Real Estate (Regulation and Development) Act, 2016

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Real Estate (Regulation and Development) Act, 2016
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Parliament of India

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Enacted by

15 March 2016


10 March 2016

Assented to

25 March 2016


1 May 2016 (59 of 92 sections notified)
1 May 2017 (remaining)

Legislative history
Status: In force

The Real Estate (Regulation and Development) Act, 2016 is an Act of the Parliament of India which seeks to protect home-buyers as well as help boost investments in the real estate industry. The Act establishes a Real Estate Regulatory Authority (RERA) in each state for regulation of the real estate sector and also acts as an adjudicating body for speedy dispute resolution. The bill was passed by the Rajya Sabha on 10 March 2016 and by the Lok Sabha on 15 March 2016. The Act came into force on 1 May 2016 with 59 of 92 sections notified.[1] Remaining provisions came into force on 1 May 2017.[2] The Central and state governments are liable to notify the Rules under the Act within a statutory period of six months.[3]


Real Estate Regulatory Authority (RERA) Bill was introduced by the UPA 2 government in 2013.[4] In December 2015, the Union Cabinet of India had approved 20 major amendments to the bill based on the recommendations of a Rajya Sabha committee that examined the bill.[5] The Bill had been referred to a selection committee, which had given its report in July 2015.[6] However, Congress, Left and AIADMK had expressed their reservations on the report through dissent notes.[6] The bill got approval of the Rajya Sabha on 10 March 2016 and by the Lok Sabha on 15 March 2016.[7][8]



The Real Estate Act makes it mandatory for all commercial and residential real estate projects where the land is over 500 square metres, or eight apartments, to register with the Real Estate Regulatory (RERA) for launching a project, in order to provide greater transparency in project-marketing and execution. For ongoing projects which have not received completion certificate on the date of commencement of the Act, will have to seek registrations within 3 months. Application for registration must be either approved or rejected within a period of 30 days from the date of application by the RERA. On successful registration, the promoter of the project will be provided with a registration number, a login id, and password for the applicants to fill up essential details on the website of the RERA. For failure to register, a penalty of up to 10 percent of the project cost or three years' imprisonment may be imposed.[7] Real estate agents who facilitate selling or purchase of properties must take prior registration. Such agents will be issued a single registration number for each State or Union Territory, which must be quoted by the agent in every sale facilitated by him.

Protection of buyers

The Act prohibits unaccounted money from being pumped into the sector and as of now 70 per cent of the money has to be deposited in bank accounts through cheques is now compulsory.[9] A major benefit for consumers included in the Act is that builders will have to quote prices based on carpet area not super built-up area, while carpet area has been clearly defined in the Act to include usable spaces like kitchen and toilets.[7] Under Rera, its mandatory for the builders to disclose the carpet area.

Real Estate Regulatory Authority and Appellate Tribunal

It will help to establish state-level Real Estate Regulatory Authorities (RERAs) to regulate transactions related to both residential and commercial projects and ensure their timely completion and handover.[9] Appellate Tribunals will now be required to adjudicate cases in 60 days as against the earlier provision of 90 days and Regulatory Authorities to dispose of complaints in 60 days while no time-frame was indicated in earlier Bill...[9]

RERA Rules

The Act under S.84[10] contemplates that within 6 months of the RERA Act being enforced, State Governments shall make rules for carrying out the provisions of the Act. The said Rules are to be notified by some of the State Government. As late as 31 October 2016, Central Government, released the Real Estate (Regulation and Development) (General) Rules,[11] 2016, vide Notification by the Ministry of Housing & Urban Poverty Alleviation(HUPA).[12] The Rules so issued by the Central Government are applicable to the five Union Territories without Legislature viz., Andaman & Nicobar Islands, Dadra & Nagar Haveli, Daman & Diu, Lakshadweep, and Chandigarh. The Rules have been issued after the prior release of Draft for comments.[13]

As of 13 July 2019, Arunachal Pradesh, Meghalaya, Sikkim and Nagaland have not notified the Rules. In the case of five north-eastern states, the RERA Act is facing certain constitutional challenges as the land in those states are community owned. West Bengal notified a similar law called the West Bengal Housing Industry Regulatory Act, 2017, which came into effect from 1 June 2018.[14] However, as of July 2019, many of the states have not implemented the law in its true letter and spirit and failed to notify a Permanent Regulator, Appellate Authority or a website. A chart showing the implementation status by different states as of July 2019 can be seen here.

Implementing states

State/UT Date of notification Rules Website
Gujarat 29 October 2016 [2]
Uttar Pradesh 11 October 2016 [3]
Chandigarh 31 October 2016 [4]
Dadra and Nagar Haveli 31 October 2016 [5]
Andaman and Nicobar Islands 31 October 2016 [6]
Lakshadweep 31 October 2016 [7]
Daman and Diu 31 October 2016 [8]
Madhya Pradesh 22 October 2016 Rules
Delhi 24 November 2016 [9]
Maharashtra 19 April 2017 [10]
Andhra Pradesh 28 March 2017 [11]
Odisha 25 February 2017 [12]
Bihar 1 May 2017 [13]
Rajasthan 1 May 2017 [14]
Jharkhand 18 May 2017 [15]
Uttarakhand 28 April 2017 [16]
Tamil Nadu 22 June 2017 [17]
Karnataka 10 July 2017 [18]
Punjab 8 June 2017 [19]
Chhattisgarh 26 April 2017 [20]
Haryana 04 October 2018 [21]
Assam 6 May 2017 [22]
Telangana 4 August 2017 [23]
Himachal Pradesh 28 September 2017 [24]
Goa 24 November 2017 [25]
Tripura 27 October 2017 [26]
Puducherry 18 July 2017 [27]
Kerala 18 June 2018 [28]
Mizoram 15 March 2019 [29]


  1. "Commencement Notification" (PDF).<templatestyles src="Module:Citation/CS1/styles.css"></templatestyles>
  2. "Realty projects, brokers have to be registered with regulatory authorities by July 31". Economic Times. Retrieved 20 April 2017.<templatestyles src="Module:Citation/CS1/styles.css"></templatestyles>
  3. "Real Estate Bill is an act now, may protect home buyers". Economic Times. Retrieved 2 May 2016.<templatestyles src="Module:Citation/CS1/styles.css"></templatestyles>
  4. "Rahul Gandhi assures home buyers of a strong Real Estate bill", The Economic Times, 3 March 2016<templatestyles src="Module:Citation/CS1/styles.css"></templatestyles>
  5. "Will press for Real Estate Bill in Rajya Sabha, says Rahul Gandhi", The Economic Times, 5 March 2016<templatestyles src="Module:Citation/CS1/styles.css"></templatestyles>
  6. 6.0 6.1 "Modi government puts real estate bill on priority list to pass it in Budget session", The Economic Times, 27 February 2016<templatestyles src="Module:Citation/CS1/styles.css"></templatestyles>
  7. 7.0 7.1 7.2 "Lok Sabha takes up real estate bill, Congress assures support", The Economic Times, 15 March 2016<templatestyles src="Module:Citation/CS1/styles.css"></templatestyles>
  8. Sharma, Ravi Teja (15 March 2016). "Cheer for home buyers! After Rajya Sabha, real estate regulatory bill cleared by Lok Sabha as well". Economic Tilmes. Retrieved 20 March 2016.<templatestyles src="Module:Citation/CS1/styles.css"></templatestyles>
  9. 9.0 9.1 9.2 "Big cheer for homebuyers! Rajya Sabha passes Real Estate Bill", The Economic Times, 10 March 2016<templatestyles src="Module:Citation/CS1/styles.css"></templatestyles>
  10. page 34
  11. 09:57 AM. "What Is Rera Act In Telangana And it's Importance In Real Estate Sector". Retrieved 21 March 2019.<templatestyles src="Module:Citation/CS1/styles.css"></templatestyles>
  12. "Real Estate Rules notified today".<templatestyles src="Module:Citation/CS1/styles.css"></templatestyles>
  13. [1][dead link]
  14. "Housing Industry Regulatory Authority". Housing Industry Regulatory Authority. Retrieved 27 September 2018.<templatestyles src="Module:Citation/CS1/styles.css"></templatestyles>

External links