RERA Registration & Compliance: What Every Indian Builder Must Know

The Real Estate (Regulation and Development) Act, 2016—commonly known as RERA—was enacted to bring transparency, accountability, and efficiency to India’s real estate sector. Whether you're a builder, developer, or promoter, understanding RERA registration and compliance is essential to avoid penalties and build buyer trust. Here's everything you need to know.

Who Needs to Register Under RERA?

All builders and developers undertaking:

• Residential and commercial projects over 500 sq. meters or more than 8 apartments.

• Projects not yet completed or where occupancy certificate has not been issued.

• Ongoing projects without a completion certificate must also comply.

Documents Required for RERA Registration

To register a real estate project under RERA, developers must typically provide:

1. PAN card of the builder/firm.

2. Proof of ownership and land title.

3. Approved layout and building plan.

4. Project timeline and financial details.

5. Development agreement (if landowner and developer differ).

Key Compliance Rules Builders Must Follow

• Separate Bank Account: 70% of the project funds must be deposited into a dedicated account to be used only for that project.

• Regular Updates: Project status and progress must be updated on the RERA website every 3 months.

• Timely Delivery: Failure to hand over possession as promised can result in penalties or compensation to buyers.

• Advance Payment Limits: You cannot collect more than 10% of the property cost as advance without a sale agreement.

Penalties for Non-Compliance

• Up to 10% of Project Cost for not registering.

• Daily Penalties for continued default.

• Imprisonment up to 3 years for severe violations.

Benefits of RERA Compliance

• Builds credibility and trust with buyers.

• Easier access to institutional funding and loans.

• Protects builder reputation in a competitive market.

How Etax Saathi Helps Builders with RERA

At Etax Saathi, we assist builders across India with end-to-end RERA compliance services:

• Expert consultation and document collection

• Filing and submission on state RERA portals

• Continuous compliance monitoring and legal support

Need help with RERA compliance?
Book a Free Consultation with Etax Saathi’s Experts today!