed form, manner, time, and
with the prescribed fee.
2. Documents to be Attached:
a) Details of the promoter’s enterprise:
 Name, address, type (proprietorship/society/company/etc.), registration details,
and photos of promoter.
b) Past project record:
 Details of projects in last 5 years, current status, delays, pending cases, land
details, and pending payments.
c) Authenticated approvals:
 Approvals and commencement certificate from competent authority.
 If in phases, approvals for each phase.
d) Sanctioned plans:
 Layout and specifications of proposed project/phase.
e) Development plans:
  Facilities to be provided: fire safety, water, evacuation, renewable energy,
etc.
f) Location details:
 Land boundaries with latitude and longitude.
g) Proformas of:
 Allotment letter, agreement for sale, and conveyance deed.
h) Details of:
 Number, type, carpet area of apartments for sale, including exclusive
balconies and terraces.
i) Number and area of garages for sale.
j) Real estate agents’ names and addresses, if any.
k) Contractors, architect, structural engineer, and others involved.
l) Declaration with affidavit by promoter:
 (A) Legal title to land or authentication of title if owned by another.
 (B) Land is free from encumbrances or give complete details of them.
 (C) Time period for completion of project or phase.
 (D) 70% of money collected from allottees to be deposited in a separate
account in a scheduled bank, used only for land and construction costs:
 Withdrawal allowed proportionate to completion of project.
 Withdrawals certified by an engineer, architect, and CA.
 Promoter must get accounts audited yearly, within 6 months after
financial year ends.
 Auditor verifies usage of funds and proportional withdrawals.
 Scheduled bank = bank in Second Schedule of RBI Act, 1934.
 (E) Promoter will obtain all pending approvals on time.
 (F) Promoter has submitted all other required documents.
m) Any other information/documents as prescribed.
3. Online Application System:
 RERA to launch a web-based online application system within 1 year of its
establishment.
Section 5 – Grant of Registration
1. Decision within 30 days:
 RERA will either:
a) Grant registration, and issue a registration number, login ID, and
password, OR
b) Reject the application with reasons in writing.
 No rejection without giving the promoter an opportunity to be heard.
2. Deemed Registration:
 If RERA does not respond within 30 days, the project is deemed registered.
 Within 7 days after that, RERA must issue registration number, login ID,
and password.
3. Validity of Registration:
 Valid for the duration declared by the promoter in Section 4(2)(l)(C) (i.e.,
project completion period).

Section 6 – Extension of Registration

1. Extension:
 Can be extended due to force majeure (war, flood, drought, fire, cyclone,
earthquake, etc.) on application and prescribed fee.
2. Additional Grounds:
 In reasonable circumstances without promoter's default, RERA can
grant further extension (not exceeding 1 year total) with written reasons.
3. Right to Hearing:
 No rejection of extension application without giving the promoter
an opportunity to be heard.

Section 7 – Revocation of Registration

1. Grounds for Revocation:
 RERA can revoke registration (based on complaint, suo motu, or
recommendation) if:
a) Promoter defaults under Act/rules/regulations.
b) Violates terms or conditions of approval.
c) Engages in unfair practices or irregularities.
Unfair practices include:
 (i) False claims about services/standards.
 (ii) Falsely claiming approval or affiliation.
 (iii) Misleading representation of services.
 (iv) Publishing false advertisements or brochures.
d) Involvement in fraudulent practices.

Section 8 – Obligation of Authority on Lapse or Revocation of Registration

1. Triggering event: This section applies when a real estate project's registration
lapses (ends) or is revoked (cancelled).
2. Authority’s role: In such cases, the Real Estate Regulatory Authority
(RERA) may:
 Consult the appropriate Government.
 Decide on what actions should be taken next.
3. Possible actions include:
 Completion of the remaining development works by:
 A competent authority,
 The association of allottees,
 Any other method as decided by RERA.
4. First Proviso:
 No decision or order by RERA under this section will take effect until
the appeal period expires (as per the Act).
5. Second Proviso:
 If registration is revoked, the association of allottees gets first right of
refusal to complete the remaining development works.

Section 9 – Registration of Real Estate Agents

(1) Mandatory Registration
1. A real estate agent cannot facilitate any sale/purchase of any:
  Plot, apartment, or building,
 In a real estate project registered under Section 3,
 In any planning area,
 Unless they are registered under Section 9.
(2) Application Requirements
2. Every real estate agent must apply for registration:
 In the prescribed form,
 In the prescribed manner,
 Within the prescribed time,
 Along with the prescribed fee and documents.
(3) Registration Process
3. RERA must:
 Grant a single registration for the whole State or Union Territory, or
 Reject the application, with written reasons, if it doesn't comply with the
Act or Rules/Regulations.
✅ BUT, no rejection without giving the agent a chance to be heard.

(4) Deemed Registration

4. If the agent:
 Doesn't get any communication about deficiencies or rejection within
the prescribed time,
 He is deemed to be registered.
(5) Registration Number
5. Every registered agent will get a registration number from RERA.
 This must be quoted in every sale facilitated by them.
(6) Validity and Renewal
6. Registration will:
 Be valid for a prescribed period,
 Be renewable:
 In the prescribed manner,
 On payment of prescribed fee.
(7) Revocation or Suspension
7. If an agent:
 Violates any condition of registration, or
 Violates rules/regulations, or
 Got registration through fraud or misrepresentation,
RERA can:
 Revoke or suspend the registration for any period it decides.
✅ BUT, agent must be given a chance to be heard before this action.

Section 10 – Functions of Real Estate Agents

Every registered real estate agent must:
(a) Don’t facilitate unregistered projects
1. Must not facilitate sale/purchase of any property in a project not registered with
RERA.
(b) Maintain records
2. Must maintain and preserve:
 Books of account, records, and documents,
 As prescribed.
(c) Avoid unfair trade practices
3. Must not engage in unfair trade practices, including:
(i) False statements:
 Saying services are of a certain standard/grade when they are not.
 Claiming false approvals/affiliations for self or promoter.
 Making misleading or false claims about services.
(ii) False advertisements:
 Publishing ads for services they don’t actually intend to offer.
(d) Provide documents/info to allottee
4. Must ensure allottees get:
 All relevant information and documents they are entitled to at the time of
booking.
(e) Other prescribed functions
5. Must perform other functions as may be prescribed by Rules/Regulations.

🔹 1. Creating Web Page and Project Details [Section 11(1)]

After getting Login ID & password from the Authority:

 Create a project webpage on the RERA website.
 Upload all project details as per Section 4(2), including:
 (a) Registration details from Authority.
 (b) Quarterly updates of the number and types of apartments/plots booked.
 (c) Quarterly updates on garages booked.
 (d) Quarterly updates on approvals obtained or pending after
commencement.
 (e) Quarterly status of the project progress.
 (f) Any other info/documents required by RERA regulations.

🔹 2. Advertisement Requirements [Section 11(2)]

Every advertisement or prospectus must clearly mention:

 RERA website address where project details are available.
 Registration number of the project.
 Any other necessary information.

🔹 3. Information at Time of Booking & Allotment [Section 11(3)]

Promoter must provide to the allottee:

 (a) Sanctioned plans, layout plans & specifications approved by authorities
(displayed at the site or any place as per RERA rules).
 (b) Stage-wise schedule of project completion, including water, electricity, sanitation,
etc.

🔹 4. Key Legal Responsibilities Until Handover [Section 11(4)]

Promoter is responsible for all functions until full handover:

  (a) All duties under RERA and agreement for sale until conveyance of:
 Apartments/plots/buildings to allottees.
 Common areas to association or competent authority.
 Structural defects liability remains even after conveyance for 5 years (as per
Section 14(3)).
 (b) Obtain and give:
 Completion Certificate / Occupancy Certificate to allottees or their
association.
 (c) If land is leasehold:
 Get Lease Certificate (showing dues are paid).
 Provide it to the association of allottees.
 (d) Maintain essential services until the association takes over (reasonable charges).
 (e) Help in forming:
 Association/society/co-operative society of allottees or federation.
 If local law is absent, form within 3 months of majority bookings.
 (f) Execute registered conveyance deed:
 For apartment/plot/building to allottee.
 For common areas to association/authority (as per Section 17).
 (g) Pay all outgoings (land cost, taxes, utility charges, mortgage loans, etc.) until:
 Physical possession is transferred to allottee or association.
 If not paid, promoter remains liable even after transfer,
plus penalties and legal cost.
 (h) No mortgage/charge allowed after executing sale agreement.
 If done, it won’t affect the allottee’s rights under any law.

🔹 5. Cancellation Rules [Section 11(5)]

 Allotment can only be cancelled as per agreement for sale.

 If the cancellation is unilateral, unfair, or without cause, allottee can file a
complaint with the RERA Authority.
🔹 6. Records & Details Maintenance [Section 11(6)]

 Promoter must maintain any other details as required by regulations from time to
time.

🔹 7. Veracity of Advertisements [Section 12]

 If someone invests based on false/incorrect claims in advertisement or model flat:

 Promoter must compensate for the loss/damage.
 If buyer withdraws: refund entire investment + interest + compensation.

🔹 8. No Advance Without Registered Agreement [Section 13]

 Cannot take more than 10% of apartment/plot/building cost as advance/application

fee without:
 Registered written agreement for sale.
 The agreement must include:
 Construction details.
 Payment schedule.
 Date of possession.
 Interest rate in case of default (by promoter or buyer).
 Other prescribed details.

🔹 9. Compliance with Approved Plans [Section 14]

(1) Project must match:

 Sanctioned layout plans.
 Specifications approved by authorities.
(2) No alterations allowed unless:
 (i) If for sold apartment/plot:
 Written consent of allottee is needed.
 Minor changes allowed (for architectural/structural reasons) only if certified
by an architect/engineer and informed to allottee.
Minor changes = small adjustments, NOT:
  Increasing floor area.
 Changing height.
 Removing walls/beams.
 Changing means of access or structure.
 (ii) If change involves common areas or building-wide plans:
 Needs written consent of 2/3rd allottees (excluding promoter).
 Multiple apartments/plots held by same person or firm count as one allottee.
(3) Defect liability for 5 years:
 If within 5 years of possession, any:
 Structural defect
 Workmanship/quality issue
 Service defect
 Any agreement violation
 Promoter must fix within 30 days at no cost.
 Failing which, allottee is entitled to compensation.

Section 15: Obligations of Promoter in Case of Transfer of Project to Third Party

1. No transfer of majority rights without consent:
 The promoter cannot transfer or assign their major rights and liabilities in
a real estate project to any third party without:
 Written consent from two-thirds of allottees (excluding the
promoter).
 Prior written approval from the Regulatory Authority.
2. Protection of existing allotments:
 Even after the transfer, allotments or sales already made by the original
promoter will remain valid and unaffected.
3. Clarification on who is counted as one allottee:
 A person will be considered as one allottee only, even if:
 They have booked multiple apartments/plots.
 Bookings are in their family's name or under:
  Companies, firms, associations, or related enterprises/entities.
4. Obligations after transfer:
 Once transfer is approved, the new (intending) promoter must:
 Fulfill all pending obligations under:
 This Act.
 Rules and regulations.
 Agreements made by the previous promoter.
5. No extension of time:
 The new promoter will not get extra time to complete the project.
 If they delay or breach obligations, they will face penalties and
consequences under the law.

Section 16: Obligations of Promoter Regarding Insurance

1. Mandatory insurance:
 Promoter must take insurance as notified by the government, including:
 Title insurance (ownership of land/building).
 Construction insurance.
2. Promoter pays premiums:
 Promoter is responsible for paying all insurance charges.
 Payment must be made before handing over the insurance to the association
of allottees.
3. Transfer of insurance benefits:
 Once the promoter signs an agreement for sale, the insurance benefits
transfer to:
 The allottee, or
 The association of allottees.
4. Handover of insurance documents:
 When the association of allottees is formed, the promoter must give them all
insurance-related documents.
Section 17: Transfer of Title
1. Execution of conveyance deed and possession:
 Promoter must:
 Execute a registered conveyance deed in favour of the allottee.
 Transfer undivided proportionate title in common areas to
the association of allottees or competent authority.
 Hand over physical possession of:
 Plot/apartment/building to the allottee.
 Common areas to the association or authority.
2. Timelines for execution:
 Must follow the timeline in local laws.
 If no local law exists, promoter must do it within 3 months from the date of
issue of occupancy certificate.
3. Handover of documents after possession:
 After handing over possession and getting occupancy certificate, the promoter
must give all necessary documents and plans, including for common areas,
to the association/authority.
4. Timeline for handover of documents:
 If no local law exists, this must be done within 30 days after receiving
the completion certificate.

Section 18: Return of Amount and Compensation

1. If promoter fails to deliver possession:
 Applies if the promoter:
 Fails to complete or hand over possession as per agreement.
 Or is unable to do so due to suspension/revocation of registration
or discontinuation of business.
 Then the promoter must:
 On demand, return the full amount paid by the allottee with
interest (rate as prescribed).
 Also pay compensation as per the Act.
  Important: This applies if the allottee chooses to withdraw from the project.
2. If allottee stays in the project:
 They must be paid monthly interest for the delay until possession is handed
over (at prescribed rate).
3. Compensation for defective land title:
 If the land title is defective, promoter must compensate the allottees.
 No time limitation applies to file such a claim (not barred by any limitation
law).
4. Failure to meet other obligations:
 If the promoter fails to fulfill any other obligation under:
 The Act,
 Rules or regulations, or
 The agreement for sale,
 Then the promoter must compensate the allottee as per the Act.

SECTION 19-
✅ RIGHTS of Allottees:

1. Right to Information:
 Allottee has the right to get details about:
 Sanctioned plans
 Layout plans
 Specifications (approved by the authority)
 Any other info under the Act, Rules, Regulations, or Sale Agreement
2. Right to Project Timeline:
 Allottee can ask for stage-wise project completion schedule
 This includes:
 Water supply
 Sanitation
 Electricity
 Other agreed amenities/services (as per the sale agreement)
 3. Right to Possession:
 Allottee can claim possession of:
 Apartment, plot, or building
 Association of allottees can claim possession of:
 Common areas
 As per the declaration by promoter under Section 4(2)(l)(C)
4. Right to Refund:
 If promoter fails to:
 Give possession on time as per the agreement
 Or business is suspended/revoked under the Act
 Then allottee can claim:
 Refund
 Interest (as prescribed)
 Compensation (as per the Act)
5. Right to Documents:
 After physical possession is given by the promoter:
 Allottee is entitled to get necessary documents and plans
 This includes documents related to common areas

⚖️DUTIES of Allottees:

6. Payment Obligations:
 Allottee must pay:
 As per the manner and timeline in the Agreement for Sale (under
Section 13)
 Charges to be paid include:
 Registration charges
 Municipal taxes
 Water and electricity charges
 Maintenance
  Ground rent
 Any other charges (if applicable)
7. Interest on Late Payment:
 If allottee delays payment:
 They must pay interest (at prescribed rate) on delayed amount
8. Mutual Reduction of Obligations:
 Allottee’s obligations in Point 6 and interest in Point 7:
 Can be reduced if promoter and allottee mutually agree
9. Participation in Association:
 Allottee must:
 Participate in forming:
 An association / society / cooperative society
 Or a federation of such bodies
10. Taking Possession:
 Allottee must take physical possession of property within:
 2 months of occupancy certificate being issued
11. Registration of Conveyance Deed:
 Allottee must:
 Participate in registration of conveyance deed
 As per Section 17(1) of the Act
Chapter V: The Real Estate Regulatory Authority (RERA)

20. Establishment and Incorporation of Authority

 Who establishes? Appropriate Government (State/UT).
 Timeline: Within 1 year from Act's commencement.
 Flexibility:
 Can establish a single Authority for multiple States/UTs.
 Can establish more than one Authority in a State/UT.
  Interim arrangement: Until RERA is set up, Government can designate an existing
Authority/officer (preferably Secretary of Housing Dept.).
 Corporate body: RERA has perpetual succession, common seal, can sue and be sued,
hold property, and contract.

21. Composition of Authority

 Consists of:
 Chairperson (1)
 Whole-time Members (minimum 2)
 Appointed by Appropriate Government.

22. Qualifications of Chairperson & Members

 Appointed by Appropriate Government on Selection Committee recommendations:
 Chief Justice of High Court (or nominee)
 Secretary of Housing Department
 Law Secretary
 Experience requirements:
 Chairperson: ≥20 years in relevant fields (urban dev., real estate, law,
management, public affairs, etc.).
 Members: ≥15 years in same fields.
 Restrictions:
 Govt. servants only if they held high posts (Additional Secretary for
Chairperson; Secretary for Members).

23. Term of Office

 Maximum 5 years or until age 65, whichever earlier.
 No re-appointment.
 Must be free from conflicts of interest.

24. Salary, Allowances & Service Conditions

  As prescribed, cannot be reduced during tenure.
 Can resign with 3 months’ notice.
 Removal only as per procedure (section 26).
 Vacancies must be filled within 3 months.

25. Administrative Powers of Chairperson

 General superintendence and directions.
 Presides over meetings.
 Exercises administrative powers as prescribed.

26. Removal from Office

Grounds for removal include:
 Insolvency.
 Conviction involving moral turpitude.
 Physical/mental incapacity.
 Conflict of interest affecting functions.
 Abuse of position prejudicial to public interest.
Removal on conflict/abuse grounds only after inquiry by a High Court Judge with right to be
heard.

27. Post-Office Restrictions

 Cannot accept employment connected with matters under RERA from date of
cessation.
 Exceptions: Govt., local authority, statutory authorities, government companies (non-
promoters).
 Cannot act for any party involved in proceedings handled while in office.
 Must keep all Authority information confidential.
 No contracts or direct dealings with entities they dealt with officially.

28. Officers and Employees

  Appointed by Appropriate Government in consultation with Authority.
 Work under Chairperson’s superintendence.
 Terms and salaries as prescribed.

29. Meetings of Authority

 Regulated by Authority’s rules.
 Chairperson presides; in absence, Members elect presiding member.
 Decisions by majority; Chairperson/presiding member has casting vote.
 Disposals of applications within 60 days; reasons required if delayed.

30. Validity of Proceedings

 Authority’s actions not invalid due to:
 Vacancies
 Defects in constitution or appointments
 Procedural irregularities not affecting merits.

31. Filing of Complaints

 Any aggrieved person (including allottee associations, consumer bodies) can file
complaints against promoters, agents, or allottees.
 Form, manner, fees prescribed.

32. Functions for Sector Promotion

 Protect interests of allottees, promoters, agents.
 Recommend single-window clearances for timely projects.
 Suggest grievance redressal mechanisms.
 Encourage investment and financial assistance for affordable housing.
 Promote environment-friendly, standardized construction.
 Recommend grading systems for projects and promoters.
 Facilitate dispute conciliation forums.
  Support digitization of land records and conclusive property titles.
 Advise Government on real estate sector development.
 Any other measures for sector promotion.

33. Advocacy and Awareness

 Government can seek Authority’s opinion on real estate policy/laws.
 Authority must respond within 60 days.
 Opinions not binding.
 Authority promotes awareness and training on real estate laws and policies.

34. Core Functions

 Register and regulate projects and agents.
 Maintain and publish public website records of registered projects and agents.
 Maintain defaulter databases with names and photos.
 Fix standard fees for services in the jurisdiction.
 Ensure compliance with Act, rules, and Authority’s orders.
 Perform any additional functions assigned by Government.

35. Powers to Call Information & Investigate

 Can call for info/explanations from promoters, allottees, agents.
 Can appoint persons to inquire into affairs.
 Has civil court powers for summons, documents, evidence collection.
Section 35 – Power to Get Information and Investigate
1. If needed (either on complaint or on its own), the Authority can:
 Ask any promoter, buyer, or agent to give written information.
 Appoint people to inquire into their business matters.
2. While doing so, the Authority has powers like a civil court, including:
 Asking for documents or account books.
 Summoning people and questioning them under oath.
  Sending commissions to examine documents or witnesses.
 Any other powers allowed by law.

Section 36 – Power to Issue Interim Orders

 If during inquiry the Authority finds someone (promoter, allottee, or agent) is doing or
about to do something illegal under this Act, it can stop them immediately through
an interim order—even without giving them a prior notice, if necessary.

Section 37 – Power to Issue Directions

 The Authority can give directions to promoters, buyers, or agents to ensure the Act is
followed.
 These directions are binding on everyone.

Section 38 – General Powers of the Authority

1. The Authority can impose penalties or interest if promoters, buyers, or agents break
the rules.
2. It must follow natural justice and can create its own procedures.
3. If there is an issue where:
 There’s unfair restriction or impact on competition in real estate development;
or
 Monopoly power is being misused to hurt buyers—
Then, the Authority can refer the matter to the Competition Commission of India.

Section 39 – Correction of Orders (Rectification)

1. The Authority can correct a mistake in its order within 2 years from the date of that
order.
2. If a party tells the Authority about the mistake, it must correct it.
3. But:
 No correction can be made if an appeal has already been filed.
 The Authority cannot change the main part (substance) of its order while
correcting it.
 Section 40 – Recovery of Interest, Penalty, or Compensation
1. If a promoter, buyer, or agent fails to pay interest, penalty, or compensation ordered
under this Act:
 The amount will be recovered like arrears of land revenue.
 It will be enforced by the adjudicating officer, Regulatory Authority, or
Appellate Authority.

Chapter VI — Central Advisory Council

41. Establishment of Central Advisory Council
 Who sets it up? Central Government, by notification.
 Chairperson: Minister in charge of Housing (ex officio).
 Composition:
 Representatives from key Ministries:
 Finance, Industry & Commerce, Urban Development, Consumer
Affairs, Corporate Affairs, Law & Justice
 Niti Aayog, National Housing Bank, Housing and Urban Development
Corporation
 5 State Govt. reps (rotational)
 5 Real Estate Regulatory Authorities reps (rotational)
 Up to 10 members representing:
 Real estate industry, consumers, agents, construction laborers, NGOs,
academic/research bodies
 Other Central Government departments as notified.
42. Functions of Central Advisory Council
 Advisory role to Central Government on:
 Implementation of RERA.
 Major policy issues.
 Consumer protection.
 Growth and development of real estate sector.
  Any other assigned matter.
 Central Govt. can specify rules to implement Council recommendations.

Chapter VII — Real Estate Appellate Tribunal

43. Establishment of Real Estate Appellate Tribunal
 Mandatory timeline: Within 1 year from RERA commencement, appropriate Govt.
must notify the Tribunal.
 Name: (State/UT) Real Estate Appellate Tribunal.
 Benches: Can have multiple benches based on jurisdiction.
 Composition of bench: Minimum one Judicial Member + one
Administrative/Technical Member.
 Joint Tribunal: Possible for multiple States/UTs.
 Interim arrangement: Designate existing tribunal until RERA tribunal is established.
 Appeals: Aggrieved parties can appeal decisions/orders by Authority or Adjudicating
Officer.
 Promoter appeals: Only after depositing ≥30% penalty or total amount
payable to allottee, whichever is higher.
 "Person" includes association of allottees or voluntary consumer associations.
44. Application for Settlement of Disputes and Appeals
 Who can appeal? Appropriate Govt., Competent Authority, or any aggrieved person.
 Time limit: 60 days from receipt of order/direction; Tribunal can condone delay for
sufficient cause.
 Procedure: Tribunal hears parties, may pass interim orders.
 Communication: Copies of orders sent to parties and Authority/Adjudicating Officer.
 Disposal timeline: Target within 60 days; reasons recorded if delayed.
 Power to call records and pass orders for legality/propriety.
45. Composition of Appellate Tribunal
 Chairperson + ≥2 whole-time Members.
 At least one Judicial Member.
 At least one Technical or Administrative Member.
46. Qualifications for Chairperson and Members
  Chairperson: Current/former High Court Judge.
 Judicial Member: 15 years judicial service OR ex-Indian Legal Service Additional
Secretary OR 20 years advocacy in real estate.
 Technical/Administrative Member: 20 years experience in urban development,
housing, real estate, infrastructure, economics, planning, law, commerce, accountancy,
management, public affairs, or equivalent govt. post.
 Appointment:
 Chairperson appointed by Govt. in consultation with Chief Justice of High
Court.
 Members appointed by Govt. on recommendations from a selection committee
(Chief Justice nominee + Housing Secretary + Law Secretary).
47. Term of Office
 Max 5 years, no reappointment.
 Age limits: Chairperson ≤ 67 years; Members ≤ 65 years.
 Govt. must ensure no conflicting financial/other interests before appointment.
48. Salary and Allowances
 Prescribed terms, no adverse variation during tenure.
 Resignation with 3 months’ notice.
 Removal per Section 49.
 Vacancies filled within 3 months.
49. Removal Grounds
 Insolvency.
 Conviction involving moral turpitude.
 Physical or mental incapacity.
 Conflicting financial/other interests.
 Abuse of position causing public prejudice.
 Removal only after inquiry by High Court Judge, hearing given.
 Govt. can suspend pending inquiry.
50. Post-Term Restrictions
 No employment with entities connected to matters dealt under RERA.
 No representation or advice related to cases dealt with.
  Confidentiality obligations.
 No board/directorship/contract with entities involved in their term.
51. Officers and Employees
 Govt. to provide necessary officers/employees.
 Serve under Chairperson’s superintendence.
 Terms and conditions prescribed.
52. Vacancies
 Filled promptly; proceedings continue post-filling.
53. Powers of Tribunal
 Not bound by Code of Civil Procedure or Indian Evidence Act.
 Guided by natural justice.
 Power to regulate own procedure.
 Same powers as civil courts (CPC) for:
 Summoning witnesses
 Requiring document production
 Enforcement of attendance
 Discovery and inspection
 Receiving evidence on affidavit
 Requisitioning public records
 Issuing commissions for examination of witnesses.

Chapter VI & Chapter VII

Chapter VI — Central Advisory Council

41. Establishment of Central Advisory Council
 Who sets it up? Central Government, by notification.
 Chairperson: Minister in charge of Housing (ex officio).
 Composition:
  Representatives from key Ministries:
 Finance, Industry & Commerce, Urban Development, Consumer
Affairs, Corporate Affairs, Law & Justice
 Niti Aayog, National Housing Bank, Housing and Urban Development
Corporation
 5 State Govt. reps (rotational)
 5 Real Estate Regulatory Authorities reps (rotational)
 Up to 10 members representing:
 Real estate industry, consumers, agents, construction laborers, NGOs,
academic/research bodies
 Other Central Government departments as notified.
42. Functions of Central Advisory Council
 Advisory role to Central Government on:
 Implementation of RERA.
 Major policy issues.
 Consumer protection.
 Growth and development of real estate sector.
 Any other assigned matter.
 Central Govt. can specify rules to implement Council recommendations.

Chapter VII — Real Estate Appellate Tribunal

43. Establishment of Real Estate Appellate Tribunal
 Mandatory timeline: Within 1 year from RERA commencement, appropriate Govt.
must notify the Tribunal.
 Name: (State/UT) Real Estate Appellate Tribunal.
 Benches: Can have multiple benches based on jurisdiction.
 Composition of bench: Minimum one Judicial Member + one
Administrative/Technical Member.
 Joint Tribunal: Possible for multiple States/UTs.
 Interim arrangement: Designate existing tribunal until RERA tribunal is established.
  Appeals: Aggrieved parties can appeal decisions/orders by Authority or Adjudicating
Officer.
 Promoter appeals: Only after depositing ≥30% penalty or total amount
payable to allottee, whichever is higher.
 "Person" includes association of allottees or voluntary consumer associations.
44. Application for Settlement of Disputes and Appeals
 Who can appeal? Appropriate Govt., Competent Authority, or any aggrieved person.
 Time limit: 60 days from receipt of order/direction; Tribunal can condone delay for
sufficient cause.
 Procedure: Tribunal hears parties, may pass interim orders.
 Communication: Copies of orders sent to parties and Authority/Adjudicating Officer.
 Disposal timeline: Target within 60 days; reasons recorded if delayed.
 Power to call records and pass orders for legality/propriety.
45. Composition of Appellate Tribunal
 Chairperson + ≥2 whole-time Members.
 At least one Judicial Member.
 At least one Technical or Administrative Member.
46. Qualifications for Chairperson and Members
 Chairperson: Current/former High Court Judge.
 Judicial Member: 15 years judicial service OR ex-Indian Legal Service Additional
Secretary OR 20 years advocacy in real estate.
 Technical/Administrative Member: 20 years experience in urban development,
housing, real estate, infrastructure, economics, planning, law, commerce, accountancy,
management, public affairs, or equivalent govt. post.
 Appointment:
 Chairperson appointed by Govt. in consultation with Chief Justice of High
Court.
 Members appointed by Govt. on recommendations from a selection committee
(Chief Justice nominee + Housing Secretary + Law Secretary).
47. Term of Office
 Max 5 years, no reappointment.
 Age limits: Chairperson ≤ 67 years; Members ≤ 65 years.
  Govt. must ensure no conflicting financial/other interests before appointment.
48. Salary and Allowances
 Prescribed terms, no adverse variation during tenure.
 Resignation with 3 months’ notice.
 Removal per Section 49.
 Vacancies filled within 3 months.
49. Removal Grounds
 Insolvency.
 Conviction involving moral turpitude.
 Physical or mental incapacity.
 Conflicting financial/other interests.
 Abuse of position causing public prejudice.
 Removal only after inquiry by High Court Judge, hearing given.
 Govt. can suspend pending inquiry.
50. Post-Term Restrictions
 No employment with entities connected to matters dealt under RERA.
 No representation or advice related to cases dealt with.
 Confidentiality obligations.
 No board/directorship/contract with entities involved in their term.
51. Officers and Employees
 Govt. to provide necessary officers/employees.
 Serve under Chairperson’s superintendence.
 Terms and conditions prescribed.
52. Vacancies
 Filled promptly; proceedings continue post-filling.
53. Powers of Tribunal
 Not bound by Code of Civil Procedure or Indian Evidence Act.
 Guided by natural justice.
 Power to regulate own procedure.
  Same powers as civil courts (CPC) for:
 Summoning witnesses
 Requiring document production
 Enforcement of attendance
 Discovery and inspection
 Receiving evidence on affidavit
 Requisitioning public records
 Issuing commissions for examination of witnesses.

Chapter VIII — Offences, Penalties & Adjudication

(Real Estate Regulation Act)

Section 59: Non-registration under Section 3

 Penalty: Up to 10% of estimated project cost.
 If non-compliance continues or violates Authority orders:
 Imprisonment: Up to 3 years, OR
 Fine: Additional 10% of project cost, OR
 Both imprisonment and fine.

Section 60: False Information or Contravention of Section 4

 Penalty: Up to 5% of estimated project cost.

Section 61: Other Contraventions (except Sections 3 & 4)

 Penalty: Up to 5% of estimated project cost.

Section 62: Real Estate Agent – Non-compliance of Sections 9 & 10

 Penalty: ₹10,000/day till default continues.
 Maximum cumulative penalty: Up to 5% of cost of the plot/apartment/building.
Section 63: Promoter – Non-compliance with Authority orders
 Penalty: Daily penalty up to cumulative 5% of estimated project cost.

Section 64: Promoter – Non-compliance with Appellate Tribunal orders

 Imprisonment: Up to 3 years, OR
 Fine: Daily penalty up to cumulative 10% of estimated project cost, OR
 Both.

Section 65: Real Estate Agent – Non-compliance with Authority orders

 Daily penalty up to cumulative 5% of cost of plot/apartment/building.

Section 66: Real Estate Agent – Non-compliance with Appellate Tribunal orders
 Imprisonment: Up to 1 year, OR
 Fine: Daily penalty up to cumulative 10% of cost of plot/apartment/building, OR
 Both.

Section 67: Allottee – Non-compliance with Authority orders

 Penalty up to cumulative 5% of plot/apartment/building cost.

Section 68: Allottee – Non-compliance with Appellate Tribunal orders

 Imprisonment: Up to 1 year, OR
 Fine: Daily penalty up to cumulative 10% of plot/apartment/building cost, OR
 Both.

Section 69: Offences by Companies

 Company & persons in charge (director, manager, secretary, officer) liable.
 Defense: Prove offence was committed without knowledge or due diligence was
exercised.
 "Company" = body corporate, firm, association; "Director" = partner (in firm).
Section 70: Compounding of Offences
 Imprisonment may be compounded by court on prescribed terms & payment (max
fine amount).
 Applies before or after prosecution begins.

Section 71: Power to Adjudicate

 Authority appoints one or more Judicial Officers (current or former District Judges)
as Adjudicating Officers for compensation inquiries (Sections 12,14,18,19).
 Pending Consumer Protection complaints can be withdrawn to file before
Adjudicating Officer with permission.
 Disposal timeline: Within 60 days (reasons required if delayed).
 Powers include summoning witnesses, documents, and awarding compensation or
interest.

Section 72: Factors for Adjudicating Officer in Compensation

 (a) Disproportionate gain or unfair advantage (quantifiable).
 (b) Loss caused due to default.
 (c) Repetitive nature of default.
 (d) Any other relevant factor for justice.