Dissertation 106

A DISSERTATION ON
AN ANALYTICAL STUDY ON WORKING OF REAL ESTATE

REGULATORY AUTHORITY AS A REGULATOR IN STATE OF
GUJARAT
PREPARED BY: AADITYA SHAH
BATCH: 2018-2023
ACADEMIC YEAR: 2022
SEMESTER: IX
COURSE TITLE: IL-506 DISSERTION
INTEGRATED FIVE YEAR B.A.L.L.B PROGRAMME
NAME OF COLLEGE: GLS LAW COLLEGE
UNDER THE GUIDANCE OF:
DR. SUJA NAYAR
ASSISTANT PROFESSOR
GLS LAW COLLEGE
1
CERTIFICATE:
This is to certify that dissertation entitled “An Analytical Study on Working of Rera as a
Regulator in State of Gujarat” which is being submitted by Mr Aaditya Shah for the IL-506
Dissertation.
Mr Aaditya Shah has worked under my guidance and supervision to fulfil all requirements
for the submission of this dissertation.
______________________ _______________________
GUIDE: DR.SUJA NAYAR DR. MAYURI PANDYA
ASSISTANT PROFESSOR DIRECTOR
GLS LAW COLLEGE GLS LAW COLLEGE
2
DECLARATION:
This dissertation is a presentation of my original research work. Wherever contributions of

others are involved, every effort is made to indicate this clearly, with due reference to the
literature, and acknowledgement of collaborative research and discussions. This piece of
work has not been submitted before or published elsewhere.
The work was done under the guidance of Dr. Suja Nayar, Assistant Professor at GLS Law
College, Ahmedabad.
_________________________ _____________________________
PLACE: NAME OF STUDENT: AADITYA SHAH
DATE: ROLL NO: 106
GLS LAW COLLEGE
3
INDEX
DESCRIPTION
CHAPTER NO. PAGE
NO.
CHAPTER: 1 INTRODUCTION 7
1.1 Introduction
1.2 Meaning and definition of Real Estate Regulatory 12
Authority, 2016
1.3 History of Real Estate Regulatory Authority, 17
2016
1.4 Functioning of Real Estate Regulatory Authority 24
in India Particularly in Gujarat
CHAPTER: 2 RESEARCH METHODOLOGY 28

2.1 Significance Of The Study 29
2.2 Objective Of The Study 31
2.3 Importance Of The Study 32
2.4 Hypothesis 33
2.5 Research Tools And Techniques 34
CHAPTER: 3 LEGAL PERSPECTIVE OF RERA ACT, 38

2016
3.1 Legal view of Real Estate Regulatory Authority 38
Act,2016
3.1.1 Applicability and Extent of Real Estate 39
Regulatory Authority Act, 2016
3.1.2 Concept of Real Estate Regulatory Authority 44
Act, 2016
3.1.2.1 Concept of Real Estate Regulatory Authority 50
Act,2016 in Gujarat
3.2 Important Sections under Real Estate Regulatory 52
Authority Act,2016
3.3 Property Registration in Gujarat under 76
GujRERA ACT
3.4 Penal Provisions under Real Estate Regulatory 84
Authority Act,2016
3.4.1 Advantages of Real Estate Regulatory Authority 84
4
Act,2016
3.4.1.1 Disadvantages of Real Estate Regulatory 85
Authority Act,2016
3.4.2 Advantages to Buyer under Real Estate 85
Regulatory Authority Act,2016
3.4.3 Advantages to Promoter/Builder under Real 89
Estate Regulatory Authority Act,2016
3.4.3.1 Disadvantages to Promoters/Builders under Real 91
Estate Regulatory Authority Act, 2016
CHAPTER: 4 JUDICIAL PERSPECTIVE OF RERA ACT, 96

2016
4.1 Power of Appellate Tribunal 97
4.1.1 Offences, Penalties and Adjudication under 101
RERA Act, 2016
4.2. Grievances Redressal in Gujarat under 106
GujRERA Act
4.2.1 Complaint Filing Procedure under GujRERA 106
Act Offences,
4.2.1.1 Offences, Penalties and Adjudication under 115
GujRERA Act
4.3. Constitutional Validity of Real Estate 116
Regulatory Authority Act,2016
4.3.1 Judicial Review on Real Estate Regulatory 117
Authority Act,2016
4.4. Landmark cases of Supreme Court of India 121
4.4.1 Cases under Gujarat Appellate Tribunal 129
CHAPTER: 5 CONCLUSIONS AND SUGGESTIONS 138

5.1 Conclusion 139
5.2 Suggestions 140
5.3 Bibliography 142
5
CHAPTER 1: INTRODUCTION
6
1.1 INTRODUCTION ON RERA ACT, 2016
Real estate sector plays a catalytic role in fulfilling the needs and demand for housing and
infrastructure in the country and is an important pillar of the economy. While this sector
has grown significantly in recent years, it has been largely unregulated, with absence of
professionalism and standardisation and lack of adequate consumer protection. It has no
sectorial regulator like there are for other specific sectors like insurance, telecom, stock
markets etc. History is witness to the fact that whenever sectorial regulators like SEBI,
IRDAI, and TRAI etc. have been formed, they have helped in deepening the market and
made it more robust. Though the Consumer Protection Act, 1986 is available as a forum to
the buyers in the real estate market, the recourse is only curative and is not adequate to
address all the concerns of buyers and promoters in that sector. The lack of standardisation
has been a constraint to the healthy and orderly growth of industry. Therefore, since more
than a decade the need for regulating the sector was being emphasised in various forums.
In view of the above, Parliament enacted the Real Estate (Regulation and Development)
Act, 2016 which aims at protecting the rights and interests of consumers and promotion of
uniformity and standardization of business practices and transactions in the real estate
sector. It attempts to balance the interests of consumers and promoters by imposing certain
responsibilities on both.1 It seeks to establish symmetry of information between the
promoter and purchaser, transparency of contractual conditions, set minimum standards of
accountability and a fast-track dispute resolution mechanism. This Act will be put in
operation just like the Motor Vehicles Act passed by the Central Government, pursuant to
which respective State Governments (“SG”) and Union Territories (‘UT”) are required to
notify their own Rules, which would be in the lines of the Central Act and accordingly
administer their own State Rules. Accordingly, every SG and UT are to require to
promulgate their own Real Estate Rules which would be based on the lines of the central
Real Estate (Regulation and Development) Act 2016, and establish a Real Estate
1
https://www.icsi.edu/media/webmodules/REAL_ESTATE_REGULATION_AND_DEVELOPMENT_ACT.pdf
7
Regulatory Authority (“RERA”) pursuant to the Rules, which will administer the
respective Real Estate Rules of the State or UT. State Governments and UTs were required
to notify and enforce RERA by 1st May 2017, which was the deadline set by the Central
Government. But a few State Governments have missed the deadline of 1st May 2017. It
is expected that most of the State Governments would meet the second deadline of 31st
July 2017, by which the ongoing projects are to be registered with RERA. 2
Real estate, as a general term, describes the built environment, which plays a vital role in
every aspect of an economy, society and environment. Businesses and society can't
function without the services of commercial property, including the provision of offices,
shops, factories, malls and many other forms of real estate. The commercial property sector
delivers and manages the infrastructure needed for entrepreneurship to thrive. It is therefore
a fundamental source of employment and economic growth, and a major contributor in
addressing two critical challenges of our time: providing liveable and functioning cities for
a growing urban population and reducing the environmental footprint of the built
environment. The real estate has a catalytic role in fulfilling the demand for housing for
the various socio-economic classes. Equally important is need to provide the backup
infrastructure covering utility services such as water supply, sewerage, drainage, roads and
transport requirements as well as social infrastructure like schools, health and recreation
facilities, commercial infrastructure like markets/malls, office complexes, technology
parks etc. The cumulative effect of these demands places the onus on the real estate and
construction sector, providing an excellent opportunity for conferring social benefits which
could act as a major vehicle for kick-starting the economy.
The Indian economy experienced robust growth in the past decade and is expected to be
one of the fastest growing economies in the coming years. It has also been estimated that
real estate contribution to India’s GDP is estimated to increase to about 13 per cent by
2028. Increasing share of real estate in the GDP would be supported by increasing
2
https://www.bing.com/ck/a?!&&p=83457b68253db330JmltdHM9MTY2MzAyNzIwMCZpZ3VpZD0xNzdhN
mMwYy1mMTk1LTY0Y2UtMmZhZi03ZGU1ZjA2ZDY1MGMmaW5zaWQ9NTE5MA&ptn=3&hsh=3&fclid=17
7a6c0c-f195-64ce-2faf-
7de5f06d650c&u=a1aHR0cHM6Ly93d3cuaWNzaS5lZHUvV2ViTW9kdWxlcy9SRUFMX0VTVEFURV9SRUdVT
EFUSU9OX0FORF9ERVZFTE9QTUVOVF9BQ1QucGRmLw&ntb=1 (Accessed on 14th September 2022,
11.10pm)
8
industrial activity, improving income level, and urbanisation. The growth of real estate
sector is not only driven by growing economy but policy support from government as well.
For instance, Government plans to build 100 smart cities which would reduce the migration
of people to metro and other developed cities. Government initiatives such as various urban
development policies and programmes (e.g., JNNURM, Land Acquisition Act. Affordable
Housing, Ease in housing finances, Widening the scope of real estate market, change in
FDI Regulation) are expected to contribute to enhanced urbanisation. Urbanisation and
growing household incomes are driving demand for residential real estate and growth in
the retail sector. India’s urban population as a percentage of total population was around
32.4 per cent in 2016 and is expected to rise to 40 per cent by 2030. Industry players,
including realtors and property analysts, are rooting for the creation of "Special Residential
Zones" (SRZs), along the lines of SEZs.
The objects and reasons for which the Act has been framed are: 3
• ensure accountability towards allottees and protect their
• infuse transparency, ensure fair-play and reduce frauds & delays
• introduce professionalism and pan India standardization
• establish symmetry of information between the promoter and allottees
• imposing certain responsibilities on both promoter and allottees
• establish regulatory oversight mechanism to enforce contracts
• establish fast- track dispute resolution mechanism.
The long-pending real estate regulatory Act (RERA) has finally become a law from May
1, 2017, bringing in the much-needed transparency and setting accountability in the
unorganised real estate sector. Developers will now have to get all their ongoing and new
projects registered with regulatory authorities. Real estate agents also have three months
to register themselves. From keeping 70% of a project's funds in a separate bank account
to penal provisions for developers, agents and home buyers, RERA looks to cover all the
3
https://www.icsi.edu/media/webmodules/REAL_ESTATE_REGULATION_AND_DEVELOPMENT_ACT.pdf
9
bases to clean the real estate sector.
Here's the chronology of events leading to regulation of real estate sector including both
residential and commercial segments from May 1, 2017:
May 20084: Ministry of HUPA (Ministry of Housing and Urban Poverty Alleviation)
prepares a concept paper on regulation of real estate sector and a model law for legislation
by States/Union Territories.
2011: Conference of Ministers of Housing in 2011 suggests a central law for the regulation
of real estate sector.
July 2011: Ministry of Law and Justice suggests central legislation for regulation.
June 2013: Union Cabinet approves Real Estate Bill, 2013.
August 2013: Real Estate Bill introduced in Rajya Sabha and referred to Standing
Committee.
February 2014: Report of Standing Committee laid on the Tables of both Houses of
Parliament.
February 2014: Attorney General upholds validity of central law for regulation of the Real
Estate sector.
April 2015: Union Cabinet approves official amendments based on recommendations of

Standing Committee.
May 2015: Matter referred to the Select Committee of Rajya Sabha.
July, 2015: Report of Select Committee tabled in Rajya Sabha.
https://www.bing.com/ck/a?!&&p=83457b68253db330JmltdHM9MTY2MzAyNzIwMCZpZ3VpZD0xNzdhN
mMwYy1mMTk1LTY0Y2UtMmZhZi03ZGU1ZjA2ZDY1MGMmaW5zaWQ9NTE5MA&ptn=3&hsh=3&fclid=17
7de5f06d650c&u=a1aHR0cHM6Ly93d3cuaWNzaS5lZHUvV2ViTW9kdWxlcy9SRUFMX0VTVEFURV9SRUdVT
EFUSU9OX0FORF9ERVZFTE9QTUVOVF9BQ1QucGRmLw&ntb=1 (Accessed on 14th September 2022,
11.10pm)
10
December 2015: Real Estate Bill, 2015 incorporating several modifications based on
Select Committee report and stakeholder consultations approved by the Union Cabinet.
March 10, 2016: Rajya Sabha passes The Real Estate (Regulation & Development) Bill,
2016.
March 15, 2016: Lok-Sabha passes the Bill as passed by Rajya Sabha.
March 25, 2016: President gives assent to the Bill.
April 26, 2016: 59 Sections of the Act notified, making them effective from May 1, 2016,
enabling preparation of Real Estate Rules, setting up of Regulatory Authorities and other
infrastructure.
April 19, 2017: Remaining 32 Sections of the Act notified making them effective from
May 1st this year requiring registration of projects within three months from tomorrow.
May 1, 2017: The Real Estate (Regulation and Development) Act or RERA comes into
force, bringing in the new era begins for the development of real estate sector in an
atmosphere of investor confidence.5
RERA or The Real Estate (Regulation Development) Act, 2016 has come into effect from
today. The Act would regulate the real estate sector that involves over 76,000 companies
and is expected to trigger a “new era” of transparency and efficiency for both the buyers
and developers. In a series of tweets on Sunday, Venkaiah Naidu, Union Minister of
Housing and Urban Poverty Alleviation said: “Real Estate Act coming into force after a
nine-year wait marks the beginning of a new era making buyer the King while developers
benefit from the confidence of the King in the regulated environment. Prime Minister
Shri Narendra Modi’s personal interest in the matter made the Act a reality now. The Act
ushers in the much desired accountability, transparency and efficiency in the sector with
the Act defining the rights and obligations of both the buyers and developers. This
5
https://www.bing.com/ck/a?!&&p=058392a5ac9b0463JmltdHM9MTY2MzAyNzIwMCZpZ3VpZD0xNzdhN
mMwYy1mMTk1LTY0Y2UtMmZhZi03ZGU1ZjA2ZDY1MGMmaW5zaWQ9NTE4Mw&ptn=3&hsh=3&fclid=17
7de5f06d650c&u=a1aHR0cHM6Ly9jb250ZW50Lm1hZ2ljYnJpY2tzLmNvbS9wcm9wZXJ0eS1uZXdzL3JlcmEtd
GltZWxpbmUtY2hyb25vbG9neS1vZi1ldmV (Accessed on 15th September 2022)
11
important legislation gained momentum under this Government and could see the light
finally”. 6
In the last decade, the real estate sector flourished at an unprecedented rate, especially in
areas around Delhi. However, consumers of this sector faced a huge problem due to lack
of proper legislation. Unregulated, developers would often make empty promises about the
date of completion, requisite charges, carpet area etc. to defraud buyers and extract huge
amounts of money from them. Thus, investment in the real estate sector used be a risky
one. Therefore, Real Estate (Regulation and Development) Act, 2016 was enacted to bring
about effective remedies for home buyers and to protect their rights, holding defaulting
developers and builders liable for their actions.
The implementation of assured buyers in the real estate sectors about the authenticity of a
project. RERA has brought about transparency in this industry, the various checks and
restriction placed on builders of a projects through RERA can convince buyers that the
money they invest in a project will not be fraudulently siphoned off and that they will
reimbursed for any unjustified delays.
It is still too early to say how effectively RERA will be implemented. State Governments
have complied with the requirements of creating regulatory bodies charged with
registration, dispute settlement, redressal procedure, etc. Home buyers have regained some
amount of confidence in the RERA. The poll revealed that in case of delay in possession,
72% of home buyers would file a RERA complaint, this shows the awareness people have
about RERA and the confidence they have imbued in it. 7
1.2 MEANING AND DEFINITION OF REAL ESTATE

REGULATORY AUTHORITY (RERA ACT, 2016)8
6
RERA: Timeline of Real Estate (Regulation and Development) Act 2016 and how it will affect you | The
Financial Express (Accessed on 15th September, 2022)
7
Brief Introduction to RERA (centrik.in) (Accessed on 15th September 2022)
8
https://www.magicbricks.com/blog/what-is-rera/125759.html Accessed on 15th September 2022, 12.05
am)
12
RERA full form is Real Estate (Regulation and Development) Act, 2016.
RERA was formulated to regulate the hitherto unorganised and unregulated real estate
sector of India. In the absence of an efficient regulator, the incidents of tussle and disputes
between homebuyers and developers were on the rise.
The RERA Act of 2016 was implemented to address the concerns and grievances of real
estate developers, homebuyers, realty agents, and other stakeholders of the real estate
sector. After the implementation of the RERA Act, Rera approved projects are preferred
by the homebuyers.
All real estate projects of more than 500 sq. m must be registered with respective RERA
authorities. In addition to this, every such builder has to inform the homebuyer of the
progress of construction, abide by the timelines and follow the rules as stated in the RERA
Act.9
RERA was enacted in 2017 to regulate the Indian Real Estate Sector. The main objective
of RERA is to safeguard the interest of homebuyers as well as bring in standardization in
the real estate sector. So we are going to look at the 5 important definitions in RERA which
every real estate stakeholder must know.
Carpet area-“carpet area is defined as 'the net usable floor area of an apartment,
excluding the area covered by the external walls, areas under services shafts, exclusive
balcony or verandah area and exclusive open terrace area, but includes the area covered
by the internal partition walls of the apartment'”.
Commencement certificate- As per Section 2(m) of the RERA Act, 2016, "commencement
certificate" means the commencement certificate or the construction permit, issued by the
competent authority to allow or permit the promoter to begin the development works on
immovable property, as per the sanctioned plan.
Completion certificate- "completion certificate" means the completion certificate, or such

other certificate, by whatever name called, issued by the competent authority certifying
9
What is RERA? Know all about RERA Act 2016, Registration, Benefits, Penalty (magicbricks.com)
(Accessed on 15th September 2022, 12.05 am)
13
that the real estate project has been developed according to the sanctioned plan, layout plan
and specifications, as approved by the competent authority under the local laws;
Occupancy certificate-"occupancy certificate" means the occupancy certificate, or such

other certificate by whatever name called, issued by the competent authority permitting
occupation of any building, as provided under local laws, which has provision for civic
infrastructures such as water, sanitation, and electricity; 10
"Interest" means the rates of interest payable by the promoter or the allottee, as the case
may be. Explanation.—For the purpose of this clause— (i) the rate of interest chargeable
from the allottee by the promoter, in case of default, shall be equal to the rate of interest
which the promoter shall be liable to pay the allottee, in case of default; (ii) the interest
payable by the promoter to the allottee shall be from the date the promoter received the
amount or any part thereof till the date the amount or part thereof and interest thereon is
refunded, and the interest payable by the allottee to the promoter shall be from the date the
allottee defaults in payment to the promoter till the date it is paid.
The Real Estate (Regulation and Development) Act, 2016 (RERA) will finally give India’s
real estate sector its first regulator from Monday, May 1, 2016. The act was passed by
parliament last year and the Union Ministry of Housing and Urban Poverty Alleviation had
given time till May 1, 2017, to formulate and notify rules for the functioning of the
regulator. RERA seeks to bring clarity and fair practices that would protect the interests of
buyers and also impose penalties on errant builders.11
According to RERA, each state and Union territory will have its own regulator and set of
rules to govern the functioning of the regulator. Centre has drafted the rules for Union
territories including the national Capital. While many states are still behind on schedule for
notification of RERA rules, many have notified rules and a regulator will start functioning.
Some of these states are Haryana, Uttar Pradesh and Maharashtra.
10
Important definitions in RERA (rerafiling.com) (Accessed on 15th September 2022, 12.23 am)
11
What is the Real Estate Regulation Act (RERA)? Here is how it will help buyers | What Is News,The Indian
Express (Accessed on 15th September 2022, 12:34 am)
14
RERA seeks to address issues like delays, price, quality of construction, title and other
changes. Delays in projects are the biggest issue faced by buyers. The reasons are many
and the impact is huge. Since the last 10 years, many projects have seen delays of up to 7
years. Projects launched after the turn of this decade have faced delays as well. Some have
run into obstacles even before a brick was laid. The reasons include diversion of funds to
other projects, changes in regulations by authorities, the environment ministry, national
green tribunal etc. and other bodies like those involved in infrastructure development and
governing transport. In many places, land acquisition becomes an issue. Errant builders
often sell projects to investors without the approval of plans, unauthorised increase in FAR,
bad quality of construction, projects stuck in litigation etc.
The Real Estate Regulatory Authority (RERA) is a government agency that regulates the
real estate industry. Its goal is to protect home buyers’ interests while also encouraging
real estate investment. Authority in Real Estate The previous administration introduced a
bill in Parliament in 2013, which was not enacted at the time for various reasons, but was
later incorporated in the bill in December 2015 based on the recommendations of the
Rajya Sabha committee after the new government took office. The bill was assigned to a
selection committee, which delivered its report to the government in July 2015. This bill
was enacted by the Lok Sabha on March 10, 2016, and the Rajya Sabha on March 15,
2016, and it went into effect on May 1, 2017. People are expecting the Real Estate
Regulation and Development Act to provide openness and accountability in the real
estate sector, as well as to ensure that developers are not defrauded. This act will also
ensure that consumers do not have to wait long for their homes.12
RERA GUJARAT (GujRERA,2017)

The inception of the Real Estate Regulatory Authority was a ground-breaking and
revolutionary move as it brought a paradigm shift in the real estate sector. Unquestionably,
the existence of this regulatory body is a blessing in disguise for the real estate sector as it
successfully created a concrete and transparent real estate ecosystem. Beyond that, to win
12
RERA Full Form – What Is RERA, Definition, Meaning, Uses - Whatisfullform.co.in (Accessed on 15th
September 2022, 12.37 am)
15
the trust of the homebuyers in Gujarat, the state government came into action with the
GujRERA in 2017 (RERA Gujarat).
The sole aim of RERA Gujarat is to provide a sustainable, credible and trustworthy
environment for both the homebuyers and agents. It predominantly regulates the real estate
sector and eliminates the scope of fraudulent and unscrupulous activities. In addition, it
mitigates non-compliance from the real estate sector. Gujarat Real Estate Regulatory
Authority is moving at a fast pace to achieve all its desired goals.
To achieve goals, Gujarat RERA from time to time comes up with new-fangled customer-
oriented solutions and tries to upkeep stellar communication with stakeholders. In a
nutshell, if you are looking to purchase a RERA registered property, then get stress-free as
you are investing in a legitimate property that possesses all the licenses and clearances.
So far, 1675 Agents and 8965 Projects are registered under RERA Gujarat. Moreover, the
biggest achievement for the RERA Gujarat authority is they have taken up 2839 complaints
and have resolved them with flying colours. 13
After the implementation of Real Estate (Regulation and Development) Act, 2016 major
changes can be seen and felt in the field of Real Estate. The Home Buyers who had spent
their hard earned savings in buying the property were being harassed by the errant builders,
however after Real Estate (Regulation and Development) Act, 2016 came into force, the
errant actions of the builders are put under strict vigilance. Under the Real Estate
(Regulation and Development) Act, 2016, the State government is required to establish
Real Estate regulatory authority for the regulation and promotion of the real estate sector
in the State.
13
https://www.squareyards.com/search (Accessed on 15th September 2022, 11:05 am)
16
The newly born RERA has spread its wings and roots in the state of Gujarat, which has
witnessed significant changes in the field of real estate sector and topples the list after
Maharashtra and Uttar Pradesh.
After the implementation of the RERA Act, the State of Gujarat has notified its final
Gujarat RERA Rules, 2017 on 29.10.2016 which prescribes regulation, form and process
for – RERA registration by Builders and agents; RERA authority constitutions; Filing
complaints before RERA Authorities and the Complaint redressal system.
It is prominent to note herein that till date overall 3880 real estate projects have been
successfully registered under the Gujarat RERA and on the other hand the Authority has
issued certificates to 702 agents. By doing so the Gujarat RERA has bagged 3rd position
in the registration of the projects in between the 15 states which has successfully implement
RERA. 14
1.3HISTORY OF RERA ACT, 2016
History of Real Estate Regulation Authority consist of 3 different aspects comprising:
1. A Model Act for Real Estate Regulation of Development, 2009.15
The Model Real Estate (Regulation of Development) Act (the proposed Real Estate
Regulatory Bill), was unveiled as an item under the 100 days’ agenda of the Ministry of
Housing and Urban Poverty Alleviation, on June 30, 2009. Subsequently, a draft of the bill
was prepared and put in the public sphere by the ministry, in September 2009, inviting
comments and suggestions. Since then, according to the ministry, it has received over 350
observations from real estate associations, developers, consumer and state governments.
14
An overview of RERA implementation in Gujarat (centrik.in) (Accessed on 15th September 2022, 11.24
am)
15
Decoding the Model Real Estate Regulation Act - The Economic Times (indiatimes.com) (Accessed on
15th September)
17
According to the ministry, a modified draft of the bill is being prepared for further
consultation, with a wider audience, before the same gets finalised and moves towards
becoming an act. The purpose of the proposed Real Estate Regulatory Bill, is to promote
planned and healthy real estate development. The two key objectives of the bill are
protecting property purchasers’ interests and to facilitate smooth urban construction.
The regulation of activities of property developers and builders in India is a state subject
and comes under the purview of the respective state governments, urban local bodies
(ULBs) and development authorities, under the provisions of State Town and Country
Planning or City Development Authority Acts. This has led to inconsistency, vis-à-vis rules
and regulations being followed in governing, constructing, purchasing, transferring and
leasing of properties across the country. The Model Real Estate Act aims to mend these
inconsistencies and focus on the well-being of the property purchaser.
The model bill proposes to establish a regulatory authority, to control and promote the
construction, sale, transfer and management of colonies, residential buildings, apartments
and other properties. The regulatory authority shall consist of a chairperson and two
members to be appointed by the government, from among those who have professional
knowledge and experience in the field of public administration, urban development,
finance, law, or management.
The key function of the regulatory authority would be to ensure compliance of the
obligations cast upon the promoters (property developers) and allottees (property
purchasers) under the model act. The authority would also maintain a website, with the
records of all real estate projects with all details, as provided in the application for
registration. The real estate regulator would have the important task of evolving a
consensus among various stakeholders, such as central or state governments, the Bureau
of Indian Standards, urban local bodies, developers, associations of engineers and
architects, on various issues like structural safety, speedy grant of planning permissions,
building approvals and licenses, rating of real estate projects and promoters, reliable land
title certification system, speedy and transparent registration of properties, statutory
framework for equitable and balanced relationship between landlord and tenant and to
promote additional housing.
18
Secondly, the model act provides for the establishment of a ‘real estate appellate tribunal’,
to adjudicate any dispute and to hear and dispose appeals against any direction, decision or
order of the regulatory authority. Furthermore, the model bill has outlined in detail, the role
of the promoter (property developer) and its obligation towards the regulatory authority
and allottees (property purchasers). The developer, under the model act, is obligated to
make available for inspection all documents and information to prospective purchasers.
The builder is obligated by the model act to enter into a written agreement of sale, with the
prospective purchaser, before taking any advance or deposit. After the execution of the
agreement of sale, the promoter is not entitled to create a mortgage charge on the plot,
building or apartment, without the prior written consent of the buyer of the same. In
addition, the promoter is expected to file all the details of the project with the regulatory
authority and give details of every advertisement/ prospectus and the names of property
dealers or middlemen dealing in the project. 16
In order to make the proposed act effective, penalties have been stated for those who fail
to comply with or contravene its provisions. The Model Real Estate (Regulation of
Development) Act seeks to bring about a much-needed lucidity and uniformity in the fast
growing Indian real estate sector. According to Sarang Wadhawan, MD, HDIL, “There
should be more deliberation on the matter and a consensus should be built, keeping in mind
the interests of all stakeholders, so that when the act comes into being, it is unbiased in
nature and spirit.” The proposed legislation, it is hoped, will lead to better information-
sharing and decision-making, between builders/developers and the public/consumers. 17
2. 2011 DRAFT BILL18
India is one of the emerging markets for real estate in India. In terms of employment, the
real estate sector is second only to Agriculture. The Economic Survey of 2010-11 states
16
Microsoft Word - Model Real Estate Act.doc (prsindia.org) Accessed on 15th September)
17
Decoding the Model Real Estate Regulation Act - The Economic Times (indiatimes.com) (Accessed on
15th September 2022, 11.43 am)
18
The Real Estate Regulation and Development Bill, 2011 (legalservicesindia.com) Accessed on 15th
September)
19
that the GDP from the real estate sector along with business services witnessed a growth
of 7.5 per cent (at constant prices) in the year 2009-10. In terms of share, it accounted for
9.3 per cent of the GDP in the year 2009-10.’ The real estate sector is undoubtedly a
major driver of the nation’s growth and an important contributor to GDP.
Nevertheless, this sector suffers from a number of challenges which hamper its healthy
growth and development, and consequently the economy of the nation. The primary
concern today in the Indian real estate sector is its extremely opaque nature, and absolute
lack of transparency. Lack of proper regulation has resulted in the sector transforming
into a hub for black money and corruption. There is an urgent need for the opening and
regulation in a way which instils transparency and operational clarity into the real estate
sector.
It is with this objective that the Central Government has come up with The Real Estate
(Regulation & Development) Bill, 2011 and has recently tabled it in Parliament. The Bill
is an attempt to regulate and ensure planned development in the real estate sector by
efficient and transparent sale of immovable properties. This is sought to be done, inter
alia, by the establishment of a Real Estate Regulatory Authority (RERA) and an
Appellate Tribunal, namely the Real Estate Appellate Tribunal (REAT) for speedy
resolution of disputes.
However, there are certain defects in the Bill which unless addressed, are likely to cause
the Bill to fail in achieving its purpose. As shall be discussed in the following paragraphs,
the Bill needs to attend to certain vital issues in order to avoid becoming just another
regulatory body resulting in addition to the existing sea of red tape.
As mentioned earlier, the primary motive behind the drafting of this bill has been to
introduce transparency and effective regulation in the real estate sector. The objectives of
the Bill are:
· Regulation and planned development in the real estate sector;
· To ensure sale of immovable properties in an efficient and transparent manner;
· To protect the interest of consumers in the real estate sector; &
20
To establish an Appellate Tribunal to adjudicate disputes and hear appeals from the
decisions or orders of the Authority and for incidental/connected therewith. The key
aspect of this Bill, as incorporated under Section 17, is the establishment of a Real Estate
Regulatory Authority (hereinafter ‘the Authority’). This Authority shall be a body
corporate with powers, subject to the provisions of the Act, to acquire, hold and dispose
of property, to enter into contracts, and may sue or be sued. The Authority would have
the following functions, inter-alia, as per Section 29 of the Bill. 19
Section 29 of the bill, inter alia, talks about the various functions of the Authority such as
advising the appropriate governments in matters relating to the real estate sector,
publishing and maintaining a website of records of all real estate projects, fixing the
standard charges to be levied on allottees by the promoter or the association of allottees,
ensuring compliance of the obligations cast upon the promoters and the allottees under
the Act and to make inquiries regarding the same.
Thus the Act provides for many functions of the Authority to promote transparency and
clarity in the Indian real estate sector. It further ensures ease of access to information by
providing for the creation of an online database so that any person may have access to all
relevant information at the click of a button. Section 3 of the Bill mandates the promoter
to obtain certificate from the Real Estate Regulatory Authority, for carrying out the
development of any immovable property, making/altering construction, or conversion of
any existing underdeveloped property. However registration is not required under in
cases where the area proposed to be developed is less than 4000 sq. meters (or an area
notified by the Central Govt. in consultation with the State Government), the promoter
has received due permissions prior to the commencement of Act, or renovation/repair
does not involve re-allotment & marketing of immovable property. Thus, all promoters
would have to first get a certificate of approval from the Authority, only then would they
be able to carry out any development work on any immovable property. However, it is
19
September)
21
important to note that registration would not be required for the development of an area
less than 4000 sq. meters.
The Bill provides for punishment for non-registration, the same attracting heavy fines of
up to 10% of the project amount or even imprisonment up to 3 years. It is pertinent to
note that the Authority is empowered to revoke the registration of a promoter suo-moto or
upon the recommendation of competent authorities on the grounds laid down in the Bill.
It is thus clear, that harsh punitive measures and heavy fines have been resorted to ensure
compliance of its provisions. The Authority also has the power to revoke registration of
promoters’ suo-moto, i.e. on its own motion on grounds laid down in the Bill. 20
The Draft Bill provides for the establishment of a Real Estate Appellate Tribunal under
Section 35. This Tribunal would be the appellate body for disputes arising within the real
estate sector and for appeals against decisions of the Real Estate Regulatory Authority.
Further appeal would lie to the Supreme Court on the various grounds mentioned under
the Bill. Thus the Bill aims at creating a hierarchy of courts on the lines of other
regulatory bodies such as TDSAT, or the CCI, thereby creating a system of specialised
courts to resolve disputes in the real estate sector.
A final notable feature of the Real Estate Bill is the Central Advisory Council, which is to
consist of, among others, representatives from the Government as well as the real estate
industry. The function of the Central Advisory Council shall be to advise the Central
Government on all matters pertaining to the real estate sector.21
The Real Estate (Regulation and Development) Bill 2011 is an attempt to make builders
accountable by establishing an authority to regulate, control and promote development,
sale, transfer and management of properties, bring transparency, safeguard public interest
and to facilitate speeding up the construction and maintenance of properties. The draft Bill
20
September)
21
The Real Estate Regulation and Development Bill, 2011 (legalservicesindia.com) (Accessed on 15th
September 2022, 3.05 pm)
22
calls for stringent disclosure norms and mandatory registration for every new housing
project. The legislation aims at a major overhaul of the real estate sector while curbing
unfair practices.
3. REAL ESTATE BILL, 201322
The Real Estate (Regulation and Development) Bill, 2013 was introduced in the Rajya
Sabha on August 14, 2013 by the Minister of Housing and Poverty Alleviation, Dr Girija
Vyas.
The Bill seeks to establish Real Estate Regulatory Authorities (RERAs) at the state level
for the regulation and development of the real estate sector. It aims at
(a) Ensuring consumer protection and
(b) Standardisation in business practices and transactions in the real estate sector. Real
Estate Regulatory Authority: RERAs must be established by the appropriate governments.
Two or more state governments can establish a RERA jointly, and conversely, a state can
have more than one RERA. Each authority will consist of a chairperson and two or more
full time members.
Key functions of the RERA include:23
(a) Rendering advice to the appropriate government on the development of the real estate
sector and
(b) maintaining and publishing records relating to real estate projects on its website. The
RERA might conduct an inquiry into the affairs of, issue directions to, and penalise any
(1) promoter, defined as any person or public authority concerned with the development
of land for the purpose of selling,
22
The Real Estate (Regulation and Development) Bill, 2013 (prsindia.org) (Accessed on 15th September
2022)
23
Main features, Benefits & Advantages of Real Estate Bill, 2013 (taxguru.in)
23
(2) allottee, defined as a person who is allotted, or purchases the building, plot or apartment
or (c) real estate agent if required. It may refer the case to the Competition Commission of
India.
Central Advisory Council (CAC): The CAC will be chaired by the head of the
Ministry of the central government dealing with housing and will consist of members from
other concerned ministries, state governments and private members. It will advise the
central government on matters concerning the implementation of the Act, especially
relating to consumer protection, and policy matters.
Real Estate Appellate Tribunal: A tribunal, consisting of a chairperson and two

members, shall be established to settle disputes related to the provisions in the Act. It shall
have the powers of a civil court.
Registration of real estate projects and agents: Real estate projects must be registered with
the RERA if the area of the land to be developed exceeds one thousand square meters or
involves the construction on more than twelve apartments. Real estate agents must register
themselves with the RERA in order to facilitate any real estate transactions.
Functions and duties of the promoter: The promoter must
(a) make information about the project such as updates on the construction of buildings
available to the allottee
(b) compensate the allottee on any damages incurred as a result of false advertising; and
(c) not accept more than 10% of the total cost of the building without entering into a written
agreement with the allottee. If the promoter is unable to give possession of the building to
the allottee he or she is liable to return the entire amount given to him by the allottee with
interest.
Offences, penalties and adjudication: The Bill outlines various penalties for non-
compliance with the provisions of the Act. Penalties for a promoter are up to 10% of the
total cost of the real estate project and penalties for allottees are up to 10% of the total cost
24
of the apartment, for various offences. Adjudicating officers shall determine compensation
to allottees. 24
1.4 FUNCTIONING OF RERA IN BRIEF PARTICULARLY IN

STATE OF GUJARAT
The motive behind an introduction of the RERA Act, 2016, was to ensure greater
transparency, speedy dispute redressal, and ensure capital into the real estate sector.
Therefore, RERA Authority playing a role in this matter, is given some responsibilities to
fulfil the ultimate objective. Every State Government must, within one year from the date
of coming in force of the Act. The Authority must be Body Corporate having a name as
aforesaid, having perpetual succession and a common seal with power subject to provisions
of the Act.
Functions of the RERA Authority:
Section 34 of the RERA Act, 2016 defines functions of a RERA Authority which it needs
to follow:
1. Firstly an authority must obtain RERA registration for a project and for real estate
agents with it. Consequently, it must also regulate the registered projects with it.
2. For public viewing, the Authority has to publish and maintain a website of records
of all real estate projects with relevant details which required to be furnished.
3. For public viewing, an authority must maintain a database on its website with
names and photographs of the promoters as defaulters, including all details of a
project or any imposed penalty.
24
Microsoft Word - The Real Estate _Regulation and Development_ Bill, 2013 final summary.docx
(prsindia.org) (Accessed on 15th September 2022, 4.08 pm)
25
4. For public viewing, an authority must maintain a database on its website with the
names and photographs of the real estate agents who have applied and registered
under the Act.
5. The fixation of a standard fee to be paid by a promoter, agent, or allottee through
regulations according to the jurisdiction.
6. It must ensure that an obligation of the promoters, agents, or allottees is duly
complied with according to the RERA Act.
7. The Authority must look that the orders, directions, or regulations issued by it are
duly complied too by relevant parties.
8. It must ensure that all other functions given to it by an appropriate Government to
carry out necessary provisions of this Act are duly performed by it. 25
The applicant can be either appear in person or authorize one or more practicing CA or
Advocate or any of his officers to present a case before an Adjudicating Officer. No civil
court must have jurisdiction to entertain any suit or proceedings in respect of any of the
matter over which an Adjudicating officer, RERA Authority, or RERA Appellate Tribunal
is empowered by under the act to decide the matter.
FUNCTIONING OF THE AUTHORITY
25
Functions and Powers of RERA Authority - Corpbiz (Accessed on 15th September 2022)
26
FUNCTIONS OF RERA IN STATE OF GUJARAT: 26
1. Safeguards the interest of homebuyers and developers

2. Boosts the investment in the real estate sector
3. Endorses transparency and credibility in the real estate sector of Gujarat
4. Offers prompt dispute redressal
5. Facilitates well-time and organized project implementation
FUNCTIONING OF RERA:
The Authority of RERA can suggest the Central Government help the estate sector grow
and be promoted. It can make recommendations in the following areas:
1. Fortification of the promoter’s, builders’, allottees’, and estate agents’ interests;

2. Establishment of a single-window instrument for confirming timely sanctions for
project completion;
3. Establishment of a Robust Grievance Redressal System in contradiction of the
competent authority’s act, instruction, and omission;
4. Methods for Promoting Real Estate Investments;
5. Measures to increase financial support for the reasonable housing sector;
26
Duties & Functions of RERA Authority - Vakilsearch | Blog
27
6. Methods to encourage the building of affordable and ecologically supportable
housing
7. Efforts to promote the usage of suitable building fixtures, fittings, techniques and
materials; 27
27
Duties & Functions of RERA Authority - Vakilsearch | Blog (Accessed on 15th September
2022, 9.30 pm)
28
CHAPTER -2 RESEARCH METHEDOLOGY:
29
In the named topic following methodologies are adopted:
PRIMARY RESEARCH:
This research is based on primary research wherein the reliance is placed on legal
prospects. It is research into the law and legal aspects/concepts. The source of data are
generally used before such as articles and definitions.
SECONDARY RESEARCH:
1. Through particular books

2. Through various legal/law journals
3. Through various articles i.e. legal and non-legal
4. Through various authorised governmental and non-governmental websites.
5. My own views
2.1 SIGNIFICANCE OF THE STUDY
Real estate industry is the most capital-intensive industry and it is most volatile industry.
Any change in the policy of government directly or indirectly affect the industry in positive
or negative manner. Consideration the growth of rapid urbanization in the country it
become utmost necessary to keep a check on the industry. The industry should be beneficial
to all its stakeholders and not just the developer. The real estate industry was functioning
in a more hazardous ways where the developer was not able to stick to their promises of
quality and delivery of the project. Due to this the customer used to face many problems.
Due to such behaviour of developer there was trust gap observed between the stakeholders.
As many other industries are dependent on real estate industry, it was utmost necessary to
resolve the issue. For this Government of India came up with RERA bill which put some
restriction and check on all the stakeholders of the industry. This study is done to analyse
the act and suggest some of the changes that can be implemented in order to make the
system more business friendly and efficient.
There was a trust gap between the developer and the buyer. Real estate sector as and when
have seen the recession, one of the major factors had been trust. Buyers were always been
30
in the fear that the developer will not give possession on time or he will not provide the
required documents or he will not give the said quality of property. They were a fear that
developer will fly-by-night. India’s real estate sector has been one of the world’s largest
market. According to the report India’s real estate sector is of around 7 lakh cr. Out of
which almost 6 lakh crores come from unorganized sector and the rest is organized sector.
Unorganized sector being the dominant in the sector, there was a need of the transparent
government body which keep a check on the unorganized companies and forced them to
come under the organized sector. Developer were selling the property on super built up
area and home buyers end up paying more and receive lesser usable space. Home buyers
had to give booking amount to booked the apartment and rest of the payment in instalments
without knowing where is there money being used, developer use the money to purchase
new land rather than completing the existing project. There was no mechanism to check
the credibility of the developer and have to rely on the market image of the developer.
There was no specific redressal mechanism for the sector for delay in delivering and other
related project. In other ways RERA was also needed from the side of developer as it can
keep the check on inventory and will filter out the non-capable developer in the sector so
that there remain companies which see larger stake in the business and indulge more
professionalism. A regulation like RERA was needed in order to revive confidence in our
country’s real estate sector. It is one of the leading revenue generators in our country and
it is needed some transparent government authority to keep a check on developers. RERA
will provide a common ground for both buyers and developers and will reduce the risks
which were faced by the people before. RERA is of extreme significance as it will be
applicable to more than 76,000 companies across the country. This act mandates a number
of things like registration of projects and real estate agents which have become mandatory
now. A buyer will have all the rights to know every detail about a real estate project and
will also have the right to get all the documents related to the project. RERA establishes a
state authority which will govern both residential and commercial real estate transactions.
RERA will ensure timely delivery of the project which is a big sigh of relief to home
buyers. RERA will guarantee more precision between the developers and buyers thereby
ensuring transparency.
31
According to the data above there is a huge amount of investment that was stuck in real
estate sector before RERA come in the implementation. Also, many projects were delayed,
the delayed was as much as 7 years, no investor or a genuine buyer would like to wait for
7 years after they have booked the home and given almost 100% of the payment.
So, in a nutshell RERA was necessary to streamline the developer and to boost up the
sentiment of the buyer so that the real estate sector can revive and can be capable of facing
the tough times in the economy. RERA is implemented to look after the issues like quality
of construction, price, delays etc. RERA will forced the developer to do the business in a
disciplined manner and deliver the project on time with the said qualities. If this ACT is
implemented successfully than it can bring revolution the real estate sector and this sector
can be the driver for Indian economy.
2.2 OBJECTIVES OF THE STUDY:
India’s real estate sector has seen many stiff slumps, the major reason being the project
getting delays and the trust of buyer from developer getting fade away. On the other hand,
when developer instead of completing the project invest in land, the land prices increases
and so the price of the apartment are always high. To curb all these RERA act 2016 was
introduced in parliament. However, the prices are not stabilized even after the
implementation of the RERA act. Our study is done to recognize the loopholes that still the
developers are using to use the law in favour of them. Our study is done to know what can
be done to make this law more effective in terms of both developer and buyers. And can
this act be implemented on a wider base and more transparent India’s real estate sector has
seen many stiff slumps, the major reason being the project getting delays and the trust of
buyer from developer getting fade away. On the other hand, when developer instead of
completing the project invest in land, the land prices increases and so the price of the
apartment are always high. To curb all these RERA act 2016 was introduced in parliament.
However, the prices are not stabilized even after the implementation of the RERA act. Our
study is done to recognize the loopholes that still the developers are using to use the law in
favour of them. Our study is done to know what can be done to make this law more
effective in terms of both developer and buyers. And can this act be implemented on a
wider base and more transparency. This was indeed to make a call in favour of customers,
32
buyers, promoters and agents. The reform of the act implemented due to the economic
crisis, fraudulent activities happened in the Indian real estate sector this step was taken and
implemented in favour of customers to stop unnecessary incidents. It has been facing a lot
of problems since 2012. This could lead to decrease demand for property further. This
reduced demand is causing a slowdown in recovery of investment for builders. The RERA
act is initiated by the central as well as state government to spread awareness and bring
transparency to maintain the real estate field safe and secure. In India faulty construction
is a major problem recognized through different segments. People construct buildings due
to the hefty greed. Builders use cheap product and quick way to build with providing lesser
wages to the workers.
2.3 IMPORTANCE OF THE STUDY:
The importance of RERA research has been done. There are clauses which direct the
developer right from the planning stage of the project to the execution and the closing stage.
Developer have to open an escrow account for the project and 70% of the payment that
they have received as an instalment of the apartment, or any such unit. That amount should
only be used for the construction of that particular project. Some of the importance after
going through various journals and research of the RERA act are as follows:
1. Under this act there will be no regular forum for the buyer of real estate instead
there will be a special forum for buyer, REAL ESTATE REGULATORY
AUTHORITY, 2016 where they can file their complaint. This authority will be
commissioned within one year as soon as the act come into implementation.
2. The developer has to register their project under RERA before starting the project,
incase project is divided into different phases than each phase will consider as a
different project and have to register separately.
3. The project which does not have a land area more than 500 square meters or the
number of units does not exceed eight, does not need to register under RERA.
4. According to this act the developer has to sell apartment on carpet area and cannot
continue to sell on super- built area that include the common area, shaft, exclusive
balcony etc.
33
5. Developer has to open an escrow account in which 70% of the money of the
allottees has to deposit and that money can only be used for the construction of the
project. To withdraw the money from escrow account the developer needs a letter
from CHARTERED ACCOUNTANT, ARCHITECT, ENGINEER & the
withdrawal will be in the proportion of completion of project.
6. After the developer apply for the registration of the project, the authority in 30 days
has to reject or accept the application. If the authority failed to do this than the
project is deemed to be accepted.
7. If the developer is found to be violating any rules, or make default in doing anything
that is required to be done or is involve in any kind of unfair means than authority
has the right to revoke the application number.
8. The promoter cannot accept more than 10% of the advance payment as a token
amount for the sale of apartment, plot, as the case may be before coming into the
written agreement of the sale of the unit.
9. The promoter cannot make any addition or the alteration in the approved plan,
design, structural design etc., without taking the consent of the allottees. At least
66% of the allottees should agree to the alteration, or addition to the plan or design
than only developer can change it.
10. In case there is any structural defect, defect in the quality of workmanship,
construction and brought to the notice of developer within the five years from the
handling over the possession to the society, the developer has to rectify within thirty
days without charging any extra amount for repair works.
11. In case the developer is not able to hand over the possession of the unit on time due
to any reason than he is liable of paying the money back to the members with
interest and compensation according to the act.
12. In addition to the establishment of the Regulatory Authority, the Bill also proposes
to establish a Real Estate Appellate Tribunal (Appellate Tribunal) within one year
from the date of commencement of the Act.
13. There are various penalties for the various misconduct by the developer and even
by the buyers.
2.4 HYPOTHESIS:
34
Hypothesis plural is hypotheses is proposed explanation for a phenomenon. Hypothesis is
like a compass on a high sea to guide the voyage and like a “pole stars” which guides to
travellers on land to develop the basic ideas. Similarly, hypothesis is equally important to
a researcher in finding out an objective. It is very important for the researcher in finding
the objective of the research. Hypothesis word is derived from two words “HYPO” means
under and “THESIS” means thought. That means hypothesis is a statement or prior thought
without belief of regarding research in order to draw out its logical consequence and to
taste the facts whether it is proved or dismiss. It gives accuracy to our research work and a
direction of completion of research work. It highlights causes of problem. Taking this
hypothesis into the consideration the researcher collects the information data for thesis
from primary and secondary sources.
2.5 RESEARCH TOOLS AND TECHNIQUES:
1. Through particular books.

(A) REAL ESTATE REGULATION AND DEVELOPMENT ACT, 2016
(B) GUIDE TO RERA WITH RERA CHECK LIST
(C) GUJARAT RERA MANUAL
2. Through various legal/law journals
3. Through various articles i.e. legal and non-legal
4. Through various authorised governmental and non-governmental websites.
5. My own views.
References taken into consideration while preparing the said Research:
https://m.economictimes.com/wealth/real-estate/will-rera-impact-real-estate-
prices/articleshow/58577393.cms
http://ignited.in/p/56819
https://m.economictimes.com/wealth/real-estate/home-buyers-still-losers-as-rera-sits-on-
complaints/articleshow/66822054.cms
https://en.m.wikipedia.org/wiki/Real_Estate_(Regulation_and_Development)_Act,_2016
35
https://www.99acres.com/articles/complaints-under-rera-a-comprehensive-status-
report.html
https://www.charteredclub.com/rera/
https://www.semanticscholar.org/paper/Real-Estate-Regulation-Act-(RERA)%2C-
2016%3A-and-Issues-Joshi-Singh/dea352f16e19507921d1a4681d1ec2b464523f6d
36
CHAPTER-3 LEGAL PERSPECTIVE OF RERA ACT, 2016:
37
3.1 LEGAL VIEW OF RERA ACT IN INDIA PARTICULARLY IN
GUJARAT.28
One should have an overview of RERA Act 2016, as everyone wishes to have their own
house at some point in their life. A house is like their one time investment, where all savings
are invested to build a home out of it. No one wishes to be betrayed in their special moments
of making such big transactions. But there have been instances when buyers have been
cheated by the developers for their own profits and no proper redressal mechanism was
available to the aggrieved parties. Hence, in order to prevent the buyers from being
exploited, the Real Estate (Regulation and Development) Act 2016 was enacted.
It has been rightly stated, that RERA is an act for the regulation and promotion of real
estate sector and to restore the faith of builders in the real estate market. It ensures the sale
of land, property, apartment in an effective and transparent manner. The Act establishes
Authorities solely for dealing the matters of real estate and increase the rate of delivering
justice. It basically acts as an armour of the homebuyers in India. Speedy justice and
uniform system of regulation is the primary goal of the RERA Act. The Act also imposes
penalties and imprisonment for the defaulters.
If one is facing issues with regard to property matters or delay in possession of property,
or the refund amount is not being initiated by the builder, or the terms of the agreement are
one-sided leaning towards builders benefit, then RERA Act can come as handy for those.
This Act is completely sector specific and deals with major issues of the real estate market,
explaining what all actions can be taken in case the buyers are harassed by developer or
promoter in some or the other way.
28
RERA Gujarat – Registration Process, Rules , Fees and Charges (squareyards.com) (Accessed on 15th
September 2022, 10.45pm)
38
3.1.1 APPLICABILITY AND EXTENT OF RERA ACT, 2016
The Real Estate (Regulation and Development) Act 2016, was enacted to regulate the
immovable properties of India specifically the residential ones. The Act tries to make the
authorities answerable to the judicial bodies and people and safeguards the interests of
home buyers and give a boom to the real estate industry. The Act has further mentioned
that Real Estate Regulating Authority shall be set up in each state respectively acting as a
redressal body for adjudicating the sector specific cases.
The RERA Act was passed in March 2016, and made effective from 1 st May 2016, but the
entire Act came into force from 1st May 2017. The Act had given a mandate for every State
and Union Territory. They are-
Make the RERA Rules for particular State or Union Territory within 6 months from the
date of enactment of the Act. The Rules will mention the procedure and registration fees
for registration of properties accordingly as per the rates in their state under the RERA Act.
Further, RERA Rules will also comprise of compliances to be followed by the builders and
agents along with grievance redressal procedure for the disputes arising in the particular
state.
Notify the RERA Authority for particular state within 1 year of effective date. The RERA
Authority shall act as the RERA registration authority. It shall also be the first authority for
RERA grievance redressal mechanism. 29
The States need to constitute RERA Appellate Tribunal as appellate authority for
respective state or UT within 1 year of effective date. This RERA Appellate Tribunal will
act as the appellate authority for RERA grievances.
29
Overview of RERA Act 2016 (lawgurus.in)
39
There are certain statistics for measuring the effectiveness of implementation of
RERA in every state or union territory.
There are 30 States and Union Territories in total who have notified the rules under RERA
29 states/ UT have set up the Real Estate Regulatory Authority, 20 regular and 9 interim
22 states/ UT have set the Real Estate Regulatory Appellate Authority, 13 regular and 9
interim
The Regulatory Authorities of 24 states have even operationalized their official websites
in accordance to the provisions of RERA Act.
With the enactment of RERA, it established the standard for stringent compliance of the
provisions and rules which need to be adhered to by every builder or developer in their
area. Post the enactment of RERA, majority of the states had set up their state RERA rules
and offices along with the Regulatory Authorities and Appellate Tribunals. Even though
the Act is prospective in nature, the provisions clearly mention that every project whether
finished or under construction has to be registered with the respective State RERA by the
promoters of the company within span of 3 months from commencement of the Act.
The main objective behind passing the RERA Act was to secure the home buyers from the
harassment and fraudulent works of builders and developers. As the real estate market had
come to standstill, it was understood that there was an immediate need for a uniform
legislation to regulate the real estate matters in uniform manner. Thus, the Act is a
40
wholesome act with respect to the real estate industry as it states the information regarding
project plan, layouts, land title status, government approvals, timely completion of project,
delivery of project by builders, consent of 2/3rd of allottees in case of any alteration or
addition to the project etc. It was aimed that the Act would bring a drastic shift in the
functioning of real estate sector with more reliability and transparency. 30
Real Estate (Regulation and Development) Act 2016, consists of many provisions and
some of the primary ones are as follows-31
Establishment of Real Estate Regulatory Authority in every state or union territory for
supervising as well as adjudicating the real estate matters. These authorities have the
capacity to go for arbitration for any dispute as per the agreement of the real estate projects
in the respective state.
All the real estate projects irrespective of their completion or not, need to be registered
with their State RERA, so that the authority has jurisdiction over them. In case, any ongoing
project which begun before the enactment of the Act, and hasn’t registered itself shall not
be allowed to advertise their project until the registration is done. Moreover, the Authorities
can reject the registration of particular project, if the guidelines are not abided by the
developer or promoter.
Establishment of fast track dispute redressal mechanism by setting up Appellate Tribunal

and Adjudicating Officers in state.
If there is any default found on the part of buyer or promoter, then both will be responsible
for paying an equal rate of interest.
30
Overview of RERA Act 2016 (lawgurus.in) (Accessed on 15th September 2022, 11.30 pm)
31
Applicability of RERA Act – Retrospective or Retroactive? (taxguru.in) (Accessed on 15th September
2022, 11.35 pm)
41
For situations, where the promoter wishes to transfer or assign the majority of buyer’s
rights and liabilities in real estate project to third party, then written consent from 2/3 rd of
the allottees will be required along with the written approval of RERA.
Complaint mechanism has been introduced in case if a person has problems with regard to
violation of provisions of RERA or rules of RERA by the promoter, buyer or agent or
developer, they can file a complaint with RERA.
If the promoter causes any losses to the buyer due in case of defective title of the property
which is still under construction or has been constructed, then the promoter shall be liable
to compensate the buyer. There is no limitation given within the Act presently for
compensation amount.
When an enquiry is taking place, RERA can stop an agent, promoter or buyer from
continuing the activity against which the complaint has been raised. Basically a kind of
injunction can be imposed on the activity of the agent as per the complaint.
If the aggrieved party is not satisfied with the decision of Regulatory Authority, then the
aggrieved party can submit an appeal before the Appellate Tribunal.
If the orders of Appellate Tribunal are not complied by the party, then penalty of up to 10%
of the estimated cost of the project or imprisonment up to 3 years or both can be granted to
the defaulter.
Even in case, the promoter fails to abide the orders of RERA, they shall be liable to pay
the penalty of up to 5% of the total estimated amount of the project.
If the company commits an offence under the RERA Act, then the person in charge of the
business at the time of commission of offence along with the company will be held guilty
for the same and be punished accordingly.
No civil court shall have the jurisdiction with respect to any matter that comes under the
purview of Real Estate Regulatory Authority or the Real Estate Appellate Tribunal.
Similarly, no court is permitted to grant an injunction, with regard to any action taken by
the Regulatory Authority or the Tribunal.
42
There are numerous perks of enacting the Real Estate (Regulation and Development) Act
2016, in favour of the agent, promoter and buyer. They are-
Standardized definition of “carpet area”- before the advent of RERA, the method by which
a builder calculated price of the project was not explicitly mentioned. However, with
RERA there is now a standard formula prescribed in the Act to calculate the carpet area.
This shall bring in transparency in the property market and promoters will not be able to
provide inflated carpet areas in increased prices. 32
Lowered the risk of insolvency of builder- most of the promoters and developers have
numerous projects going on at the same time and not just one. So, prior to the Act the
developers could shift their funds raised from one project to the other one. But after RERA,
this was not possible since 70% of the funds raised need to be deposited in the separate
bank account of that project and the developer can withdraw these funds only after getting
a certification from the CA, architect or engineer. 33
Rights to buyer in case of defects- after the project is built, within 5 years of possession the
buyer encounters any structural defect or issue with the quality of the property or building,
then the builder is responsible for rectifying the damage within 30 days and all from his
own pocket.
Advance payment- as per the Rules of RERA, a builder is not permitted to take more than
10% of the cost of the project from the buyer as advance amount or booking fee or
application fees. This gives time to the buyer to source his funds faster rather than paying
a large sum at one go.
Interest to be paid in case of default- before the Act was introduced, the interest paid to the
buyer for delayed possession was much lower as compared to delayed payments made by
the buyer to the promoter. This was amended with RERA and now both the parties are on
same footing and have to pay same amount of interest.
32
RERA: Applicability of RERA Act - Legal Suvidha Blog (Accessed on 15th September 2022, 11.30 pm)
33
RERA: Applicability of RERA Act - Legal Suvidha Blog (Accessed on 15th September 2022, 11.30 pm)
43
Right to information- with RERA, the buyer has the right to information and knowledge
regarding the project and it shall include the layout, execution and completion status of
project.
Title is defective- at the time of possession, the buyer shall discover that there is defect in
the title of the property or it comes to the knowledge that someone is claiming title in the
property, then the buyer can ask for compensation from the promoter and there is no
specific limitation prescribed for the same.
Buyer’s right in case of false promises- if there is some disparity of terms of what was
promised by the builder and what was delivered, then buyer is entitled to full refund of
the amount that was paid as advance and sometimes the builder can be asked to pay
interest on the amount as well.
Grievance redressal- if the buyer, promoter or the agent has any complaints with respect
to project, they have the right to file complaint with RERA. If the party is not satisfied
with the order of Regulatory Authority, then an appeal can also be filed in the Appellate
Tribunal.
Therefore, it can be witnessed that Real Estate (Regulation and Development) Act 2016,
was required to boost the real estate sector in India; with a standard legislation for the
Real estate it will enhance the functioning of the sector and re-establish the faith in the
sector. This will not only aid people but also the economy as it contributes around 7% to
the GDP of India. The absence of regulatory authority in real estate led to its downfall,
and also exploited the home buyers to certain extent. The major problems such as delay
in possession, not refunding the advance amount with interest, one-sided terms of
agreement are very well addressed in Act. The Act also provides for dispute redressal
mechanism and penalties against the offenders. RERA Act has attempted to bring in
transparency and stability in the real estate market and it is expected that the Act will
facilitate further expansion of the same too.
3.1.2 CONCEPT OF RERA ACT, 2016
Real Estate (Regulation and Development) Act (RERA) is an act passed by the
Parliament in 2016 that came into effect fully from 1st May, 2017. It seeks to
44
protect home-buyers as well as help boost investments in the real estate sector by
bringing efficiency and transparency in the sale/purchase of real estate. The Act
establishes 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. 34
Need for the RERA
Real estate sector had been largely unregulated, no standardization of business practices
and transactions.
Prevalence of issues like delays, price, quality of construction. Delays in projects had
been a major issue plaguing real estate sector- huge cost overrun due to delays.
Numerous instances where developers cheated property buyers.
No grievance redressal mechanism.
Huge generation of black money in real estate sector.
Objectives of RERA
Enhance transparency and accountability in real estate and housing transactions.
Boost domestic and foreign investment in the real estate sector.
Provide uniform regulatory environment to ensure speedy adjudication of disputes.
Promote orderly growth through efficient project execution and standardization.
Offer single window system of clearance for real estate projects.
Empower and protect the right of home buyers.
Key Provisions of Real Estate Regulation Act: 35
Establishment of state level regulatory authorities- Real Estate Regulatory Authority

(RERA): The Act provides for State governments to establish more than Register and
maintain a database of real estate projects; publish it on its website for public viewing,
34
Introduction to RERA ACT,2016 – LexCliq (Accessed on 15th September 2022, 11.30 pm)
35
Analysis of RERA Act, 2016 - BSK Legal
45
Protection of interest of promoters, buyers and real estate agents
Development of sustainable and affordable housing,
Render advice to the government and ensure compliance with its Regulations and the Act.
Establishment of Real Estate Appellate Tribunal- Decisions of RERAs can be appealed

in these tribunals.
Mandatory Registration: All projects with plot size of minimum 500 sq.mt or eight
apartments need to be registered with Regulatory Authorities.
Deposits: Depositing 70% of the funds collected from buyers in a separate escrow bank
account for construction of that project only.
Liability: Developer’s liability to repair structural defects for five years.
Penal interest in case of default: Both promoter and buyer are liable to pay an equal rate
of interest in case of any default from either side.
Cap on Advance Payments: A promoter cannot accept more than 10% of the cost of the
plot, apartment or building as an advance payment or an application fee from a person
without first entering into an agreement for sale.
Defines Carpet Area as net usable floor area of flat. Buyers will be charged for the carpet
area and not super built-up area.
 Punishment: Imprisonment of up to three years for developers and up to one year in

case of agents and buyers for violation of orders of Appellate Tribunals and
Regulatory Authorities.
Benefits
Timely delivery of flats

Developers often make false promises about the completion date of the project, but
hardly ever deliver.
Strict regulations will be enforced on builders to ensure that construction runs on time
and flats are delivered on schedule to the buyer.
46
If the builder is not able to deliver the flats on time, he/she will have to refund the
purchaser with interest.
Furnishing of accurate project details:
In the construction stage, builders promote their projects defining the various amenities
and features that will be part of the project. But not everything goes as per plan, with
several features missing.
As per the Act, there can't be any changes to a plan.
And if a builder is found guilty of this, he/she will be penalized 10% of the project’s costs
or face jail time of up to three years. 36
Specifying Carpet Area:
Generally, builders sell flats on the basis of built-in area, which includes a common
passage area, stairs and other spaces which are 20-30% more than the actual flat’s area.
But, not all buyers are aware of the concept of carpet area.
With this Act it will become mandatory to declare the actual carpet area.
All clearances are mandatory before beginning a project:37

Builders often attract buyers with huge discounts and pre-launch offers. And, the buyer,
enticed by the offers, does not bother about the clearance.
But, due to delays in getting clearance, the buyer does not get the flat on time.
This Act ensures that developers get all the clearances before selling flats.
1. Each project should have a separate bank account:

Developers raise funds through pre-launch offers and use them to purchase some
other land or invest it in other projects.
36
RERA Act, 2016 (drishtiias.com) (Accessed on 16th September 2022, 12.20 am)
37
47
o This Act will make it compulsory that a separate bank account be maintained
for each project.
o Each transaction will have to be recorded, and diversion to another project will
not be entertained.
 After sales service:
o As per an interesting clause in the Act, if the buyer finds any structural
deficiency in the development of the building, the buyer can contact the
builder for after sales service.
o But, the buyer should approach the builder within 5 years of purchase to
rectify such defects without further charges.
Concerns
 Past real estate projects not included
o Only new projects are covered by the Act.
o Projects that are ongoing, completed or stuck due to clearance or financial

issues, don’t come under this.
o Hence, many buyers will not be benefitted by it.
 Delay from government agencies
o There can be delays caused by the government, which sometimes takes a lot of
time to clear a project.
o It is up to government bodies to timely approve projects, so that developers

can launch, complete and deliver them on time.
 No compulsory regulation for projects less than 500 square meter:
48
o Registration with the regulator will not be mandatory for projects less than 500
square meter.
o So, small developers will not be bound to register.
 New project launches expected to be delayed:38
o Because a project will not be allowed to launch without the requisite

clearances from the government (which generally takes two to three years),
projects will automatically get delayed.
 It does not deal with the concerns of developers regarding force majeure (acts of
god outside their control) which result in a shortage of labour or issues on account
of there not being a central repository of land titles/deeds.
 State governments regulated real estate before RERA as land and land improvement
are in the State List of the Seventh Schedule of the Constitution. RERA has been
enacted under Concurrent List. This has increased the tussle between various
states and Centre over implementation of RERA.
 Way Forward
 Avoiding any conflict between the Centre and the States regarding regulation of real
estate sector.
 States should not dilute the RERA provisions. Provisions for punishment of
violations, should be kept intact in all State laws.
 States should fully implement RERA to curb black money
 Issues regarding the implementation of RERA in North-Eastern States should be

resolved to avoid any uncertainty in the housing sector in that region.
38
49
 Government agencies should be made accountable for the delay in granting
approvals.
 A robust IT infrastructure should be established for monitoring projects and quick

redressal of grievances.
 All the concerns of developers should be addressed in a time-bound manner to

avoid unnecessary litigations in courts.39
3.1.2.1 CONCEPT OF RERA IN GUJARAT:
After the implementation of Real Estate (Regulation and Development) Act, 2016 major
changes can be seen and felt in the field of Real Estate. The Home Buyers who had spent
their hard earned savings in buying the property were being harassed by the errant builders,
however after Real Estate (Regulation and Development) Act, 2016 came into force, the
errant actions of the builders are put under strict vigilance. Under the Real Estate
(Regulation and Development) Act, 2016, the State government is required to establish
Real Estate regulatory authority for the regulation and promotion of the real estate sector
in the State.
 The newly born RERA has spread its wings and roots in the state of Gujarat, which
has witnessed significant changes in the field of real estate sector and topples the
list after Maharashtra and Uttar Pradesh.
 After the implementation of the RERA Act, the State of Gujarat has notified its
final Gujarat RERA Rules, 2017 on 29.10.2016 which prescribes regulation, form
and process for – RERA registration by Builders and agents; RERA authority
constitutions; Filing complaints before RERA Authorities and the Complaint
redressal system.
39
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 It is prominent to note herein that till date overall 3880 real estate projects have
been successfully registered under the Gujarat RERA and on the other hand the
Authority has issued certificates to 702 agents. By doing so the Gujarat RERA has
bagged 3rd position in the registration of the projects in between the 15 states which
has successfully implement RERA.
 That apart from the above, the Gujarat RERA has been successfully adjudicating
the grievances of the home buyers who are distressed by the immoral actions of the
builders, which has been made more easy with the launch of the web portal of
Gujarat RERA. Filing of the complaint is now an easy task which can be done by
filling an online form along the requisite fees. RERA complaint in Gujarat can be
filed before following authorities depending upon the kind of grievance.
 COMPLAINT BEFORE RERA ADJUDICATING OFFICER 40 – Any

complaint relating to claim of interest and compensation against the builder, which
is covered under section 12, 14, 18 and 19, of RERA Act, 2016, can be filed in form
‘B’ before Gujarat RERA Adjudicating officer, with a fee of Rs.1000/-, which is to
be paid online. The RERA Adjudicating officer shall, after following the prescribed
procedure, dispose the complaint within 60 days of filing. If it is not disposed in
said period, the officer shall record the reasons.
 (ii) COMPLAINT TO GUJARAT RERA AUTHORITY – All those complaints
which are related to the violation of the of the provisions of the Real Estate
(Regulation and Development) Act, 2016 and excluding the complaints filed before
the adjudication officer can be filed before the RERA authority by filing the form
‘A’ with prescribed fees of Rs. 1000/-. The RERA Authority shall, after following
the prescribed procedure, dispose the complaint within 60 days of filing. If it is not
disposed in said period, the officer shall record the reasons.
40
An overview of RERA implementation in Gujarat (centrik.in) Accessed on 16th September 2022, 12.20
am)
51
 (iii) COMPLAINT TO GUJARAT RERA TRIBUNAL – RERA tribunal is
second appellate authority. Any person aggrieved by order of RERA authority or
adjudicating officer may file complaint to Gujarat RERA tribunal in form “A”
within 60 days from the date of receipt of such order, after paying the prescribed
fees of Rs. 1000/-. The RERA Tribunal shall, after following the prescribed
procedure, dispose the complaint within 60 days of filing. If it is not disposed in
said period, the officer shall record the reasons.
 However, it is advised that the services of a professional be hired for the
adjudication of the grievance as RERA Act has very new existence in the market,
it is difficult for layman to file the complaint and get the legal remedy for their
grievances.
 It can be concluded by saying that Gujrat RERA has set a benchmark for itself to
proceed and flourish higher by resolving the issues of the aggrieved home buyers
so that it can attain the first position in the real estate sector by bringing a
remarkable revolution through its orders and rules & regulations.41
3.2 IMPORTANT SECTIONS OF RERA ACT, 2016: 42
Section 2 of Rera Act, 2016 consist of definitions which gives the basic structural idea of
this particular act which is most important not only for this particular Act but every Acts
as a whole:
Section 2: Definitions.
In this Act, unless the context otherwise requires:
(a) “adjudicating officer” means the adjudicating officer appointed under sub-section (1)
of section 71;
(b) “advertisement” means any document described or issued as advertisement through any
medium and includes any notice, circular or other documents or publicity in any form,
informing persons about a real estate project, or offering for sale of a plot, building or
41
An overview of RERA implementation in Gujarat (centrik.in) (Accessed on 16th September 2022)
42
IBC Laws - Section 2 of Real Estate (Regulation and Development) Act, 2016 (RERA): Definitions
52
apartment or inviting persons to purchase in any manner such plot, building or apartment
or to make advances or deposits for such purposes;
(c) “agreement for sale” means an agreement entered into between the promoter and the
allottee;
(d) “allottee” in relation to a real estate project, means the person to whom a plot, apartment
or building, as the case may be, has been allotted, sold (whether as freehold or leasehold)
or otherwise transferred by the promoter, and includes the person who subsequently
acquires the said allotment through sale, transfer or otherwise but does not include a person
to whom such plot, apartment or building, as the case may be, is given on rent;
(e) “apartment” whether called block, chamber, dwelling unit, flat, office, showroom, shop,
godown, premises, suit, tenement, unit or by any other name, means a separate and self-
contained part of any immovable property, including one or more rooms or enclosed
spaces, located on one or more floors or any part thereof, in a building or on a plot of land,
used or intended to be used for any residential or commercial use such as residence, office,
shop, showroom or godown or for carrying on any business, occupation, profession or
trade, or for any other type of use ancillary to the purpose specified;
(f) “Appellate Tribunal ” means the Real Estate Appellate Tribunal established under
section 43;
(g) “appropriate Government” means in respect of matters relating to,—
(i) the Union territory without Legislature, the Central Government;
(ii) the Union territory of 1[Pondicherry and Union territory of Jammu and Kashmir], the
Union territory Government;
(iii) the Union territory of Delhi, the Central Ministry of Urban Development;
(iv) the State, the State Government;
(h) “Architect” means a person registered as an architect under the provisions of the
Architects Act, 1972;
53
(i) “Authority” means the Real Estate Regulatory Authority established under sub-section
(1) of section 20;
(j) “building” includes any structure or erection or part of a structure or erection which is
intended to be used for residential, commercial or for the purpose of any business,
occupation, profession or trade, or for any other related purposes;
(k) “carpet area”43 means the net usable floor area of an apartment, excluding the area
covered by the external walls, areas under services shafts, exclusive balcony or verandah
area and exclusive open terrace area, but includes the area covered by the internal partition
walls of the apartment.
Explanation — For the purpose of this clause, the expression “exclusive balcony or
verandah area” means the area of the balcony or verandah, as the case may be, which is
appurtenant to the net usable floor area of an apartment, meant for the exclusive use of the
allottee; and “exclusive open terrace area” means the area of open terrace which is
appurtenant to the net usable floor area of an apartment, meant for the exclusive use of the
allottee;
(l) “Chairperson” means the Chairperson of the Real Estate Regulatory Authority
appointed under section 21;
(m) “commencement certificate” means the commencement certificate or the building

permit or the construction permit, by whatever name called issued by the competent
authority to allow or permit the promoter to begin development works on an immovable
property, as per the sanctioned plan;
(n) “common areas” mean—
(i) the entire land for the real estate project or where the project is developed in phases and
registration under this Act is sought for a phase, the entire land for that phase;
(ii) the stair cases, lifts, staircase and lift lobbies, fire escapes, and common entrances and
exits of buildings;
43
54
(iii) the common basements, terraces, parks, play areas, open parking areas and common
storage spaces;
(iv) the premises for the lodging of persons employed for the management of the property
including accommodation for watch and ward staffs or for the lodging of community
service personnel;
(v) installations of central services such as electricity, gas, water and sanitation, air-
conditioning and incinerating, system for water conservation and renewable energy;
(vi) the water tanks, sumps, motors, fans, compressors, ducts and all apparatus connected
with installations for common use;
(vii) all community and commercial facilities as provided in the real estate project;
(viii) all other portion of the project necessary or convenient for its maintenance, safety,
etc., and in common use;
(o) “company” means a company incorporated and registered under the Companies Act,
2013 and includes,—
(i) a corporation established by or under any Central Act or State Act;
(ii) a development authority or any public authority established by the Government in this
behalf under any law for the time being in force;44
(p) “competent authority” means the local authority or any authority created or established
under any law for the time being in force by the appropriate Government which exercises
authority over land under its jurisdiction, and has powers to give permission for
development of such immovable property;
(q) “completion certificate” means the completion certificate, or such other certificate, by
whatever name called, issued by the competent authority certifying that the real estate
project has been developed according to the sanctioned plan, layout plan and specifications,
as approved by the competent authority under the local laws;
44
55
(r) “day” means the working day, in the concerned State or Union territory, as the case may
be, notified by the appropriate Government from time to time;
(s) “development” with its grammatical variations and cognate expressions, means
carrying out the development of immovable property, engineering or other operations in,
on, over or under the land or the making of any material change in any immovable property
or land and includes re-development;
(t) “development works” means the external development works and internal development
works on immovable property;
(u) “engineer” means a person who possesses a bachelor’s degree or equivalent from an
institution recognised by the All India Council of Technical Education or any University
or any institution recognised under a law or is registered as an engineer under any law for
the time being in force;
(v) “estimated cost of real estate project” means the total cost involved in developing the
real estate project and includes the land cost, taxes, cess, development and other charges;
(w) “external development works” includes roads and road systems landscaping, water
supply, sewerage and drainage systems, electricity supply transformer, sub-station, solid
waste management and disposal or any other work which may have to be executed in the
periphery of, or outside, a project for its benefit, as may be provided under the local laws;
(x) “family” includes husband, wife, minor son and unmarried daughter wholly dependent
on a person;
(y) “garage” means a place within a project having a roof and walls on three sides for
parking any vehicle, but does not include an unenclosed or uncovered parking space such
as open parking areas;
(z) “immovable property” includes land, buildings, rights of ways, lights or any other
benefit arising out of land and things attached to the earth or permanently fastened to
anything which is attached to the earth, but not standing timber, standing crops or grass;
(za) “interest” means the rates of interest payable by the promoter or the allottee, as the
case may be.
56
Explanation.—For the purpose of this clause—
(i) the rate of interest chargeable from the allottee by the promoter, in case of default, shall
be equal to the rate of interest which the promoter shall be liable to pay the allottee, in case
of default;
(ii) the interest payable by the promoter to the allottee shall be from the date the promoter
received the amount or any part thereof till the date the amount or part thereof and interest
thereon is refunded, and the interest payable by the allottee to the promoter shall be from
the date the allottee defaults in payment to the promoter till the date it is paid;
(zb) “internal development works”45 means roads, footpaths, water supply, sewers, drains,
parks, tree planting, street lighting, provision for community buildings and for treatment
and disposal of sewage and sullage water, solid waste management and disposal, water
conservation, energy management, fire protection and fire safety requirements, social
infrastructure such as education health and other public amenities or any other work in a
project for its benefit, as per sanctioned plans;
(zc) “local authority” means the Municipal Corporation or Municipality or Panchayats or

any other Local Body constituted under any law for the time being in force for providing
municipal services or basic services, as the case may be, in respect of areas under its
jurisdiction;
(zd) “Member” means the member of the Real Estate Regulatory Authority appointed
under section 21 and includes the Chairperson;
(ze) “notification” means a notification published in the Official Gazette and the expression
“notify” shall be construed accordingly;
(zf) “occupancy certificate” means the occupancy certificate, or such other certificate by
whatever name called, issued by the competent authority permitting occupation of any
45
(Accessed on 16th September, 12.00 pm)
57
building, as provided under local laws, which has provision for civic infrastructure such as
water, sanitation and electricity;
(zg) “Person”46 includes,—
(i) an individual;
(ii) a Hindu undivided family;
(iii) a company;
(iv) a firm under the Indian Partnership Act, 1932 or the Limited Liability Partnership Act,
2008, as the case may be;
(v) a competent authority;
(vi) an association of persons or a body of individuals whether incorporated or not;
(vii) a co-operative society registered under any law relating to co-operative societies;
(viii) any such other entity as the appropriate Government may, by notification, specify in
this behalf;
(zh) “planning area” means a planning area or a development area or a local planning area
or a regional development plan area, by whatever name called, or any other area specified
as such by the appropriate Government or any competent authority and includes any area
designated by the appropriate Government or the competent authority to be a planning area
for future planned development, under the law relating to Town and Country Planning for
the time being in force and as revised from time to time;
(zi) “prescribed” means prescribed by rules made under this Act;
(zj) “project” means the real estate project as defined in clause (zn);
(zk) “promoter” means,—
46
58
(i) a person who constructs or causes to be constructed an independent building or a
building consisting of apartments, or converts an existing building or a part thereof into
apartments, for the purpose of selling all or some of the apartments to other persons and
includes his assignees; or
(ii) a person who develops land into a project, whether or not the person also constructs
structures on any of the plots, for the purpose of selling to other persons all or some of the
plots in the said project, whether with or without structures thereon; or 47
(iii) any development authority or any other public body in respect of allottees of—
(a) buildings or apartments, as the case may be, constructed by such authority or body on
lands owned by them or placed at their disposal by the Government; or
(b) plots owned by such authority or body or placed at their disposal by the Government,
for the purpose of selling all or some of the apartments or plots; or
(iv) an apex State level co-operative housing finance society and a primary co-operative
housing society which constructs apartments or buildings for its Members or in respect of
the allottees of such apartments or buildings; or
(v) any other person who acts himself as a builder, coloniser, contractor, developer, estate
developer or by any other name or claims to be acting as the holder of a power of attorney
from the owner of the land on which the building or apartment is constructed or plot is
developed for sale; or
(vi) such other person who constructs any building or apartment for sale to the general
public.
Explanation.—For the purposes of this clause, where the person who constructs or converts
a building into apartments or develops a plot for sale and the person who sells apartments
or plots are different person, both of them shall be deemed to be the promoters and shall
47
59
be jointly liable as such for the functions and responsibilities specified, under this Act or
the rules and regulations made thereunder;
(zl) “prospectus” means any document described or issued as a prospectus or any notice,
circular, or other document offering for sale of any real estate project or inviting any person
to make advances or deposits for such purposes;
(zm) “real estate agent” 48means any person, who negotiates or acts on behalf of one person
in a transaction of transfer of his plot, apartment or building, as the case may be, in a real
estate project, by way of sale, with another person or transfer of plot, apartment or building,
as the case may be, of any other person to him and receives remuneration or fees or any
other charges for his services whether as a commission or otherwise and includes a person
who introduces, through any medium, prospective buyers and sellers to each other for
negotiation for sale or purchase of plot, apartment or building, as the case may be, and
includes property dealers, brokers, middlemen by whatever name called;
(zn) “real estate project” means the development of a building or a building consisting of
apartments, or converting an existing building or a part thereof into apartments, or the
development of land into plots or apartments, as the case may be, for the purpose of selling
all or some of the said apartments or plots or building, as the case may be, and includes the
common areas, the development works, all improvements and structures thereon, and all
easement, rights and appurtenances belonging thereto;
(zo) “regulations” means the regulations made by the Authority under this Act;
(zp) “rule” means the rules made under this Act by the appropriate Government;
(zq) “sanctioned plan” means the site plan, building plan, service plan, parking and
circulation plan, landscape plan, layout plan, zoning plan and such other plan and includes
structural designs, if applicable, permissions such as environment permission and such
other permissions, which are approved by the competent authority prior to start of a real
estate project;
48
60
(zr) words and expressions used herein but not defined in this Act and defined in any law
for the time being in force or in the municipal laws or such other relevant laws of the
appropriate Government shall have the same meanings respectively assigned to them in
those laws.
SECTION- 4: Application for Registration of Real Estate Projects:49
1) Every promoter shall make an application to the Authority for registration of the real
estate project in such form, manner, within such time and accompanied by such fee as may
be 1[prescribed].
(2) The promoter shall enclose the following documents along with the application referred
to in sub-section (1), namely:—
(a) a brief details of his enterprise including its name, registered address, type of enterprise
(proprietorship, societies, partnership, companies, competent authority), and the particulars
of registration, and the names and photographs of the promoter;
(b) a brief detail of the projects launched by him, in the past five years, whether already
completed or being developed, as the case may be, including the current status of the said
projects, any delay in its completion, details of cases pending, details of type of land and
payments pending;
(c) an authenticated copy of the approvals and commencement certificate from the
competent authority obtained in accordance with the laws as may be applicable for the real
estate project mentioned in the application, and where the project is proposed to be
developed in phases, an authenticated copy of the approvals and commencement certificate
from the competent authority for each of such phases;
(d) the sanctioned plan, layout plan and specifications of the proposed project or the phase
thereof, and the whole project as sanctioned by the competent authority;
49
Section 4 of RERA 2016 |Application for registration of real estate projects (aaptaxlaw.com) (Accessed
on 16th September, 12.00 pm)
61
(e) the plan of development works to be executed in the proposed project and the proposed
facilities to be provided thereof including fire fighting facilities, drinking water facilities,
emergency evacuation services, use of renewable energy;
(f) the location details of the project, with clear demarcation of land dedicated for the
project along with its boundaries including the latitude and longitude of the end points of
the project;
(g) proforma of the allotment letter, agreement for sale, and the conveyance deed proposed
to be signed with the allottees;
(h) the number, type and the carpet area of apartments for sale in the project along with the
area of the exclusive balcony or verandah areas and the exclusive open terrace areas
appurtenant with the apartment, if any;
(i) the number and area of garage for sale in the project;
(j) the names and addresses of his real estate agents, if any, for the proposed project;
(k) the names and addresses of the contractors, architect, structural engineer, if any and
other persons concerned with the development of the proposed project;
(l) a declaration, supported by an affidavit, which shall be signed by the promoter or any
person authorised by the promoter, stating:—
(A) that he has a legal title to the land on which the development is proposed along with
legally valid documents with authentication of such title, if such land is owned by another
person;
(B) that the land is free from all encumbrances, or as the case may be details of the
encumbrances on such land including any rights, title, interest or name of any party in or
over such land along with details;50
(C) the time period within which he undertakes to complete the project or phase thereof, as
the case may be;
50
Section 4 of RERA 2016 |Application for registration of real estate projects (aaptaxlaw.com) (Accessed
on 16th September, 12.00 pm)
62
(D) that seventy per cent. of the amounts realised for the real estate project from the
allottees, from time to time, shall be deposited in a separate account to be maintained in a
scheduled bank to cover the cost of construction and the land cost and shall be used only
for that purpose:
Provided that the promoter shall withdraw the amounts from the separate account, to cover
the cost of the project, in proportion to the percentage of completion of the project:
Provided further that the amounts from the separate account shall be withdrawn by the
promoter after it is certified by an engineer, an architect and a chartered accountant in
practice that the withdrawal is in proportion to the percentage of completion of the project:
Provided also that the promoter shall get his accounts audited within six months after the
end of every financial year by a chartered accountant in practice, and shall produce a
statement of accounts duly certified and signed by such chartered accountant and it shall
be verified during the audit that the amounts collected for a particular project have been
utilised for that project and the withdrawal has been in compliance with the proportion to
the percentage of completion of the project.
Explanation.— For the purpose of this clause, the term “scheduled bank” means a bank
included in the Second Schedule to the Reserve Bank of India Act, 1934;
(E) that he shall take all the pending approvals on time, from the competent authorities;
(F) that he has furnished such other documents as may be prescribed by the rules or
regulations made under this Act; and
(m) such other information and documents as may be prescribed.
(3) The Authority shall operationalize a web based online system for submitting
applications for registration of projects within a period of one year from the date of its
establishment.51
SECTION- 5: Granting of Registration by the Authority
51
IBC Laws - Section 4 of Real Estate (Regulation and Development) Act, 2016 (RERA): Application for
registration of real estate projects (Accessed on 16th September 2022, 1.30pm)
63
(1) On receipt of the application under sub-section (1) of section 4, the Authority shall
within a period of thirty days.
(a) grant registration subject to the provisions of this Act and the rules and regulations
made thereunder, and provide a registration number, including a Login Id and password to
the applicant for accessing the website of the Authority and to create his web page and to
fill therein the details of the proposed project; or
(b) reject the application for reasons to be recorded in writing, if such application does not
conform to the provisions of this Act or the rules or regulations made thereunder:
Provided that no application shall be rejected unless the applicant has been given an
opportunity of being heard in the matter.
(2) If the Authority fails to grant the registration or reject the application, as the case may
be, as provided under sub-section (1), the project shall be deemed to have been registered,
and the Authority shall within a period of seven days of the expiry of the said period of
thirty days specified under sub-section (1), provide a registration number and a Login Id
and password to the promoter for accessing the website of the Authority and to create his
web page and to fill therein the details of the proposed project.
(3) The registration granted under this section shall be valid for a period declared by the
promoter under sub-clause (C) of clause (l) of sub-section (2) of section 4 for completion
of the project or phase thereof, as the case may be. 52
SECTION- 6: Extension of Registration
The registration granted under section 5 may be extended by the Authority on an

application made by the promoter due to force majeure, in such form and on payment of
such fee as may be 1[prescribed]:
52
IBC Laws - Section 5 of Real Estate (Regulation and Development) Act, 2016 (RERA): Grant of
registration (Accessed on 16th September 2022, 1.40pm)
64
Provided that the Authority may in reasonable circumstances, without default on the part
of the promoter, based on the facts of each case, and for reasons to be recorded in writing,
extend the registration granted to a project for such time as it considers necessary, which
shall, in aggregate, not exceed a period of one year:
Provided further that no application for extension of registration shall be rejected unless
the applicant has been given an opportunity of being heard in the matter.
Explanation.— For the purpose of this section, the expression “force majeure” shall mean
a case of war, flood, drought, fire, cyclone, earthquake or any other calamity caused by
nature affecting the regular development of the real estate project.53
SECTION-7: Revocation of Registration
(1) The Authority may, on receipt of a complaint or suo motu in this behalf or on the
recommendation of the competent authority, revoke the registration granted under section
5, after being satisfied that—
(a) the promoter makes default in doing anything required by or under this Act or the rules
or the regulations made thereunder;
(b) the promoter violates any of the terms or conditions of the approval given by the
competent authority;
(c) the promoter is involved in any kind of unfair practice or irregularities.
Explanation.—For the purposes of this clause, the term “unfair practice means” a practice
which, for the purpose of promoting the sale or development of any real estate project
adopts any unfair method or unfair or deceptive practice including any of the following
practices, namely:—
(A) the practice of making any statement, whether in writing or by visible representation
which,—
53
IBC Laws - Section 6 of Real Estate (Regulation and Development) Act, 2016 (RERA): Extension of
65
(i) falsely represents that the services are of a particular standard or grade;
(ii) represents that the promoter has approval or affiliation which such promoter does not
have;
(iii) makes a false or misleading representation concerning the services;
(B) the promoter permits the publication of any advertisement or prospectus whether in
any newspaper or otherwise of services that are not intended to be offered;
(d) the promoter indulges in any fraudulent practices.
(2) The registration granted to the promoter under section 5 shall not be revoked unless the
Authority has given to the promoter not less than thirty days notice, in writing, stating the
grounds on which it is proposed to revoke the registration, and has considered any cause
shown by the promoter within the period of that notice against the proposed revocation.
(3) The Authority may, instead of revoking the registration under sub-section (1), permit it
to remain in force subject to such further terms and conditions as it thinks fit to impose in
the interest of the allottees, and any such terms and conditions so imposed shall be binding
upon the promoter.
(4) The Authority, upon the revocation of the registration,—
(a) shall debar the promoter from accessing its website in relation to that project and specify
his name in the list of defaulters and display his photograph on its website and also inform
the other Real Estate Regulatory Authority in other States and Union territories about such
revocation or registration;
(b) shall facilitate the remaining development works to be carried out in accordance with
the provisions of section 8;
(c) shall direct the bank holding the project bank account, specified under sub-clause (D)
of clause (l) of sub-section (2) of section 4, to freeze the account, and thereafter take such
further necessary actions, including consequent de-freezing of the said account, towards
facilitating the remaining development works in accordance with the provisions of section
8;
66
(d) may, to protect the interest of allottees or in the public interest, issue such directions as
it may deem necessary. 54
SECTION-8: Lapse on the Revocation of Registration
Upon lapse of the registration or on revocation of the registration under this Act, the
Authority, may consult the appropriate Government to take such action as it may deem fit
including the carrying out of the remaining development works by competent authority or
by the association of allottees or in any other manner, as may be determined by the
Authority:
Provided that no direction, decision or order of the Authority under this section shall take
effect until the expiry of the period of appeal provided under the provisions of this Act:
Provided further that in case of revocation of registration of a project under this Act, the
association of allottees shall have the first right of refusal for carrying out of the
remaining development works.55
SECTION-9: Registration of Real Estate Agents
(1) No real estate agent shall facilitate the sale or purchase of or act on behalf of any
person to facilitate the sale or purchase of any plot, apartment or building, as the case
may be, in a real estate project or part of it, being the part of the real estate project
registered under section 3, being sold by the promoter in any planning area, without
obtaining registration under this section.
(2) Every real estate agent shall make an application to the Authority for registration in
such form, manner, within such time and accompanied by such fee and documents as
may be prescribed.
54
IBC Laws - Section 7 of Real Estate (Regulation and Development) Act, 2016 (RERA): Revocation of
55
Section 8 of RERA 2016 |Obligation of Authority consequent upon lapse of or on revocation of
registration (aaptaxlaw.com) (Accessed on 16th September 2022, 2.00pm)
67
(3) The Authority shall, within such period, in such manner and upon satisfying itself of
the fulfillment of such conditions, as may be prescribed-
(a) grant a single registration to the real estate agent for the entire State of Union
territory, as the case may be;
(b) reject the application for reasons to be recorded in writing, if such application does not
conform to the provisions of the Act or the rules or regulations made thereunder: Provided
that no application shall be rejected unless the applicant has been given an opportunity of
being heard in the matter.
(4) Whereon the completion of the period specified under sub-section (3), if the applicant
does not receive any communication about the deficiencies in his application or the
rejection of his application, he shall be deemed to have been registered.
(5) Every real estate agent who is registered as per the provisions of this Act or the rules
and regulations made thereunder, shall be granted a registration number by the Authority,
which shall be quoted by the real estate agent in every sale facilitated by him under this
Act.
(6) Every registration shall be valid for such period as may be prescribed, and shall be
renewable for a period in such manner and on payment of such fee as may be prescribed.
(7) Where any real estate agent who has been granted registration under this Act commits
breach of any of the conditions thereof or any other terms and conditions specified under
this Act or any rules or regulations made thereunder, or where the Authority is satisified
that such registration has been secured by the real estate agent through misrepresentation
or fraud, the Authority may, without prejudice to any other provisions under this Act,
revoke the registration or suspend the same for such period as it thinks fit:
Provided that no such revocation or suspension shall be made by the Authority unless an
opportunity of being heard has been given to the real estate agent.56
56
Section 9: The RERA 2016 - Kanoonirai.com (Accessed on 16th September 2022, 2.15pm)
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SECTION-12: Obligations of Promoter regarding veracity of the
Advertisement or Prospectus
Where any person makes an advance or a deposit on the basis of the information contained
in the notice advertisement or prospectus, or on the basis of any model apartment, plot or
building, as the case may be, and sustains any loss or damage by reason of any incorrect,
false statement included therein, he shall be compensated by the promoter in the manner
as provided under this Act:
Provided that if the person affected by such incorrect, false statement contained in the
notice, advertisement or prospectus, or the model apartment, plot or building, as the case
may be, intends to withdraw from the proposed project, he shall be returned his entire
investment along with interest at such rate as may be prescribed and the compensation in
the manner provided under this Act
Scope of section 12
Section 12 provides a remedy to the buyer if he has been deceived by the builder. If the
builder made a false promise, prepared frivolous prospectus or advertisement about his
apartment, building or plots then he shall return entire investment of the buyer along with
interest.
Deception from the builder or promoter57
Deception is the ground for invoking section 12 of the RERA. The promoter may deceive
the buyer in any of these ways:
1. Giving incorrect information towards the real estate project,
2. Making false statement
3. Exhibiting a false model apartment or flat
Section 19 of RERA gives some rights to the buyer. The buyer has the right to get true
information about the sanctioned plan, approval, layout etc. If promoter gives false
57
False Advertisement by Builder and Return of the Allottee's Money - Redlaw Legal Services | A Law Firm
(Accessed on 16th September 2022, 2.20pm)
69
information about the project the buyer can claim refund of money. The buyer can claim
refund under section 12 & 18 of RERA. Both sections are giving same right but grounds
for claiming refund are different.
Section 12 gives right to claim on the ground of deception where Section 18 gives the same
right on the basis of delay in giving possession. When element of deception, fraud, false
information, inducement by making false promise exist the buyer can claim under section
12 to refund the advance or booking amount.
Return of entire investment along with the interest
The buyer has a right to claim the whole investment along with the interest at such rate as
prescribed under the RERA. Buyer sustains loss or damages if the builder gives false
statement or incorrect information regarding the building or apartment. It is in the interest
of buyer to give him an option to withdraw from such project and get entire investment
along with interest. Consequently, section 12 of the RERA Act effectively protects the
interest of buyer. 58
SECTION-20: "Establishment and incorporation of Real Estate

Regulatory Authority" - The Real Estate (Regulation and Development
Act, 2016)
(1) The appropriate Government shall, within a period of one year from the date of coming
into force of this Act, by notification, establish an Authority to be known as the Real Estate
Regulatory Authority to exercise the powers conferred on it and to perform the functions
assigned to it under this Act:
Provided that the appropriate Government of two or more States or Union territories may,
if it deems fit, establish one single Authority:
58
Section 12: The RERA 2016 | Return of entire investement - Kanoonirai (Accessed on 16th September
2022)
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Provided further that, the appropriate Government may, if it deems fit, establish more than
one Authority in a State or Union territory, as the case may be:
Provided also that until the establishment of a Regulatory Authority under this section, the
appropriate Government shall, by order, designate any Regulatory Authority or any officer
preferably the Secretary of the department dealing with Housing, as the Regulatory
Authority for the purposes under this Act:
Provided also that after the establishment of the Regulatory Authority, all applications,
complaints or cases pending with the Regulatory Authority designated, shall stand
transferred to the Regulatory Authority so established and shall be heard from the stage
such applications, complaints or cases are transferred.
(2) The Authority shall be a body corporate by the name aforesaid having perpetual
succession and a common seal, with the power, subject to the provisions of this Act, to
acquire, hold and dispose of property, both movable and immovable, and to contract, and
shall, by the said name, sue or be sued. 59
SECTION-41: "Establishment of Central Advisory Council" - The Real

Estate (Regulation and Development Act, 2016)
(1)The Central Government may, by notification, establish with effect from such date as it
may specify in such notification, a Council to be known as the Central Advisory Council.
(2) The Minister to the Government of India in charge of the Ministry of the Central
Government dealing with Housing shall be the ex officio Chairperson of the Central
Advisory Council.
(3) The Central Advisory Council shall consist of representatives of the Ministry of
Finance, Ministry of Industry and Commerce, Ministry of Urban Development, Ministry
59
Section 20 of RERA 2016 |Establishment and incorporation of Real Estate Regulatory Authority
(aaptaxlaw.com) (Accessed on 16th September 2022)
71
of Consumer Affairs, Ministry of Corporate Affairs, Ministry of Law and Justice, Niti
Aayog, National Housing Bank, Housing and Urban Development Corporation, five
representatives of State Governments to be selected by rotation, five representatives of
the Real Estate Regulatory Authorities to be selected by rotation, and any other Central
Government department as notified.
(4) The Central Advisory Council shall also consist of not more than ten members to
represent the interests of real estate industry, consumers, real estate agents, construction
labourers, non-governmental organisations and academic and research bodies in the real
estate sector.60
SECTION-42:"Functions of Central Advisory Council" - The Real

Estate (Regulation and Development Act, 2016)
(1) The functions of the Central Advisory Council shall be to advise and recommend the
Central Government,-
(a) on all matters concerning the implementation of this Act;
(b) on major questions of policy;
(c) towards protection of consumer interest;
(d) to foster the growth and development of the real estate sector;
(e) on any other matter as may be assigned to it by the Central Government.
(2)The Central Government may specify the rules to give effect to the recommendations
of the Central Advisory Council on matters as provided under sub-section (1).61
60
Section 41 of RERA 2016 |Establishment of Central Advisory Council (aaptaxlaw.com) (Accessed on 16th
September 2022, 2.34pm)
61
Section 42 of RERA 2016 |Functions of Central Advisory Council (aaptaxlaw.com) (Accessed on 16th
September 2022)
72
SECTION-43: "Establishment of Real Estate Appellate Tribunal" - The
Real Estate (Regulation and Development Act, 2016)
(1) The appropriate Government shall, within a period of one year from the date of coming
into force of this Act, by notification, establish an Appellate Tribunal to be known as the -
(name of the State/Union territory) Real Estate Appellate Tribunal.
(2) The appropriate Government may, if it deems necessary, establish one or more benches
of the Appellate Tribunal, for various jurisdictions, in the State or Union territory, as the
case may be.
(3) Every bench of the Appellate Tribunal shall consist of at least one Judicial Member and
one Administrative to Technical Member.
(4) The appropriate Government of two or more States or Union territories may, if it deems
fit, establish one single Appellate Tribunal:
Provided that, until the establishment of an Appellate Tribunal under this section, the
appropriate Government shall designate, by order, any Appellate Tribunal Functioning
under any law for the time being in force, to be the Appellate Tribunal to hear appeals
under the Act:
Provided further that after the Appellate Tribunal under this section is established, all
matters pending with the Appellate Tribunal designated to hear appeals, shall stand
transferred to the Appellate Tribunal so established and shall be heard from the stage such
appeal is transferred.
(5) Any person aggrieved by any direction or decision or order made by the Authority or
by an adjudicating officer under this Act may prefer an appeal before the Appellate
Tribunal having jurisdiction over the matter:
Provided that where a promoter files an appeal with the Appellate Tribunal, it shall not be
entertained, without the promoter first having deposited with the Appellate Tribunal at least
73
thirty per cent. of the penalty, or such higher percentage as may be determined by the
Appellate Tribunal, or the total amount to be paid to the allottee including interest and
compensation imposed on him, if any, or with both, as the case may be, before the said
appeal is heard.62
Explanation.-For the purpose of this sub-section "person" shall include the association of
allottees or any voluntary consumer association registered under any law for the time being
in force.
SECTION-44: "Application for settlement of disputes and appeals to

Appellate Tribunal" - The Real Estate (Regulation and Development
Act, 2016)
(1) The appropriate Government or the competent authority or any person aggrieved by
any direction or order or decision of the Authority or the adjudicating officer may prefer
an appeal to the Appellate Tribunal.
(2) Every appeal made under sub-section (1) shall be preferred within a period of sixty
days from the date on which a copy of the direction or order or decision made by the
Authority or the adjudicating officer is received by the appropriate Government or the
competent authority or the aggrieved person and it shall be in such form and accompanied
by such fee, as may be prescribed:
Provided that the Appellate Tribunal may entertain any appeal after the expiry of sixty days
if it is satisfied that there was sufficient cause for not filling it within that period.
(3) On receipt of an appeal under sub-section (1), the Appellate Tribunal may after giving
the parties an opportunity of being heard, pass such orders, including interim orders, as it
thinks fit.
62
Section 43 of RERA 2016 |Establishment of Real Estate Appellate Tribunal (aaptaxlaw.com) (Accessed
on 17th September 2022, 9.30 pm)
74
(4) The Appellate Tribunal shall send a copy of every order made by it to the parties and
to the Authority or the adjudicating officer, as the case may be.
(5) The appeal preferred under sub-section (1), shall be dealt with by it as expeditiously as
possible and endeavour shall be made by it to dispose of the appeal within a period of sixty
days from the date of receipt of appeal:
Provided that where any such appeal could not be disposed of within the said period of
sixty days, the Appellate Tribunal shall record its reasons in writing for not disposing of
the appeal within that period.
(6) The Appellate Tribunal may, for the purpose of examining the legality or propriety or
correctness of any order or decision of the Authority or the adjudicating officer, on its own
motion or otherwise, call for the records relevant to deposing of such appeal and make such
orders as it thinks fit.63
SECTION-46: Qualifications for appointment of Chairperson and

Members.
(1) A person shall not be qualified for appointment as the Chairperson or a Member of the
Appellate Tribunal unless he,—
(a) in the case of Chairperson, is or has been a Judge of a High Court; and
(b) in the case of a Judicial Member he has held a judicial office in the territory of India
for at least fifteen years or has been a member of the Indian Legal Service and has held the
post of Additional Secretary of that service or any equivalent post, or has been an advocate
for at least twenty years with experience in dealing with real estate matters; and
(c) in the case of a Technical or Administrative Member, he is a person who is well-versed

in the field of urban development, housing, real estate development, infrastructure,
economics, planning, law, commerce, accountancy, industry, management, public affairs
63
Section 44 of RERA 2016 |Application for settlement of disputes and appeals to Appellate Tribunal
(aaptaxlaw.com) (Accessed on 17th September 2022, 9.50 pm)
75
or administration and possesses experience of at least twenty years in the field or who has
held the post in the Central Government, or a State Government equivalent to the post of
Additional Secretary to the Government of India or an equivalent post in the Central
Government or an equivalent post in the State Government.
(2) The Chairperson of the Appellate Tribunal shall be appointed by the appropriate
Government in consultation with the Chief Justice of High Court or his nominee.
(3) The judicial Members and Technical or Administrative Members of the Appellate
Tribunal shall be appointed by the appropriate Government on the recommendations of a
Selection Committee consisting of the Chief Justice of the High Court or his nominee, the
Secretary of the Department handling Housing and the Law Secretary and in such manner
as may be prescribed.64
SECTION-47: Term of office of Chairperson and Members.

(1) The Chairperson of the Appellate Tribunal or a Member of the Appellate Tribunal shall
hold office, as such for a term not exceeding five years from the date on which he enters
upon his office, but shall not be eligible for re-appointment :
Provided that in case a person, who is or has been a Judge of a High Court, has been
appointed as Chairperson of the Tribunal, he shall not hold office after he has attained the
age of sixty-seven years :
Provided further that no Judicial Member or Technical or Administrative Member shall
hold office after he has attained the age of sixty-five years.
(2) Before appointing any person as Chairperson or Member, the appropriate Government
shall satisfy itself that the person does not have any such financial or other interest, as is
likely to affect prejudicially his functions as such member. 65
3.3 Property Registration in Gujarat under RERA Act, 2016
64
IBC Laws - Section 46 of Real Estate (Regulation and Development) Act, 2016 (RERA): Qualifications for
appointment of Chairperson and Members (Accessed on 17th September 2022, 10.00pm)
65
RERA Act | RERA Bare Act | RERA Full Text (reralaws.com) (Accessed on 17th September 2022, 10.10
pm)
76
All commercial and residential real estate projects will have to register except in projects
where
Area of land proposed to be developed does not exceed five hundred square meters
Number of apartments proposed to be developed does not exceed eight inclusive of all
phases
Promoter has received completion certificate for a real estate project prior to
commencement of this Act
For the purpose of renovation or repair or re-development which does not involve
marketing, advertising selling or new allotment of any apartment, plot or building under the
real estate project
No promoter shall advertise, market, book, sell or offer for sale, or invite persons to
purchase in any manner any plot, apartment or building, as the case may be, in any real
estate project or part of it, in any planning area within Gujarat, without registering the real
estate project with the Gujarat Real Estate Regulatory Authority(GUJRERA). Promoter of
ongoing real estate projects, in which all buildings as per sanctioned plan have not received
Completion Certificate, shall also be required to be registered for such phase of the project
which consists of buildings not having occupation or completion certificate.
If any promoter fails to register as per Act, he shall be liable to a penalty which may extend
up to ten per cent of the estimated cost of the real estate project. On continued violation,
he shall be punishable with imprisonment for a term which may extend up to three years or
with fine which may extend up to a further ten per cent of the estimated cost of the real
estate project, or with both.
Apart from Registration, the promoters shall be required to provide quarterly updates on
the status of the project to the authority
77
Project Registration Application Process:66 Step 1: The promoter User clicks on the
Login link on the Home Page and then enters the Login ID and Password for accessing
the Promoter Dashboard
Step 2: The promoter then clicks on the Apply Button (highlighted in (yellow tabs) on the
right side of the Dashboard screen for which Project application is to be initiated.
Promoter Detail67
Step 3: The Project application form is open for registration. The First screen of the
application form is the Promoter Detail page. Promoter must select the Radio button
(YES/NO) for the external landowner and if Promoter selects “YES”, then he must enter
the PAN No. of the landowner and click on search button. By clicking on Search Button, all
the details associated with the Landowner will get prefetched. Details like Associated
Directors and authorized signatory of the landowner and then Promoter can click on Next
button to proceed to the next page of the application.
Project Detail
Step 5: The Third screen of the application form is the Project details page. Fill all the
Mandatory fields related to the Project like Project Details, Project Related Revenue
Details, Proximity Details, Water Level and Bank Details & then click on Next button to
proceed to the next page of the application.
Development details68
Step 6: The fourth screen of the application form is the Development details page.
Select type of inventory and fill no. of inventory, Carpet area, Area of Exclusive balcony,
Area of exclusive open terrace (if any) and no. of inventory booked for the selected type.
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Add the entered details by clicking on Add Inventory Details button.
Please ensure that all above field values are in sync with Form 3 Annexure values.
For Internal development work section click on “Click here to Agree & Add” before
proceeding. Enter all the remaining mandatory fields and Click on Save & Next button to
proceed to the next page of the application.69
Add Professionals
Step 7: The Fifth screen of the application form is the Add professionals page.
Enter the valid PAN No. of the RERA registered Professionals Associated with the given
project viz. Agent, Architect, Structural Engineer and Contractor (Company/Individual) in
the Search box provided for each professional and click on Search.
If the PAN no. entered is that of a RERA registered professional the relevant
KYC details shall be auto-fetched as provided at the time of Professional Registration.
Click on Add to associate the said professional with the project and view the detail
summary for each before proceeding to the Next page by clicking on Save & Next. 70
Agent Registration71
Real Estate Act, 2016
(1) No real estate agent shall facilitate the sale or purchase of or act on behalf of any person
to facilitate the sale or purchase of any plot, apartment or building, as the case maybe, in a
real estate project or part of it, being the part of the real estate project registered under
section 3, being sold by the promoter in any planning area, without obtaining registration
under this section.
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Every real estate agent shall make an application to the Authority for registration in
such form, manner, within such time and accompanied by such fee and documents as may
be prescribed.
The Authority shall, within such period, in such manner and upon satisfying itself of the
fulfillment of such conditions, as may be prescribed—
grant a single registration to the real estate agent for the entire State of Union territory, as
the case may be;
reject the application for reasons to be recorded in writing, if such application does not
conform to the provisions of the Act or the rules or regulations made thereunder:
Whereon the completion of the period specified under sub-section (3), if the applicant does
not receive any communication about the deficiencies in his application or the rejection of
his application, he shall be deemed to have been registered.
Whereon the completion of the period specified under sub-section (3), if the applicant does
not receive any communication about the deficiencies in his application or the rejection of
his application, he shall be deemed to have been registered.
Every real estate agent who is registered as per the provisions of this Act or the
rules and regulations made thereunder, shall be granted a registration number by the
Authority, which shall be quoted by the real estate agent in every sale facilitated by him
under this Act.
Every registration shall be valid for such period as may be prescribed, and shall be
renewable for a period in such manner and on payment of such fee as may be prescribed.
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Where any real estate agent who has been granted registration under this Act
commits breach of any of the conditions thereof or any other terms and conditions specified
under this Act or any rules or regulations made thereunder, or where the Authority is
satisfied that such registration has been secured by the real estate agent through
misrepresentation
or fraud, the Authority may, without prejudice to any other provisions under this Act,
revoke the registration or suspend the same for such period as it thinks fit:
Provided that no such revocation or suspension shall be made by the Authority unless an
opportunity of being heard has been given to the real estate agent.
Every real estate agent registered under section 9 shall—72
not facilitate the sale or purchase of any plot, apartment or building, as the case may be, in
a real estate project or part of it, being sold by the promoter in any planning area, which is
not registered with the Authority;
maintain and preserve such books of account, records and documents as may prescribed;
not involve himself in any unfair trade practices, namely:—
the practice of making any statement, whether orally or in writing or by visible

representation which—
falsely represents that the services are of a particular standard or grade;
represents that the promoter or himself has approval or affiliation which such promoter or
himself does not have;
makes a false or misleading representation concerning the services;
permitting the publication of any advertisement whether in any newspaper or otherwise of

services that are not intended to be offered.
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facilitate the possession of all the information and documents, as the allottee,
is entitled to, at the time of booking of any plot, apartment or building, as the case may be;
discharge such other functions as may be prescribed.
Agent Enrollment Process
Please refer the Agent Enrollment process manual before proceeding with Agent
registration application process
Agent Registration Application Process73
Step 1: The Agent user clicks on the Login link on the Home Page and then enters the Login
ID and Password for accessing the Agent Dashboard
Step 2: The Agent has to click on the Apply button on the top right of the Dashboard screen,
followed by “Apply for RERA Registration” to initiate the Agent Registration Application:
Agent Registration application form74
Step 3: Agent Registration form is open for application.
In the Other State RERA Registration details section please enter the Registration no. of the
Agent user (as issued in any state other than Gujarat), select the state name from the
dropdown list, Upload the Registration certificate (as issued by the other state RERA
authority) by clicking on the Upload button.
Once the details are entered, selected and uploaded, click on the “Add into the list” button
to save the record. If there are more than one records the user wants to enter, repeat the
above process and Add to save that record. Multiple records can be added in this section.
(Refer screenshot below). The user may re-enter any particular record details by clicking
on Delete action button from the saved records and Add to update the particular record.
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Step 4: Click on the “File Upload” button in each of the Income Tax Return (ITR) fields
to upload the ITR for the specified financial years. Please note that the user shall be
dynamically prompted to upload the ITRs for last three financial years or lesser,
depending on the date of incorporation (in case of Agent type other than individual). In
case of Individuals, last three financial year returns must be uploaded.
In case you are exempted from filing ITR for any/all financial years, user must upload a
notarized declaration pdf stating the reason for exemption and proceed by clicking on
Submit button
The Acknowledgement No. for the Agent Registration is generated on the

Confirmation page. Click on Print application and Print Receipt to view the
system generated PDF (screenshot below) for reference. Moreover, the
Acknowledgement No. shall also be visible alongside the application75
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3.4 PENAL PROVISION UNDER RERA ACT, 2016
3.4.1 ADVANTAGES OF RERA ACT:
Transparency: It brings total clarity in favor of customers, Promoters, dealers, agents,

builders it must provide accurate disclosures, registration number on the website also on
the advertisement along with the allotment letters, payment modes and amount to be paid
through electronic medium. It is a possible way to alter the corruption between agents
and builders. Buyers can obtain the taxes with stamp duty on the form.
Mandatory registration: Builders must register with the housing regulatory projects and
submit all the details of project to the state government authority. Any development of
apartment or building can be judged through the mentioned details in future
Warranty: RERA will provide 5-year warranty for structural defects such as electric
fittings, tap leakage etc. It helps to maintain the interiors for a time period. It reduces the
ambiguity from the buyers to pay extra expenses on such issues.
It reduces the risk of developer getting bankrupt or insolvent and give buyer a trust support
to buy the property.
It gives buyer the right to revoke back is booking and also can for compensation and interest
in case the buyer feels that he is cheated.
A specialized grievance department is setup in order to give the judgement as soon as

possible.
This act altogether will organize the real estate sector and will construct a bridge of trust
between the buyer and the developer.76
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3.4.1.1 DISADVANTAGES OF RERA ACT:
Due to many restrictions on the developer, there is a problem of cash in the sector and
hence they have to look for various sources from where they can get cash, this leads to the
increase in the price of the unit.
The growth will be stagnant because 70% of the money of the developer is block in escrow
account and that can also need to cash crunch in the sector
There will be a supply-demand imbalance if the project is compliance to all the given rules
and regulation. Giants’ developer can develop 2-3 projects within two years and small
developer may not get the profit margin which they used to get before.
If the developer found guilty in any case than he may be punished up to three year of
imprisonment or 10% penalty of the total cost of project. This may further delay the
possession of the unit and buyer has to wait longer, leading to his financial problems.
RERA doesn't include any rental agreements it totally depends upon the buyer to maintain
the rental agreement which denotes the agreed and disagreed part clearly to save the
property and make a proper use of it.77
3.4.2 ADVANTAGES OF RERA ACT TO BUYERS:78
1.Standardized Carpet Area
Carpet area is the area that can actually usable area which is to be covered by a carpet, or
the area of the apartment, excluding the thickness of inner walls.
Before Rera act builders have their own method or formula for calculating the carpet area
of a flat/property.
But rera has standardized or formulate how a builder calculates the carpet area.
With the launch of the RERA (Real Estate Regulation and Development) Act On May 1,
2016, A Builder needs to clarify how much carpet area they are offering as the Result.
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pm)
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The price of property in India is now dependent on Carpet Area.
This act has a direct impact on price which a builder charge on Property. The following
formula a builder uses when calculating the price of a property – Cost Of Property =
Carpet Area x Rate Per Square Fit.
2. Right to Information About the Property:
This is one of the main benefits of the RERA act for Home Buyers.
You as a Home buyer need to know all the necessary information about the property you
are buying.
This Kind of information can be very helpful for a home buyer in future decision making.
The Developer or Builder is entitled to share all the details regarding the individual
project such as Plan Layout. Stages of construction, Plan of execution, Status of
completion, etc.
3. Builders Won’t Be Able to Delay the Projects:
Under this Benefit of new RERA act. 2016, each property developer have to give a due
date of the possessions of the flat.
And if the developer is not able to complete the project until that date, then they will have
to face many penalties.
If the developer failed to give possession on the given date then the buyer has the
following options –
To withdraw from the project – wherein he/she is entitled to get a full refund along with
the interest.
To continue with the project – in this case, he/he is entitled to get compensation along
with interest79
4. Builders Will Be Held Responsible for Any Defect or Fault in The Construction:
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Under this RERA Act provision, if a buyer discovered any defect or fault in the
construction, Quality or provision of the flat within 5 years after the possession of the flat
such defect will be rectified by builder within 30 days at no extra cost.
If the builder failed to repair the defect, then the buyer shall be entitled to get
compensation.
5. Grievances Will Be Addressed and will Solved Quickly:
If the buyer finds any dissatisfied with the construction or issue regarding the flat, then
the buyer has authority to take action against the builder in Appellate Tribunal under
RERA act.
The tribunal will address your case within 60 days of Grievance case files. And if the
Tribunal failed to solve the problems it shall give the reasons for such failures.
6. Advance Payments:80
A Builder cannot take more than 10% of the cost of the Flat as an advance or application
fees before entering in the agreement of sales. This is one of the major benefits of Rera.
7. Right Of the buyer in case of any false promises:
In Case of any mismatch in the commitment or Promises made by the builder regarding
the actual project.
Then the buyer has the option to withdraw from the projects, wherein he is entitled to get
a full refund of the amount he paid as advance or in some cases interest and claim
compensation.
8. Builders will need all clearances before selling
Earlier days, builders used to sell a project that did not have all clearances. Results many
complected problems to the home buyers.
But under RERA Act. All developers, builders and real estate agents will have to register
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himself with the regulator, and disclosing all each and every detail about the projects and
then only they can sell projects only after the necessary clearance have been verified.
9. Builders won’t be able to use your money for some other project:
Untimely delivery of real estate projects has been the biggest Problem for Home buyers.
According to Economic times, almost all the real estate project launched between 2010
and 2013 had defaulted their possession date primarily because of the fund collected by
the builder from buyer were diverted to a new project.
However Under new RERA act.
The developer will have to transfer 70% of the money received from the buyer to an
escrow account. And after which.
The money will be withdrawn as per the stages of the construction, and it should be
approved by the engineer and CA of the builder.
10. Reduction in Prices of Real Estate:81
When RERA act comes to action in 2016 it has a direct impact on the price of the home,
land and interest rate of your home loan.
Because of the RERA act, The trust and transparency in the real estate business have
been improved. Investment is also increased in the real estate sector.
All these signals give Growth to the sector and higher demand is slowly decreasing the price and
therefore the interest rate on home loans
The benefits of RERA are not just limited to homebuyers, but it also helps the developers
and real estate agents in a number of ways.
RERA act is making the Real Estate sector more professional and secure for investor’s
builders as well as Buyers. 82
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3.4.2.1ADVANTAGES OF RERA ACT TO BUILDERS/PROMOTERS:83
Additional Inflow of Fund
A major hurdle for the development of real estate sector is the start of a project. Financial
reforms such as the establishment of the GST and the liberalization of the FDI have helped
RERA to facilitate business.
Since the RERA Act has renewed faith and transparency, lenders are more willing to
provide builders with cash flow. The demonetization of financial transactions has increased
transparency. More global and local investors are encouraged to invest in Indian projects.
This leads to greater institutionalized capital inflows, making it possible for real estate
projects to be carried out more easily.
RERA will Benefit Builders to Stay Ahead of Competition
Strict laws introduced by RERA helped organize the performance of the RERA approved
builders from other developers. With the more untrustworthy developers excluded in the
real estate sector, fewer projects for false promises were released.
Instead, genuine builders win trust and confidence from home buyers by delivering
developments in a timely manner. Legitimate builders, therefore, establish their image in
the development of projects. This ensured that there is a healthy competition, which in turn
lead to the development of quality property projects as it is difficult for the illegal
landowners to register for RERA.
Well-Regulated Real Estate84
RERA benefits for builders by regulating the real estate network by recording capital, land,
assets, and resources to prevail. Both financial conflicts were quickly resolved to ensure a
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RERA benefits for builders – RERA advantages for developers – 99acres.com (Accessed on 19th
September, 11.00 pm)
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smooth process in the industry. RERA provided wide-ranging opportunities for
increasingly positive real estate investments to boost the real estate sector.
All forms of property referrals have been considered illegal by RERA. However, since
referrals are an important part of real estate growth. Developers are needed to connect to a
RERA-compliant referral platform. A RERA compliant reference framework is developed
and the digital platform makes it easy to document references transparently and allows the
company to grow in a legal process.
Sigh of Relief
After 2 months of acquiring the occupancy certificate, the buyers are required to take
possession of the house. This is good news for the developers as unoccupied assets were
minimized. RERA makes it a mandatory step to regularise payments like Maintenance
costs, registration fees, taxes, water/electricity charges, etc by the buyers. This is an
alleviation for developers, who often get stressed by
the stalled payments. With strict provisions, it not only makes builders organize their works
ahead but also helps them to contribute positively to the economic growth of the country.
Consequences for Non-Registered Projects
Under section 59 of the RERA act, a fine of up to 10% of the expected project costs for
failure to register and if the same is continued an additional 10% of the estimated project
cost or a 3-year prison term or both will be implied.
In accordance with Article 31 of the RERA Act, in the case of a breach by the builder of
RERA provisions, the client can file a complaint with the authority. In the event of the
builder’s non-compliance, the jurisdiction has all rights to take severe action. The authority
may impose a penalty or take the necessary remedial measures to safeguard the buyer. 85
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How RERA Benefits for Builders Society? (propertyadviser.in)
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3.4.3.1DISADVANTAGE OF RERA ACT TO BUILDERS/PROMOTERS
 Developers cannot use this fund in other projects hence new projects cannot be
taken up on account of fund of previous projects.
 Regulation requires approvals and permissions which may result in delay of
starting/finishing of projects.
 Loss of interest of builders in Real estate projects due to strict regulations and
reduced profit.
 Real estate has good employability potentials, but due to RERA developers are
discouraged hence employment opportunities are lost.
 Real estate involves use of construction materials which are means of source of
earning to many small and large scale groups but due to RERA the number of
new projects are reduced hence demand of materials is reduced therefore, it has
effect on economy and employment both .86
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CHAPTER-4: JUDICIAL PERSPECTIVE OF REAL ESTATE
REGULATORY AUTHORITY ACT, 2016
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4.1 POWER OF APPELLATE TRIBUNAL:87
Role of Real Estate Appellate Tribunal under RERA (Real Estate Regulation and
Development Act, 2016) Introduction: This article discusses in details the role,
establishment & powers of Real Estate Appellate Tribunal under RERA (Real Estate
Regulation and Development Act, 2016). Establishment of Real Estate Appellate Tribunal
Every State Govt. shall, within a period of 1 year from the date of coming in force of this
Act, establish an Appellate Tribunal to be known as the ( Name of State / UT) -Real Estate
Appellate Tribunal to exercise the powers conferred & perform the function assign to it by
this Act. The State Govt. may also establish one or more benches of Real Estate Appellate
Tribunal for various jurisdictions in the State or UT.
Every bench of Real Estate Appellate Tribunal shall consist of at least one Judicial Member
and one Administrative or Technical Member.The Govt. or the competent authority or any
person aggrieved by any decision or direction or order made by the Authority or
Adjudicating officer may prefer an appeal before the Appellate Tribunal having jurisdiction
over the matter. The word “Person” as above shall include the association of allottees or
any other voluntary consumer association registered under any law. Where a promoter files
an appeal with Appellate Tribunal, it shall not be entertained without the promoter first
having deposited with the Appellate Tribunal: a) at least 30% of penalty imposed or such
higher % as may be determined by the Appellate Tribunal or b) The total amount to be paid
to the allottee including interest and compensation imposed on him if any, or c) With both,
before the said appeal is heard. Every appeal shall be preferred within 60 days from the
date on which a copy of direction or order or decision made by the Authority or
Adjudicating officer is received by the Govt. or the competent authority or the aggrieved
person. Every appeal shall be filed in triplicate in form ‘L’ along with fees of Rs. 5,000/-
through DD and true copy of the order against which appeal is filed.
The Appellate Tribunal shall endeavour to dispose of the appeal within 60 days from the
date of receipt of appeal. Revision of orders of RERA / Adjudicating Officer The Appellate
Tribunal may, for the purpose of examining the legality or propriety or correctness of any
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order or decision or direction of the Authority or the Adjudicating officer, on its own
motion or otherwise, call for the records relevant to disposing such appeal and make such
orders as it thinks fit.
As per Section 43 (1) of the RERA Act, 2016, within 1 year from the concerned
established RERA Act, the appropriate Government shall establish the Appellate
Tribunal in that State/ Union Territory.
2. There shall be atleast 1 Judicial member and 1 Administrative to Technical member in
every bench of the Appellate Tribunal.
3. This provision has also been provided that 2 or more states can jointly if deem fit can
establish 1 single Appellate Tribunal.
4. An Interim Appellate Tribunal can also be established for the time being until the
establishment of full-fledged Appellate Tribunal to handle the workload to date.
5. All the matters pending with the Interim Appellate Tribunal shall stand transferred to
the proper real Appellate Tribunal so established.
6. As per Section 43(5) of the RERA Act, 2016, any person including the association
of allottees or any voluntary consumer association, aggrieved by the decision of the
Authority or Adjudicating officer can file an appeal to the concerned jurisdictional
tribunal.
7. In case a promoter feels the need to file an appeal with the Appellate Tribunal, that can
only be done if he firstly deposits atleast 30% of the penalty or the total amount to be
paid to the allottee including interest and compensation imposed on him for the said
appeal to be heard.
8. Every appeal shall be entertained within a period of 60 days from the date on which
copy of the direction or order made is received by the aggrieved person with the
accompanying fees. 88
9. After being satisfied with the existence of the sufficient cause for not filing it within
the period described, the tribunal may entertain the appeal after the expiry of 60 days.
10. After giving the opportunity of being heard, it can pass the interim orders too after
receiving such appeal.
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11. The copy of every order shall be passed by it to every party involved.
12. The disposal of the appeal has to be made within 60 days from the receipt of such
appeal. However, the reasons need to be recorded for not disposing of the appeal within
the said period.
13. As per Section 57(1) of the RERA Act, 2016, every order made by the tribunal shall
be executable by the Appellate Tribunal as a decree of the civil court, and for this
purpose, it has all the powers of a Civil Court.
14. It may also transmit any order made by it to a Civil court which shall be bound on the
Civil Court.
15. As per Section 55 of the RERA Act, 2016, any vacancy or defect in the Constitution
of the Appellate Tribunal, any defect in the appointment of a member of the tribunal, or
any irregularity in the procedure of the Appellate Tribunal, shall not invalid the act or
proceeding of the Appellate Tribunal by mere reason of it.
16. Section 53 of the RERA Act, 2016, describes the powers of the Tribunal, as the
tribunal shall not be bound by the procedure laid down by the Code of Civil Procedure,
1908, but shall be guided by the Principles of Natural Justice.
17. It shall also not be bound by the rules of evidence contained in the Indian Evidence
Act, 1872.
18. For the purpose of discharging their functions, it has the same powers as are vested in
a Civil Court under the Code of Civil Procedure, 1908 in the matters like: reviewing its
decisions, receiving evidence on affidavits, requiring the discovery and production of
documents, summoning and enforcing the attendance of any person and examining him
on oath, etc.
19. The Appellate Tribunal shall consist of a Chairperson and not less than 2 Whole-time
members- A Judicial Member and the other shall be a Technical or Administrative
member, to be appointed by the concerned Government of that state.89
Powers of Appellate Tribunal: The Appellate Tribunal shall have all the powers of Civil
Court under CPC, 1908 in respect of following matters: a) Summoning and enforcing the
attendance of any person and examining him on oath; b) Requiring the discovery and
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production of documents; c) Receiving evidence on affidavits; d) Issuing commissions
for examination of witnesses or documents;
e) Reviewing its decisions; f) Dismissing an application for default or directing it ex-
parte; g) Any other matter which may prescribed; All proceedings before the Appellate
Tribunal to be judicial proceedings under Indian Penal Code and shall be deemed to be
civil court for the purposes of section 195 of Cr. PC, 1973 The Appellate Tribunal shall
not be bound by the technicalities of the Code of Civil Procedure, 1908 and the Evidence
Act.
The Appellate Tribunal shall be bound by the principles of natural justice. Additional
Powers of Appellate Tribunal The Appellate Tribunal shall exercise the following
additional powers: a) Require the promoter or allottee or real estate agent to furnish in
writing such information or explanation or produce such documents reasonable time, as it
may deem necessary; b) Requisitioning any public record or document or copy of such
record or document from any office. The Appellate Tribunal may call upon such experts
or consultants from the fields of economics, commerce, accountancy, real estate,
competition, construction, architecture, law or engineering or from any other discipline as
it deems necessary, to assist the Appellate Tribunal in the conduct of any enquiry or
proceedings before it. Every order of the Appellate Tribunal under this Act shall be
executable by the Appellate Tribunal as a decree of the Civil Court. The Appellate Tribunal
may send any of its order to a Civil Court having local jurisdiction and such Civil Court
shall execute the order as if it were a decree made by the court.
LEGAL REMEDIES POST RERA: 90
After the passing of RERA, buyers and their grievances have been duly addressed under
the Act. After the introduction of RERA, seeking legal redressal against defaulting buyers
has becomes much more smooth. RERA now provides for a one stop forum to the
aggrieved instead of dabbling between civil, criminal or consumer forums.
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The Act now clearly maintains that no civil court shall have jurisdiction to entertain any
matter for which this Act was passed. This means that RERA now overrides all other
forums that were previously available for an aggrieved and that the Regulatory Authority
and the Appellate Authority are the only forums available. Section 79 of Chapter X of
RERA states the following –
No civil court shall have jurisdiction to entertain any suit or proceeding in respect of any
matter which the Authority or the adjudicating officer or the Appellate Tribunal is
empowered by or under this Act to determine and no injunction shall be granted by any
court or other authority in respect of any action taken or to be taken in pursuance of any
power conferred by or under this Act.
With respect to this definition, consumer forums have not been specifically barred by
RERA for home buyers to seek relief. A consumer forum is not considered a civil court
and thus an aggrieved can approach either a consumer forum or a regulatory authority set
up under RERA. However, if a case has been filed with a consumer forum the same can be
withdrawn and presented before a regulatory authority under RERA.
 4.1.1 OFFENCES, ITS PENALTIES & ADJUDICATION 91
Section 59: Punishment for non-registration under section 3.

(1) If any promoter contravenes the provisions of section 3, he shall be liable to a penalty
which may extend up to ten per cent. of the estimated cost of the real estate project as
determined by the Authority.
(2) If any promoter does not comply with the orders, decisions or directions issued under
sub-section (1) or continues to violate the provisions of section 3, he shall be punishable
with imprisonment for a term which may extend up to three years or with fine which may
extend up to a further ten per cent. of the estimated cost of the real estate project, or with
both.
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Section 60: Penalty for contravention of section 4.
If any promoter provides false information or contravenes the provisions of section 4, he
shall be liable to a penalty which may extend up to five per cent. of the estimated cost of
the real estate project, as determined by the Authority.
Section 61: Penalty for contravention of other provisions of this Act.

If any promoter contravenes any other provisions of this Act, other than that provided
under section 3 or section 4, or the rules or regulations made thereunder, he shall be liable
to a penalty which may extend up to five per cent of the estimated cost of the real estate
project as determined by the Authority.
Section 62: Penalty for non registration and contravention under sections 9 and 10.92
If any real estate agent fails to comply with or contravenes the provisions of section 9 or
section 10, he shall be liable to a penalty of ten thousand rupees for every day during which
such default continues, which may cumulatively extend up to five per cent. of the cost of
plot, apartment or buildings, as the case may be, of the real estate project, for which the
sale or purchase has been facilitated as determined by the Authority.
Section 63: Penalty for failure to comply with orders of Authority by promoter.
If any promoter, who fails to comply with, or contravenes any of the orders or directions
of the Authority, he shall be liable to a penalty for every day during which such default
continues, which may cumulatively extend up to five per cent., of the estimated cost of the
real estate project as determined by the Authority.
Section 64: Penalty for failure to comply with orders of Appellate Tribunal by promoter.
If any promoter, who fails to comply with, or contravenes any of the orders, decisions or
directions of the Applellate Trinbunal, he shall be punishable with imprisonment for a term
which may extend up to three years or with fine for every day during which such default
continues, which may cumulatively extend up to ten per cent. of the estimated cost of the
real estate project, or with both.
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Section 65: Penalty for failure to comply with orders of Authority by real estate agent.
If any real estate agent, who fails to comply with, or contravenes any of the orders or
directions of the Authority, he shall be liable to a penalty for every day during which such
default continues, which may cumulatively extend up to five per cent., of the estimated
cost of plot, apartment or building, as the case may be, of the real estate project, for which
the sale or purchase has been facilitated and as determined by the Authority.
Section 66: Penalty for failure to comply with orders of Appellate Tribunal by real estate
agent.93
If any real estate agent, who fails to comply with, or contravenes any of the orders,
decisions or directions of the Appellate Tribunal, he shall be punishable with imprisonment
for a term which may extend up to one year or with fine for every day during which such
default continues, which may cumulatively extend up to ten per cent. of the estimated cost
of plot, apartment or building, as the case may be, of the real estate project, for which the
sale or purchase has been facilitated, or with both.
Section 67: Penalty for failure to comply with orders of Authority by allottee.
If any allottee, who fails to comply with, or contravenes any of the orders, decisions or
directions of the Authority he shall be liable to a penalty for the period during which such
default continues, which may cumulatively extend up to five per cent. of the plot, apartment
or building cost, as the case may be, as determined by the Authority.
Section 68: Penalty for failure to comply with orders of Appellate Tribunal by allottee.
If any allottee, who fails to comply with, or contravenes any of the orders or directions of
the Applellate Tribunal, as the case may be, he shall be punishable with imprisonment for
a term which may extend up to one year or with fine for every day during which such
default continues, which may cumulatively extend up to ten per cent. of the plot, apartment
or building cost, as the case may be, or with both.
93
103
Section 69: Offences by companies.
(1) Where an Offence under this Act has been committed by a company, every person who,
at the time, the offence was committed was in charge of, or was responsible to the company
for the conduct of, the business of the company, as well as the company, shall be deemed
to be guilty of the offence and shall be liable to be proceeded against and punished
accordingly:
Provided that nothing contained in this sub-section, shall render any such person liable to
any punishment under this Act if he proves that the offence was committed without his
knowledge or that he had exercised all due diligence to prevent the commission of such
offence.
(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act
has been committed by a company, and it is proved that the offence has been committed
with the consent or connivance of, or is attributable to, any neglect on the part of any
director, manager, secretary or other officer of the company, such director, manager,
secretary or other officer shall also be deemed to be guilty of that offence and shall be liable
to be proceeded against and punished accordingly.
Explanation.—For the purpose of this section,—
(a) ''company'' means any body corporate and includes a firm, or other association of
individuals; and
(b) ''director'' in releation to a firm, means a partner in the firm. 94
Section 70: Compounding of offences.

Notwithstanding anything contained in the Code of Criminal Procedure, 1973, if any
person is punished with imprisonment under this Act, the punishment may, either before
94
104
or after the institution of the prosecution, be compounded by the court on such terms and
conditions and on payment of such sums as may be prescribed:
Provided that the sum prescribed shall not, in any case, exceed the maximum amount of
the fine which may be imposed for the offence so compounded.
Section 71: Power to adjudicate.
(1) For the purpose of adjudging compensation under sections 12, 14, 18 and section 19,
the Authority shall appoint in consultation with the appropriate Government one or more
judicial officer as deemed necessary, who is or has been a District Judge to be an
adjudicating officer for holding an inquiry in the prescribed manner, after giving any
person concerned a reasonable opportunity of being heard:
Provided that any person whose complaint in respect of matters covered under sections 12,
14, 18 and section 19 is pending before the Consumer Disputes Redressal Forum or the
Consumer Disputes Redressal Commission or the National Consumer Redressal
Commission, established under section 9 of the Consumer Protection Act, 1986, on or
before the commencement of this Act, he may, with the permission of such Forum or
Commission, as the case may be, withdraw the complaint pending before it and file an
application before the adjudicating officer under this Act.
(2) The application for adjudging compensation under sub-section (1), shall be dealt with
by the adjudicating officer as expeditiously as possible and dispose of the same within a
period of sixty days from the date of receipt of the application:
Provided that where any such application could not be disposed of within the said period
of sixty days, the adjudicating officer shall record his reasons in writing for not disposing
of the application within that period.95
95
105
(3) While holding an inquiry the adjudicating officer shall have power to summon and
enforce the attendance of any person acquainted with the facts and circumstances of the
case to give evidence or to produce any document which in the opinion of the adjudicating
officer, may be useful for or relevant to the subject matter of the inquiry and if, on such
inquiry, he is satisfied that the person has failed to comply with the provisions of any of
the sections specified in sub-section (1), he may direct to pay such compensation or
interest, as the case any be, as he thinks fit in accordance with the provisions of any of
those sections.
Section 72: Factors to be taken into account by the adjudicating officer.

While adjudging the quantum of compensation or interest, as the case may be, under
section 71, the adjudicating officer shall have due regard to the following factors,
namely:—
(a) the amount of disproportionate gain or unfair advantage, wherever quantifiable, made
as a result of the default;
(b) the amount of loss caused as a result of the default;
(c) the repetitive nature of the default;
(d) such other factors which the adjudicating officer considers necessary to the case in
furtherance of justice.96
4.2 GRIEVANCES REDRESSAL IN GUJARAT AS PER REAL ESTATE

REGULATORY AUTHORITY (RERA ACT, 2016)
Gujarat RERA has established grievance redressal mechanism as per the Act, Rules and
Regulation and has implemented comprehensive grievance redressal mechanism. With
technology, the entire process of grievance redressal process has been made more effective,
more enabling and at the same time more standardized. 97
96
RERA Act | RERA Bare Act | RERA Full Text (reralaws.com) (Accessed on 22nd September 2022, 9.30pm)
97
GujRERA: RERA Complaint Redressal in Gujarat (centrik.in) (Accessed on 22nd September 2022, 9.30pm)
106
The major type of grievances that authority processes are as below:
Authority Complaint (Form A)
Adjudicating Complaint (Form B)
Suo Motu Complaints
Conciliation Application (Dispute Review)
Review Applications
Support Request
Defect Liability
Here we will understand the entire process of various types of grievance filing,
processing and disposal mechanism in subsequent sections.
4.2.1 COMPLAINT FILING PROCESS: 98
Step 1: User has to Log into system.
Any user registered on GujRERA Portal will have access to filing of the complaint. User
has to Log into the system post Signing Up one time.
Step 2: Citizen/Promoter user has to select option for creating a complaint. Here the use
may opt for conciliation if required by clicking “Yes”
Step 3: Citizen/Promoter user has to create complaint selecting and filling all required field
There are various forms subjecting for complaint in tribunal for any malpractices in
RERA.99
98
Gujarat Real Estate Regulatory Authority (Accessed on 22nd September 2022, 9.45pm)
99
Gujarat Real Estate Regulatory Authority
107
FORM ‘A’ [See rule 11(1)]100
COMPLAINT TO REGULATORY AUTHORITY
Complaint under section 31 of the Act
For use of Regulatory

Authority(s) office: Date of
filing:
Date of receipt by post: _ Complaint No.:
Signature:
Registrar:
IN THE REGULATORY AUTHORITIES OFFICE (Name

of place)
Between
Complainant(s)
And
Respondent(s)
Details of claim:
1. Particulars of the complainant(s):

(i) Name of the complainant:
(ii) Address of the existing office / residence of the complainant:
(iii) Address for service of all notices:
2. Particulars of the respondents:

(i) Name(s) of respondent:
(ii) Office address of the respondent:
100
https://gujrera.gujarat.gov.in/resources/staticpage/FORM_A.pdf
108
3. Jurisdiction of the regulatory Authority:
The complainant declares that the subject matter of the claim falls within the
jurisdiction of the regulatory Authority.
4. Facts of the case:
[give a concise statement of facts and grounds for complaint]
5. Relief(s) sought:
In view of the facts mentioned in paragraph 4 above, the complainant prays

for the following relief(s)
[Specify below the relief(s) claimed explaining the grounds of relief(s) and the legal
provisions (if any) relied upon]
1. Interim order, if prayed for:
Pending final decision on the complaint the complainant seeks issue of the
following interim order:
[Give here the nature of the interim order prayed for with reasons]
2. Complainant not pending with any other court, etc.:
The complainant further declares that the matter regarding which this
complaint has been made is not pending before any court of law or any other
Authority or any other tribunal(s).
3. Particulars of bank draft in respect of the fee in terms of sub-rule (1) of rule 36:
(i) Amount
(ii) Name of the bank on which drawn
109
(iii) Demand draft number
4. List of enclosures:
[Specify the details of enclosures with the complaint]
Verification
I (name in full block letters) son / daughter of the complainant

do hereby verify that the contents of paragraphs [1 to 9] are true to my personal
knowledge and belief and that I have not suppressed any material fact(s).
Place:
Date:
Signature of the
complainant(s)
110
FORM ‘B’
[See rule 12(1)]
APPLICATION TO ADJUDICATING OFFICER 101
Claim for compensation under section 31 read with section 71 of the Act
For use of Adjudicating

Officers office:Date of filing:
Date of receipt by post: _ Application No.:

Signature: Authorized Officer:
IN THE ADJUDICATING OFFICER’S OFFICE (Name of

place)
Between
applicant(s)
And
Respondent(s)
Details of claim:
101
complaint-to-adjudicating-officer-form-cao.pdf (centrik.in)
111
1. Particulars of the applicant(s):
(i) Name of the applicant:
(ii) Address of the existing office / residence of the appellant:
(iv) Details of allottees apartment, plot or building
2. Particulars of the respondents:

(i) Name(s) of respondent:
(ii) Office address of the respondent:
(iv) Registration no. and address of project:
3. Jurisdiction of the Adjudicating Officer:
The applicant declares that the subject matter of the claim falls within the
jurisdiction ofthe adjudicating officer.
4. Facts of the case:[give a concise statement of facts and grounds of claim against
the promoter]
Compensation(s) sought:
In view of the facts mentioned in paragraph 4 above, the applicant prays

for the following compensation(s)
[Specify below the compensation(s) claimed explaining the grounds of

claim(s) and the legal provisions (if any) relied upon]
5. Claim not pending with any other court, etc.:
The applicant further declares that the matter regarding which this appeal
112
has been made is not pending before any court of law or any other Authority
or any other tribunal(s).
6. Particulars of bank draft in respect of the fee in terms of sub-rule (1) of rule 36:
(iv) Amount
(v) Name of the bank on which drawn
(vi) Demand draft number
7. List of enclosures:
[Specify the details of enclosures with the application]
Verification
I (name in full block letters) son / daughter of the applicant

do herebyverify that the contents of paragraphs [1 to 8] are true to my personal
knowledge and belief and that I have not suppressed any material fact(s).
Place:
Date:
Signature of the
applicant(s)
113
4.2.1.1 Offences and Penalties in Gujarat as per GujRERA ACT,
2016: 102
(1) The court shall, for the purposes of compounding any offence specified under
section 70, accept a sum of money as specified in the Table below:
Offence Money to be paid for compounding the offence
Imprisonment under sub 5% of the estimated cost of the real estate project
section (2) of section 59
Imprisonment under 5% of the estimated cost of the real estate project

section 64
Imprisonment under 5% of the estimated cost of the plot, apartment or

section 66 building, as the case may be, of the real estate project,
for which the sale or purchase has been facilitated
Imprisonment under 5% of the estimated cost of the plot, apartment or

section 68 building, as the case may be
Provided that the State Government may, by notification in the official gazette, amend
the rates specified in the table above.
(2) On payment of the sum of money in accordance with the table above, any person in
custody in connection with that offence shall be set at liberty and no proceedings shall
be instituted or continued against such person in any court.
102
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1&pq=offences+and+penalties+in+gujrera&sc=4-
33&sk=&cvid=A179C19628AC492084425B1EC718DB2D&ghsh=0&ghacc=0&ghpl=
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(3) The acceptance of the sum of money for compounding an offence in accordance
with the table above, by the Court shall be deemed to amount to an acquittal within the
meaning of section 300 of the Code of Criminal Procedure, 1973.
(4) The promoter, allottee or real estate agent, as the case may be, shall comply with
the orders of the regulatory authority or the Appellate Tribunal, within the period
specified by the court, which shall not be more than 30 days from the date of
compounding of the offence.
Appellate Tribunal, as the case may be, in the event of its inability to execute the order,
send such order to the Principal Civil Court, to execute such order either within the
local limits of whose jurisdiction the real estate project is located or in the Principal
Civil Court within the local limits of whose jurisdiction the person against whom the
order is being issued, actually and voluntarily resides, or carries on business, or
personally works for gain. For the purpose of sub-section (2) of section 40, every order
passed by the Adjudicating Officer, Regulatory Authority or Appellate Tribunal, as the
case may be, under the Act or the rules and regulations made thereunder, shall be
enforced by the Adjudicating Officer, Regulatory Authority or the Appellate Tribunal
in the same manner as if it were a decree or order made by the Principal Civil Court in
a suit pending therein and it shall be lawful for the Adjudicating Officer, Regulatory
Authority.
4.3 CONSTITUTIONAL VALIDITY OF REAL ESTATE

REGULATORY AUTHORITY (RERA ACT, 2016)103
The Real Estate (Regulation and Development) Act 2016, was enacted to regulate the
immovable properties of India specifically the residential ones. The Act tries to make
the authorities answerable to the judicial bodies and people and safeguards the interests
of home buyers and give a boom to the real estate industry. The Act has further
mentioned that Real Estate Regulating Authority shall be set up in each state
respectively acting as a redressal body for adjudicating the sector specific cases.
103
Constitutional validity of RERA - DSK Legal
115
The RERA Act was passed in March 2016, and made effective from 1st May 2016, but
the entire Act came into force from 1st May 2017. The Act had given a mandate for
every State and Union Territory. They are-
Make the RERA Rules for particular State or Union Territory within 6 months from the
date of enactment of the Act. The Rules will mention the procedure and registration
fees for registration of properties accordingly as per the rates in their state under the
RERA Act. Further, RERA Rules will also comprise of compliances to be followed by
the builders and agents along with grievance redressal procedure for the disputes arising
in the particular state.
Notify the RERA Authority for particular state within 1 year of effective date. The
RERA Authority shall act as the RERA registration authority. It shall also be the first
authority for RERA grievance redressal mechanism.
The States need to constitute RERA Appellate Tribunal as appellate authority for
respective state or UT within 1 year of effective date. This RERA Appellate Tribunal
will act as the appellate authority for RERA grievances.
There are certain statistics for measuring the effectiveness of implementation of RERA
in every state or union territory.
There are 30 States and Union Territories in total who have notified the rules under
RERA
29 states/ UT have set up the Real Estate Regulatory Authority, 20 regular and 9 interim
22 states/ UT have set the Real Estate Regulatory Appellate Authority, 13 regular and
9 interim
The Regulatory Authorities of 24 states have even operationalized their official

websites in accordance to the provisions of RERA Act.
4.3.1 JUDICIAL REVIEW ON RERA104
The Real Estate (Regulation and Development), Act, 2016 (RERA) is a great effort in
the direction of organizing the real estate sector in India. RERA accounts for major
104
Judicial Powers to RERA (indialawoffices.com)
116
changes and has come across as a means for mandating the regulation of real estate
sector with the primary aim of protecting the interests of consumers.
RERA in Section 20(1) necessitated each State to set up the Regulator within a period
of one year from coming into force of the Act. Section 21 of RERA further requires
that the State Regulatory Authority must comprise a Chairperson and not less than two
whole time Members to be appointed by the appropriate government.
As a Regulatory Authorities, State RERAs enjoy the Quasi-judicial powers. RERA has
conferred the State Regulatory Authority with extensive powers to protect public
interest that are akin to those enjoyed by the civil courts.105
They can initiate any inquiry or investigate into accusations levelled against any
promoter suo motu or on receipt of complaints from homebuyers and the Authority is
vested, under section 35 of RERA, with the powers of a civil court under the Code of
Civil Procedure, 1908 while trying a suit, in respect of
 the discovery and production of books of account and other documents, at such place
and at such time as may be specified by the Authority;
 summoning and enforcing the attendance of persons and examining them on oath;
 issuing commissions for the examination of witnesses or documents;
 any other matter which may be prescribed.

The State Regulatory Authorities can also pass any interim order to restrain any
promoter, allottee or real estate agent from carrying an act in contravention of this
Act, or the rules and regulations made thereunder during the continuation of inquiry.
To clothe the orders passed by the Authority with sanctity, RERA under section 63
provides that any promoter, who fails to comply with, or contravenes any of the orders
or directions of the Authority shall be liable for a penalty which may cumulatively
extend up to five per cent of the estimated cost of the real estate project as determined
by the Authority, for every day during which such default continues.
105
Judicial Powers to RERA (indialawoffices.com) (Accessed on 22th September 2022, 11.30pm)
117
Establishment of the State Regulators has brought a great sense of relief in consumers
as it provides them with an effective and exclusive grievance redressal mechanism
which saves them time, money and energy.
However, of late, to bring justice to consumers, many of the State Real Estate
Regulatory Authorities are asserting for a wider range of enforcement powers including
that of issuing arrest warrants, as are enjoyed by the consumer forums in our country,
which can assume the powers of a first class judicial magistrate for the trial of offences.
State RERAs have practically no bite if they cannot execute their own orders. They are
dependent on the traditional machinery to implement their orders, where the party if not
willing to carry out the order/direction of RERA moves the civil court, deferring the
matter indefinitely.
Primary reason for bleak rate of recovery of dues from the promoters is that the power
to do so lies with the Revenue Department. RERA in its present form is unable to
provide immediate relief to the consumers in cases of defaulting promoters.
Bearing the torch of change, the Real Estate Regulatory Authority (RERA) of Madhya
Pradesh, in November 2019, has become the first Authority in India to acquire judicial
powers. It created the post of Executing Officer as well, empowered with powers of
both civil and revenue court, to ensure compliance of order/direction of the Authority,
who can be approached against anyone not accepting the orders within 90 days. The
execution fee is also borne by the promoter itself and the allottee is to pay an amount
of Rs 1,000 only. 106
Without a doubt, this is a welcome change, certainly to speedily dispose of promoter-

consumer rows.
Following the positive trend, in January 2020, the Karnataka RERA has propositioned
to give judicial powers to the Regulatory Authority to execute its own directions/orders,
analogous to the consumer forums.
106
Judicial Powers to RERA (indialawoffices.com) (Accessed on 22th September 2022, 11.30pm)
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Such amendment would certainly change the course of things, as we know it, increase
the rate of compliance and legally bind the parties to the dispute to honour the orders
of the Regulatory Authorities.
119
4.4 LAND MARK CASES OF SUPREME COURT OF INDIA:
1. Case Analysis: M/s. Newtech Promoters and Developers Pvt. Ltd. vs. State of U.P.
and others.107
Forum: Supreme Court of India.
Case No./Citation: Civil Appeal No(s). 6745-6749 of 2021.
Bench: Justices Uday Umesh Lalit, Ajay Rastogi, and Aniruddha Bose.
Date of Decision: 11.11.2021
The Supreme Court recently took up a very pertinent case concerning the functioning
of the Real Estate Regulatory Authority (RERA) and has delivered a very remarkable
judgment that comes as a huge aide for homebuyers of several stuck projects throughout
the country.
Backdrop of the Case:
The judgment was passed on several common questions of law arising out of the various
appeals that were filed by defaulting promoters/developers challenging the order of
various High Courts.
The common link between these appeals were the homebuyers who had made their
substantial investment from their hard-earned money under the belief that real estate
developers will hand over possession of their allotted unit in terms of the agreement
entered between them. But their bonafide belief got shaken when they didn’t get the
possession even several years after the promised deadline. Feeling aggrieved such
inaction, they instituted complaints under various provisions of the RERA which
provide for refund along with interest as well as compensation to the allottee. It so
happened that such complaints were heard by a single Member of the RERA whereby
it was directed to the promoters/developers to refund the principal amount along with
interest (rate of which was fixed by RERA).
Eventually, some promoters/developers chose to approach the High Court against the
order of RERA by filing Writ Petitions under Article 226 of the Constitution thereby
107
Critical analysis of Newtech Promoters and Developers Pvt. Ltd. vs. State of UP and Others
(taxguru.in) (Accessed on 23rd September 2022, 3.00pm)
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assailing the jurisdiction of the RERA to pass such direction for issuing refund along
with interest. They further challenged the condition of pre-deposit as envisaged under
proviso to Section 43(5) of the RERA Act, 2016 (Act of 2016) for filing a statutory
appeal before Real Estate Appellate Tribunal and also raised certain ancillary questions
for consideration in writ jurisdiction before the High Court. Ultimately, the High Court
dismissed these petitions preferred at the instance of promoters/real estate developers
and upheld the jurisdiction of RERA.
However, the orders passed by the High Court were later challenged before Hon'ble
Supreme Court, and after hearing both the parties the following issues emerged in front
of the court to decide:
Pertinent Issues Raised:
Whether the Act of 2016 is retrospective or retroactive in its operation and what will be
its legal consequences if checked on the anvil of the Constitution of India?
Whether the Authority has jurisdiction to direct return/refund of the amount to the
Allottee along with interest under Section 12, 14, 18, and 19 of the Act, or does the
jurisdiction exclusively lie with the Adjudicating Officer under Section 71 of the Act?
Whether Section 81 of the Act authorize the Authority to delegate its powers to a single
member of Authority to hear matters under Section 31 of the Act?
Whether the condition of pre-deposit under proviso to Section 43(5) of the Act for
entertaining an appeal before Real Estate Appellate Tribunal is sustainable in law?
Whether the Authority has the power to issue a Recovery Certificate of the amount in
question under Section 40(1) of the Act in order to recover the due amount from the
promoters/developers as an arrear of land revenue?
Verdict & Observations:108
On the above-raised issues, Hon'ble Supreme Court made the following observations:
It was observed that the clear and unambiguous language of the statute is retroactive in
operation. The legislature consciously enacted a retroactive statute to ensure the interest
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of consumers in the real estate sector is protected and Sections 13, 18(1) and 19(4) are
all beneficial provisions for safeguarding the pecuniary interest of the
consumers/allottees. The Parliament is always competent to enact any law affecting the
antecedent events under its fold within the parameters of law.
The legislative power to make the law with prospective/retrospective effect is well
recognized and it would not be permissible for the appellants/promoters to say that they
have any vested right in dealing with the completion of the project by leaving the
allottees in lurch, in a helpless and miserable condition that at least may not be
acceptable within the four corners of law.
Thus, it negates the contention of the promoters regarding the contractual terms having
an overriding effect over the retrospective applicability of the Act.
The court observed that it is vivid from the scheme of the Act that power of adjudication
has been conferred with both Regulatory Authority and Adjudicating officer. What
finally culls out is that although the Act indicates the distinct expressions like 'refund',
'interest', 'penalty' and 'compensation', a conjoint reading of Sections 18 and 19 clearly
manifests that when it comes to refund of the amount, and interest on the refund amount,
or directing payment of interest for delayed delivery of possession, or penalty and
interest thereon, it is the Regulatory Authority which has the power to examine and
determine the outcome of a complaint. At the same time when it comes to a question of
seeking relief of adjudging compensation and interest thereon under sections 12, 14, 18
and 19, the Adjudicating officer has the power to determine, keeping in mind the
collective reading of the same along with section 71 and 72 of the Act. If the
adjudication under Sections 12, 14, 18 and 19 other than compensation as envisaged, if
extended to the Adjudicating officer as prayed that, in our view, may intend to expand
the ambit and scope of the powers and functions of the adjudicating officer under
Section 71 and that would be against the mandate of the Act 2016.
There is a complete delineation of the jurisdiction vested with the regulatory authority
and the adjudicating officer. If there is any breach or violation of the provisions of
Sections 12, 14, 18 and 19 of the Act by the promoter, such a complaint straightaway
has to be filed before the regulatory authority. What is being referable to the
adjudicating officer is for adjudging compensation, as reflected under Section 71 of the
Act and accordingly rules and regulations have been framed by the authority for
122
streamlining the complaints which are made by the aggrieved person either on account
of violation of the provisions of Sections 12, 14, 18 and 19 or for adjudging
compensation and there appears no question of any inconsistency being made, in the
given circumstances, either by the regulatory authority or the adjudicating officer.
Further the court observed that Section 81 of the Act, 2016 empowers the Authority by
general or special power to delegate its powers to any member of the authority subject
to conditions as may be prescribed under the Act. The Court opined that all other powers
exercised by the authority could be delegated to any of its members for expeditious
disposal of complaints by a special or general order. In the present case vide special
order dated 05.12.2018 power was delegated to a single member to decide complaints
under Section 31.109
In view of the remedial mechanism provided under the scheme of the Act 2016, in our
considered view, the power of delegation under Section 81 of the Act by the authority
to one of its members for deciding applications/complaints under Section 31 of the Act
is not only well defined but expressly permissible and that cannot be said to be dehors
the mandate of law.
The court observed that the obligation casted upon the promoter of predeposit under
Section 43(5) of the Act, being a class in itself, and the promoters who are in receipt of
money which is being claimed by the home buyers/allottees for refund and determined
in the first place by the competent authority, if legislature in its wisdom intended to
ensure that money once determined by the authority be saved if appeal is to be preferred
at the instance of the promoter after due compliance of predeposit as envisaged under
Section 43(5) of the Act, in no circumstance can be said to be onerous as prayed for or
in violation of Articles 14 or 19(1)(g) of the Constitution of India.
It is indeed the right of appeal which is a creature of the statute, without a statutory
provision, creating such a right the person aggrieved is not entitled to file the appeal. It
is neither an absolute right nor an ingredient of natural justice, the principles of which
must be followed in all judicial and quasi judicial litigations and it is always be
circumscribed with the conditions of grant. At the given time, it is open for the
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legislature in its wisdom to enact a law that no appeal shall lie or it may lie on fulfilment
of precondition, if any, against the order passed by the Authority in question. It was
fiurther observed that, the intention of the instant legislation appears to be that the
promoters ought to show their bona fides by depositing the amount so contemplated.
The Hon'ble Court remarked that there is indeed a visible inconsistency in the powers
of the authority regarding refund of the amount received by the promoter and the
provision of law in Section 18 and the text of the provision by which such refund can
be referred under Section 40(1). While harmonising the construction of the scheme of
the Act with the right of recovery as mandated in Section 40(1) of the Act keeping in
mind the intention of the legislature to provide for a speedy recovery of the amount
invested by the allottee along with the interest incurred thereon is selfexplanatory.
However, if Section 40(1) is strictly construed and it is understood to mean that only
penalty and interest on the principal amount are recoverable as arrears of land revenue,
it would defeat the basic purpose of the Act.
There appears some ambiguity in Section 40(1) of the Act that in our view, by
harmonising the provision with the purpose of the Act, is given effect to the provisions
is allowed to operate rather running either of them redundant, noticing purport of the
legislature and the abovestated principle into consideration, we make it clear that the
amount which has been determined and refundable to the allottees/home buyers either
by the authority or the adjudicating officer in terms of the order is recoverable within
the ambit of Section 40(1) of the Act.
2.M/s Imperia Structures Ltd. V. Anil Patni And Anr. Etc.110
CITATION: Civil Appeal Diary No. 9796 of 2019 CIVIL APPEAL NO. 3581-
3590 OF 2020
Facts:
The facts of the case can be briefly outlined as the appellant launched a project named
‘The ESFERA’ in Gurgaon, Haryana in 2011 and all the complainants booked their
110
Recent Judgments on RERA ACT, 2016 - Law Insider India (Accessed on 23rd September 2022,
3.00pm)
124
apartments and paid the booking amount and later Builder Buyer Agreement was
entered by all the complainants and the appellant.
“On failure of company to deliver possession within 3 years from the date of execution
of the agreement, the developer/company shall be entitled to terminate the agreement
and shall be entitles to refund the amounts paid by the allotees with simple interest of
9% p.a for the period such amount were with the developer and no other compensation
can be claimed.
It was totally on the discretion of the developer to cancel or terminate the agreement or
not.”
Another clause 41 of the agreement provided for the provision of Force Majure as:
“Force Majure :The Developer/Company shall not be held responsible or liable for not
performing any of its obligations or undertakings provided for in this Agreement if such
performance is prevented, delayed or hindered by an act of God, fire, flood, explosion,
war, riot, terrorist acts, sabotage, inability to procure or general shortage of energy,
labour, equipment, facilities, materials or supplies, failure of transportation, strikes,
lock outs, action of labour unions or any other cause (whether similar or dissimilar to
the foregoing) not within the reasonable control of the Developer/Company.” 111
The developer failed to complete the construction and deliver the possession within 3
years of the decided time and a suit was filed by the complainants contending that the
developer had ulterior motives and never intended to deliver the possession. The
developer only intended to extract money from the innocent buyers and thus, stopped
the construction as soon as he got the money.
One of the complainants filed appeal with Consumer Disputes Redressal Commission,
New Delhi
(Civil Appeal Diary No. 9796 of 2019 CIVIL APPEAL NO. 3581-3590 OF 2020 @
CIVIL APPEAL DIARY NO.9796/2019 M/s Imperia Structures Ltd. vs. Anil
Patni
111
3.00pm)
125
The present appeal was brought in the hon’ble Supreme Court by the appellant on the
contention that since the appellants have approached the Consumer Disputes Redressal
Commission, they shall be barred from instituting suit and claiming benefits thereunder
because there exists a special act to address this grievance and the NCDRC ought not
have entertained the complaint.
Issue:
So, the important question arose before the Court was:
“Despite enactment of a special act RERA can home buyers still approach the consumer
forum to seek remedies including refund and compensation from the developer for
delayed possession of the property.”
Observations and Decision:
The court observed and held as follows:
The remedies under Consumer Protection Act are additional and are over and above
other remedies available under any other Acts. The availability of any other alternate
remedy under any special statute is no bar for claiming benefits under Consumer
Protection Act.
A person if satisfies to be a ‘consumer’ under Consumer Protection Act shall be entitled

have remedies and initiate proceedings under the Consumer Protection Act apart from
the normal civil remedies available. If he does not satisfy to be ‘consumer’ then he is
entitled to claim only normal civil remedies. 112
RERA ACT provides for the remedy to an allotee who on failure of the developer to
deliver possession within the agreed period under Section 18 of the RERA ACT,2016.
The section provides that on failure of the developer to deliver possession by the date
specified in the agreement, the developer, if the allotee wishes to withdraw from the
project, shall be liable to return the amount received by him with respect to the property
and with such rate of interest as prescribed. And if allotee does not wish to withdraw
from the project then the developer shall be liable to pay interest for every month of
112
3.00pm)
126
delay till the handing over of the possession. It is totally up to the discretion of the
allotee to choose any option.
The right of allotee under Section 18 of the RERA ACT is an unqualified right and is
made without “any prejudice to any other remedy available”. The intent of the
lawmakers is clear in Section 18 that it is the discretion of allotee to choose to continue
or exist. Thus, any clause inferring the discretion to the developer like in present case
shall have no relevance and shall stand null and void.
The court held that even though special authorities to regulate and promote real estate
sector are created under RERA ACT but by the virtue of Section 18 that gives right
“without prejudice to any other remedy available”, any person cannot be barred from
claiming other remedies available under any other laws.
Section 79 of the RERA ACT bars jurisdiction of Civil Court to entertain any suit or
proceeding of a matter the authority under RERA ACT is empowered to deal. Thus, an
allotee would stand barred from invoking jurisdiction of a Civil Court. The court
observed by quoting the landmark decision of Malay Kumar Ganguli vs. Dr. Sukumar
Mukherjee that although proceedings before NCDRC are of judicial nature but are not
in nature of civil court proceedings within the meaning of Civil Procedure Code and
thus, cannot be called a civil court. So, a person who can be called a ‘consumer’ under
Consumer Protection Act cannot be barred by virtue of section 79 of RERA ACT.
The court observed that the developer is a service provider and shall be treated same as
any other service provider within the scope of Consumer Protection Act and therefore,
the buyer or allotee shall be treated as a consumer of the services of the developer. And
thus it was held that,
“Section 79 of the RERA ACT Act does not in any way bar the Commission or Forum
under the provisions of the CP Act to entertain any complain.”
Section 88 of RERA ACT specifies that provisions of RERA ACT would be in addition
and not in derogation of the provisions of any other law.
The decision of Pioneer Urban Land And … vs Union Of India on 9 August was
referred by the court wherein it was held that RERA ACT should be harmoniously read
with the other code and laws for the time being in force. In event of conflict only the
code shall prevail over RERA ACT.
127
It was held that merely on the ground of expiry of the registration of the project under
RERA ACT, the allotee cannot be barred to maintain an action against the developer.
Thus, it was held by SC that “Despite RERA ACT, home buyers can pursue remedies
against real estate firms at consumer fora”
4.4.1 CASE LAWS UNDER GujRERA ACT, 2016
1. Bhupatbhai Vekariya v/s Shivdhara Heights ,Surat Chairperson And Member

Of Gujarat Real Estate Regulatory Authority 113
Citation : Appeal No 01/2018
Bhupatbhai Kalyanbhai Vekariya (the appellant) filed a

complaint before GUJ
RERA authorities. After considering the complaint order was
passed by the relevant Authorities. Being aggrieved by the
Appeal
Order Passed by Gujarat Real Estate Authority. The appellant
filed a complaint under section 44(1) of The Real Estate
(Regulation and Development) Act, 2016 before Gujarat Real
Estate Appellate Tribunal, Gandhinagar.
During 1994 to 1998 five societies were developed by

organizers. The Organizers and their authorized people have
sold the plots and have received full payment from the plot
holders.
Now SUDA (Surat urban Development Authorities) have
Facts of Case reserved the plots and therefore the plot holders were not
allotted the plots. The Organizers Promised the plot holder that
plot will be allotted once SUDA will withdraw the
reservation.In 2004 SUDA has removed the reservation, the
organizer has approved their layout plan in SUDA.
Subsequently, even after withdrawal of reservation the plots
113
Decision given by Gujarat Real Estate Appellate Tribunal, Gandhinagar in case of M/s Bhupatbhai
Kalyanbhai Vekariya V. Shivdhara Heights, Surat & Chairperson and Members of Gujarat Real Estate
Authority (fibota.com) (Accessed on 24th September 2022, 8.00pm)
128
were not allotted to plot holders and in fact, they were
categorically denied with replies that “Plot holder can complain
the matter in any government authorities”.
Further, the Plot holder came to know from reliable sources that
organizer have given the plots to Shiv Dara Developers for
Construction of high rise apartment.
Five plot holders have mutual filed FIR against the Organizer.
Contention of Further, complaint was filed before RERA Authorities for not
the Promoter giving the registration to Shiv dhara heights, issue of order for
stay construction and accordingly adjudicate the matter.
No specific contention mentioned in the Judgement. However,

following order
was passed by the Authorities: –
If Shiv Dhara Heights fulfills conditions under Real Estate

Regulation Development Act for registration, then it may be
registered.
Guj RERA has no power to stay construction of Shiv Dhara

Contention of
Heights under Real Estate Regulation Development Act, hence
the Department
stay cannot be granted.
Under the Real Estate Regulation Act, Adjudicating Officer is

Authorised to consider this matter. Guj. RERA is not authorized
to decide this matter. The Project is not yet registered. The claim
of complaint is pending in criminal court as well as in civil court
hence, no finding is required to be given by Guj RERA on this
issue.
Principle Laid
The tribunal agreed with finding mentioned in Sr. No.2 and 3.
down by
However, in the
Appellate
interest of justice the tribunal gave following directions to
Tribunal
129
RERA for issue no. 1 or registration to Shiv Dhara heights as
under: –
At the time of deciding the issue of registration for Shiv Dhara

Heights – Guj RERA shall give opportunity to the Appellant for
hearing and for submitting documents to prove his case. After
giving such opportunity GUJ Rera shall decide issue of
registration for Shiv Dhara Heights according to the provision of
law.
If during pendency and disposal of this appeal if project of Shiv

Dhara Height is registered with GUJ RERA, in that
circumstances GUJ RERA shall give opportunity to submit
objection to Appellant against the registration of project and
shall decide the objection according to Provision of Law.
Following Principle emerged from the decision114
Whether GUJ RERA should give opportunity to the complainant seeking non-
granting of RERA registration to a particular project on account of disputed
ownership of Land?
 Yes, as per the Principle laid down by Gujarat Real Estate Appellate
Tribunal, Gandhinagar in case of M/s Bhupatbhai Kalyanbhai Vekariya V.
Shivdhara Heights, Surat & Chairperson and Members of Gujarat Real Estate
Authority – GUJ RERA shall give opportunity to the complainant. In fact,
specific directions are given to GUJ RERA in the above mentioned wherein
the complainant must get sufficient opportunity to present its case before GUJ
RERA and accordingly registration should be granted within the Provisions
of Law.
114
Decision given by Gujarat Real Estate Appellate Tribunal, Gandhinagar in case of M/s Bhupatbhai
Kalyanbhai Vekariya V. Shivdhara Heights, Surat & Chairperson and Members of Gujarat Real Estate
Authority (fibota.com) (Accessed on 24th September 2022, 8.00pm)
130
Whether GUJ RERA can pass order for Stay construction? Or Whether GUJ RERA
can pass order when the case is pending before Civil court or criminal court?
No – GUJ RERA does not have authority to order for stay construction for any
project, also GUJ RERA cannot pass order when the case is pending before civil court
or criminal court, as per the Principle laid down by Gujarat Real Estate Appellate
Tribunal, Gandhinagar in case of M/s Bhupatbhai Kalyanbhai Vekariya V. Shivdhara
Heights, Surat & Chairperson and Members of Gujarat Real Estate Authority.
2.Gujarat Real Estate Regulatory ... vs Satyam Infracon on 9 March, 2021115
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/RERA APPEAL NO. 1 of 2020
With
CIVIL APPLICATION (FOR STAY) NO. 1 of 2020 In R/RERA APPEAL NO.

1 of 2020
RESPONDENT SUBMISSION
Learned Senior Advocates for the respondent No.1 submit that the respondent No.1
herein had preferred the Appeal No. 42 of 2020 under Section 44(1) of the Act,
challenging the order passed by the appellant herein dated 14.02.2020. Learned Senior
Advocates submit that the order impugned in the present appeal dated 07.09.2020
passed by the Appellate Tribunal has been challenged before this Court by
invoking Section 58 of the Act. According to learned Senior Advocates, the scheme of
the Act does not envisage the Authority being empowered or authorized to prefer an
appeal before the High Court against a decision passed by the Appellate Tribunal. In
support of such contention, learned Senior Advocates have taken this Court in detail
through the scheme of the Act. Learned Senior Advocates have invited attention of this
Court to Section 2(a) with regard to definition of the words "adjudicating
officer", Section 2(i) with regard to definition of the word "Authority", Section
2(p) with regard to definition of the words "competent authority", and Section
2(zg) with regard to definition of the word "Person".
115
Gujarat Real Estate Regulatory ... vs Satyam Infracon on 9 March, 2021 (indiankanoon.org)
131
Learned Senior Advocates by referring to the aforesaid definitions tried to draw
distinction that while the word "Authority" as per the definition of Section 2(i) means
the Real Estate Regulatory Authority established under sub-section (1) of Section 20.
According to Section 2(p) the words "competent authority" means a local authority
established under any law which exercises authority over land under its jurisdiction and
has powers to give permission for development of such immovable property. Learned
Senior Advocates sought to distinguish the word "Authority" and "competent authority"
and have submitted that in the definition of the word C/RERAA/1/2020 ORDER
"Person" at Section 2(zg), a person includes a competent authority, but does not include
"Authority".
Learned Senior Advocates thereafter took this Court to Section 44 which is with regard
to appeals to Appellate Tribunal. According to the learned Senior Advocates, Section
44(1) which is with regard to the right of preferring an appeal to the Appellate Tribunal
and whereas same even empowers a competent authority to challenge a decision of the
Authority. According to learned Senior Advocates the words "competent authority" and
"Authority" are clearly used to denote two separate entities, as per the definition,
inasmuch as the word "Authority" is the Real Estate Regulatory Authority and the word
"competent authority" is used to denote a local authority. Emphasizing on the use of
words to denote to separate entities, learned Senior Advocates took this Court
to Section 58 of the Act which is with regard to the right to appeal against an order of
the Appellate Tribunal to the High Court. Learned Senior Advocates have taken this
Court to sub- section (1) of Section 58 which reads as under :
"58(1) Any person aggrieved by any decision or order of the Appellate Tribunal, may,
file an appeal to the High Court, within a period of sixty days from the date of
communication of the decision or order of the Appellate Tribunal, to him, on any one
or more of the grounds specified in section 100 of the Code of Civil Procedure, 1908
(5 of 1908):116
116
132
Provided that the High Court may entertain the appeal after the expiry of the said period
of sixty days, if it is satisfied that the appellant was prevented by sufficient cause from
preferring the appeal in time."
According to the learned Senior Advocates, the right to prefer an appeal is granted by
the Act to a 'person' and whereas according to them, the word "Person" as defined
in Section 2(zg) does not include the 'Authority', but include 'competent authority'.
Thus, according to the C/RERAA/1/2020 ORDER learned Senior Advocates, while the
local authority can prefer an appeal to this Court by invoking the right available to it
under Section 58, but the said right, clearly, is not granted to the Real Estate Regulatory
Authority i.e. the 'Authority', therefore according to them, the 'Authority' is not
empowered to challenge an order passed by the Appellate Tribunal. Thus, according to
the learned Senior Advocates, the present appeal having been preferred by the
'Authority', and since Section 58 of the Act does not empower the 'Authority' to prefer
an appeal to the High Court against an order of the Appellate Tribunal, therefore the
present appeal would not be maintainable. Thus, submitting the learned Senior
Advocates requested this Court to dismiss the present appeal as not being
maintainable. 117
APPELLANT ARGUMENTS:
On the other hand, learned Senior Advocate Ms. Manisha Lavkumar for the appellant-
authority has strongly opposed the preliminary objection and has taken this Court to
various provisions of the Act in support of her contentions. Learned Senior Advocate
has drawn attention of this Court to the statement of objects and reasons of the Act and
has submitted that one of the main objects of the Act was to ensure effective protection
of the interest of consumers in real estate sector. She has thereafter took this Court
to Section 32 of the Act that is with regard the functions of Authority for promotion of
real estate sector which also inter alia speaks about the protection of interest of the
allottees. She has also taken this Court to Section 34 of the Act which is with regard to
functions of the Authority and Section 38 of the Act which is with regard to powers of
117
133
the Authority. Learned Senior Advocate thereafter took this Court to Section
2(o) which defines the word 'company' and whereas emphasis was laid on sub-section
(ii) of Section 2(o) which states regarding any public authority established by the
Government in this behalf under any law for the time being in force. Learned Senior
Advocate thereafter took this Court to definition of the word 'Person' at Section
2(zg) which also includes at Section 2(zg)(iii) a C/RERAA/1/2020 ORDER company,
thus according to her, the Real Estate Regulatory Authority being a pubic authority
established by the Government in this behalf, therefore the appellant herein falls under
the definition of the word 'company' as per Section 2(o) and whereas Section 2(zg) also
defines a person also to be a company and therefore according to her, the appeal would
fall under the definition of the word 'Person' who is also empowered to file an appeal
under Section 58 of the Act.
Learned Senior Advocate has also drawn attention of this Court to Section 20(2) of the
Act which is with regard to the authority inter alia being permitted to sue or to be sued.
Learned Senior Advocate submits that the paramount interest or consideration is with
securing the interest of consumers in real estate sector and for such an end, the Authority
is also empowered to file an appeal against any order passed by the Appellate Tribunal.
The words 'sue or be sued', according to the learned Senior Advocate, gives power and
authority to the 'Authority' to take into its ambit all litigations which has been or which
can be preferred by the Authority before the Appellate Tribunal or any forum
whatsoever, but albeit for the purpose of furthering the objects of the Act.
Learned Senior Advocate has further submitted that the Act invests varied functions
and powers in the Authority inasmuch as Section 32 of the Act mandates the Authority
with functions to promote the real estate sector and also to advise the Government in
matters relating to development of the said sector. Section 34 describes the functions of
the Authority which includes registering and regulating real estate projects and agents,
to maintain and publish a website of records, to maintain database, to fix through
regulations standard fees to be levied upon the allottees, prompter or real estate agent,
to ensure compliance of obligations cast upon promoters, allottees and real estate agent
and to ensure compliance of its C/RERAA/1/2020 ORDER regulations or orders or
directions made under the Act. Section 35 confers powers upon the Authority to call
information or to conduct investigation, Section 37 gives powers to Authority to issue
134
directions, Section 38 gives powers upon the Authority to impose penalty or
interest, Section 40 empowers recovery of interest or penalty and enforcement of
order, Section 43 directs the Government to establish an Appellate Tribunal, Section
43(5) empowers a person aggrieved by any direction or decision by the Authority or by
the adjudicating officer to prefer an appeal before the Appellate Tribunal, Section
44(1) empowers the Government or the competent authority or any person aggrieved
by any direction or decision of the Authority or the adjudicating officer to prefer an
appeal to the Appellate Tribunal, Section 53 states with regard to powers of the
Tribunal, Section 58 empowers a person aggrieved to approach the High Court against
any decision or order of the Appellate Tribunal, and Sections 59 to 72 state about
offences under the Act, penalties and adjudication. Thus, according to the learned
Senior Advocate, the Authority in this case is invested with vast and varied powers for
the purpose of fulfilling the objects of the Act and whereas unlike other quasi-judicial
authorities, the powers of the Authority is not restricted to decide the disputes only.
Learned Senior Advocate further submits that a term 'person aggrieved' in Section 58 of
the Act has to be considered in reference to the purpose and provisions of the Act and
whereas if any direction or decision of the Appellate Tribunal goes against the purpose
and object of the Act, then the Authority would be entitled to challenge the said decision
in furtherance of the functions of the Authority vested in it by Section 32 and Section
34 of the Act. Even otherwise according to the learned Senor Advocate, the provisions
of the statute have to be read harmoniously keeping in view the purpose and object of
the Act and by accepting the preliminary objection of the respondent, the powers of the
Authority would be grossly restricted which would ultimately hinder
the C/RERAA/1/2020 ORDER right of the Authority to carry out the duties and
functions vested upon it by the Act.
ORDER:
Thus, in the considered opinion of this Court, the questions raised hereinabove can be
answered as thus :
(i) The Authority would be included in the definition of 'Person' on a conjoint reading
of Section2(zg) and 2(o) of the Act; and C/RERAA/1/2020 ORDER
135
(ii) The Authority falling within the definition of the word 'Person' is therefore
empowered to challenge a decision of the Appellate Tribunal before the High Court
under Section 58 of the Act.
In view of the above findings, the preliminary objection raised by the respondent No.1
is rejected.118
118
136
CHAPTER-5: CONCLUSION& SUGGESTIONS
137
5.1 CONCLUSION:
The demonstration is a good shift in terms of increasing land area transparency,

increasing accountability of the advertising and engineers, and setting up qualified
forums for complaint assessment. As a result of the strict rules and guidelines in the
extremely terrible area, this will eventually result in lower case. Timely approvals and
transparency would also encourage more rapid development of both domestic and
foreign ventures, resulting in a reduction in the cost of entering the real estate market.
Even if it is a win-win situation for the architects and the buyers and would help the
region fill in the long run, the mistakes in the demonstration need to be urgently fixed.
Additionally, the demonstration cannot be successfully carried out unless the political
hesitation to carry it out is removed. Thus, the Demonstration needs regulative
changes by counselling the partners required as there is a tremendous extent of
progress combined with eliminating any irreconcilable situation that the political class
could have in the execution of the Demonstration.
India continues to be a developing nation with a consuming economy, so this region

may help shape local history. In this field, the RERA legislation is a success. The new
demonstration aims to establish a management system that would regulate agreements
between land buyers and sellers. When implemented successfully, RERA will
regularise the land area, which has a significant capacity for employment, not only for
designers, engineers, home decorators, and other professionals, but also for haphazard
construction projects. It will also support the current association government's goal of
providing housing to everyone continuously by the year 2022.
Home buyers face various issues including delays in possession, price escalations and
lack of accountability of the Builder. In 2016, Real Estate (Regulation and
Development) Act [‘RERA Act’] was enacted by the Central government to bring in
much-needed transparency in the real-estate sector. In the past five years of RERA, it
has been successful to tackle the issues between the Home Buyers and Builders or
Developers and providing transparency into the real-estate projects. Prior to
2016, Builders drafted the builder-buyer agreements which were heavily tilted towards
their benefits but after the enactment of RERA a lot has changed due to defined
guidelines by the central Act, but still, there is always a scope for development.
138
Prior to 2016, agreement concerning the sale of flat/unit/plot containing covenants
related to the payment schedule, size, amenities, timelines, etc., were executed but they
were largely unstructured and non-standardized with limited clarity on aspects related
to timelines, price escalation and changes in layout design. Post 2016, the RERA Act
brought in specific guidelines pertaining to these issues. This was intended to bring in
accountability and greater transparency, thereby building buyer confidence in the
market.
As a result, it is evident that the Real Estate (Regulation and Development) Act 2016
was necessary to support the growth of the Indian real estate industry; having uniform
real estate laws will improve the sector's operation and restore public confidence in it.
Given that it provides about 7% of India's GDP, this will benefit not only the people
but also the country's economy. Real estate's demise was a result of a lack of
regulation, which also to some extent abused homebuyers. The Act does a great job of
addressing the major issues, such as delayed possession, failure to reimburse an
advance payment with interest, and unfair contract terms. The Act also establishes a
framework for dispute resolution and sanctions against offenders. RERA Act has
attempted to bring in transparency and stability in the real estate market and it is
expected that the Act will facilitate further expansion of the same too.
5.2 SUGGESTIONS:
From my personal point of view,
The Real Estate (Regulation and Development) Act of 2016 is central legislation, and
states and UTs are free to create their own rules, resulting in a dilution of the law's
intent in many ways. The government should create centralised rules and allow the
states to implement the law through the establishment of an Authority and a Tribunal
with centralised regulation. This will result in a more consistent approach among
various authorities across the country, resulting in fewer mounting lawsuits.
The relief provided under Section 18 of the Act, namely refund of amount or interest
for delayed possession period, should be reconsidered in light of various factors such
as stage of construction, developer intention and commitment, and so on, to ensure
that there is no cash crunch to the project and that allottees receive their dream home.
139
To achieve the goal of social distancing in the future, the use of e platforms in all
operations, including dispute resolution and approval systems, must be increased.
Developers should be given enough space on the RERA website to promote their
marketing and other materials. The reduction in marketing costs and the restoration of
buyer confidence will undoubtedly benefit the real estate sector.
As of today, not all states and UTs have their own independent tribunal to settle
disputes between various stakeholders. The tribunal should be established in four
zones of the country, and with the help of an online mechanism for filing appeals and
hearing them, the assignment and disposition of appeals could be accomplished in an
efficient manner.
The fate of a nation's development is solely determined by the political will of its
elected representatives, i.e. the government, and the economic will of those who
perform activities, i.e. the people.
With the outbreak of COVID 19, our GDP is bound to suffer, as will people's
purchasing power. It is recommended that people be left with more money to help the
economy recover through a cycle of economic spending by the nation's citizens.
Government is defined as "of, by, and for the people." The Constitutional principles
so established necessitate war-like efforts on the part of the government to implement
liberal policies and regulations that result in lower compliance and higher per capita
productivity.
The importance of the real estate sector cannot be overstated because it is the second
largest contributor to GDP and provides employment opportunities to all segments of
the population, including skilled, semi-skilled, and unskilled workers.
India is still a home-hungry country, with nearly 10 lakh new houses needed each
year to keep up with population growth and the spread of the nuclear family system.
While reframing and revamping its policies and procedures, the government should
keep various factors in mind to ensure the affordability concept, timely completion of
projects, less compliance burden on developers, credit feeds to the industry,
transparent and time bound approval mechanism, and efficient regulatory mechanism.
140
5.3 BIBLIOGRAPHY
BOOKS:
 Real Estate - RERA (Regulation and Development) Act, 2016 - Latest 2022
Edition Paperback – 25 November 2021
 Real Estate (Regulation and Development) Act, 2016 [Act no. 16 of 2016] (A
Commentary & Digest) RERA Hardcover – 1 January 2019 by IAS (RETD.)
(CHAIRMAN HARYANA REAL ESTATE AUTHORITY GURUGRAM)
Dr. K.K. KHANDELWAL (Author), SIDDHARTH S.
KHANDELWAL (Author)
 The Real Estate (Regulation And Development) ACT, 2016 (2019-20
Session)
 RERA - Real Estate Regulation and Development Act, 2016 with Rules and
Allied Laws with Commentary - (English + Gujarati) 2021-22 Edition by
Najmuddin Meghani [Hardcover] Najmuddin Meghani [Hardcover]
Najmuddin Meghani
LEGISLATURES:
 Real Estate - RERA (Regulation and Development) Act, 2016

 Civil Procedure Code, 1908
 Criminal Procedure Code, 1973
 Transfer of Property Act, 1882
 Negotiable Instruments Act, 1881
JOURNALS :
 Supreme Court Cases

 Gujarat Law Herald (GLH)
 Gujarat Law Report(GLR)
 All India Reports (AIR)
ARTICLES:
 Drishti IAS Article on RERA Act, 2016, 2016 RERA Act, 2016 (drishtiias.com)
 Manupatra Articles 5TH July, 2022
141
NEWSPAPERS:
 BBC News Asia

 Gujarat Samachar
 Navgujarat Samay
 Divya Bhaskar
 Times of India
 Sandesh
WEBSITES:
 https://m.economictimes.com/wealth/real-estate/will-rera-impact-real-estate-
prices/articleshow/58577393.cms
 http://ignited.in/p/56819
 https://m.economictimes.com/wealth/real-estate/home-buyers-still-losers-as-
rera-sits-on-complaints/articleshow/66822054.cms
 https://en.m.wikipedia.org/wiki/Real_Estate_(Regulation_and_Development)_
Act,_2016
 https://www.99acres.com/articles/complaints-under-rera-a-comprehensive-
status-report.html
 https://www.charteredclub.com/rera/
 https://www.semanticscholar.org/paper/Real-Estate-Regulation-Act-
(RERA)%2C-2016%3A-and-Issues-Joshi-
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A DISSERTATION ON

AN ANALYTICAL STUDY ON WORKING OF REAL ESTATE

PREPARED BY: AADITYA SHAH

ACADEMIC YEAR: 2022

COURSE TITLE: IL-506 DISSERTION

INTEGRATED FIVE YEAR B.A.L.L.B PROGRAMME

NAME OF COLLEGE: GLS LAW COLLEGE

UNDER THE GUIDANCE OF:

DR. SUJA NAYAR

GLS LAW COLLEGE

GUIDE: DR.SUJA NAYAR DR. MAYURI PANDYA

ASSISTANT PROFESSOR DIRECTOR

GLS LAW COLLEGE GLS LAW COLLEGE

This dissertation is a presentation of my original research work. Wherever contributions of

PLACE: NAME OF STUDENT: AADITYA SHAH

DATE: ROLL NO: 106

GLS LAW COLLEGE

CHAPTER: 2 RESEARCH METHODOLOGY 28

CHAPTER: 3 LEGAL PERSPECTIVE OF RERA ACT, 38

CHAPTER: 4 JUDICIAL PERSPECTIVE OF RERA ACT, 96

CHAPTER: 5 CONCLUSIONS AND SUGGESTIONS 138

• ensure accountability towards allottees and protect their

• infuse transparency, ensure fair-play and reduce frauds & delays

• introduce professionalism and pan India standardization

• establish symmetry of information between the promoter and allottees

• imposing certain responsibilities on both promoter and allottees

• establish regulatory oversight mechanism to enforce contracts

• establish fast- track dispute resolution mechanism.

June 2013: Union Cabinet approves Real Estate Bill, 2013.

April 2015: Union Cabinet approves official amendments based on recommendations of

May 2015: Matter referred to the Select Committee of Rajya Sabha.

July, 2015: Report of Select Committee tabled in Rajya Sabha.

March 25, 2016: President gives assent to the Bill.

1.2 MEANING AND DEFINITION OF REAL ESTATE

Completion certificate- "completion certificate" means the completion certificate, or such

Occupancy certificate-"occupancy certificate" means the occupancy certificate, or such

RERA GUJARAT (GujRERA,2017)

1.3HISTORY OF RERA ACT, 2016

History of Real Estate Regulation Authority consist of 3 different aspects comprising:

1. A Model Act for Real Estate Regulation of Development, 2009.15

2. 2011 DRAFT BILL18

3. REAL ESTATE BILL, 201322

(a) Ensuring consumer protection and

Key functions of the RERA include:23

Real Estate Appellate Tribunal: A tribunal, consisting of a chairperson and two

Functions and duties of the promoter: The promoter must

1.4 FUNCTIONING OF RERA IN BRIEF PARTICULARLY IN

Functions of the RERA Authority:

FUNCTIONING OF THE AUTHORITY

1. Safeguards the interest of homebuyers and developers

1. Fortification of the promoter’s, builders’, allottees’, and estate agents’ interests;

1. Through particular books

2.1 SIGNIFICANCE OF THE STUDY

2.2 OBJECTIVES OF THE STUDY:

2.3 IMPORTANCE OF THE STUDY:

2.5 RESEARCH TOOLS AND TECHNIQUES:

1. Through particular books.

References taken into consideration while preparing the said Research: