Rera 2017

Real Estate
(Regulation &
Development)
Act,2016
Jain Dinesh Kumar & Associates LLP
Chartered Accountants
1

Index
Introduction
Purpose of the
RERA Act
Why to be RERA
compliant?
RERA
applicability
Registration
under RERA
Application for
Registration of
real estate
projects
Granting of
Registration by
the Authority
Extension of
registration
Revocation of
registration
Registration of
real estate
agents
Functions of
Real Estate
Agent
Functions and
Duties of
Promoter
Return of
amount and
compensation
Rights and
Duties of
Allottees
Responsibilities
of the
‘Regulatory
Authority’
Rajasthan Real
Estate
(Regulation &
Development)
Rules,2017
Allottees
Approval-
Requirements
Penalties
Role of a
Chartered
Accountant
2

Introduction
 This Act came into force on 1st May 2017.
 The Real Estate (Regulation and Development) Act 2016 (“RERA”)
seeks to protect the interests of home buyers and also boost
investments in the real estate sector.
 Every real estate project (where the total area to be developed
exceeds 500 sq. mtrs. or more than 8 apartments is proposed to be
developed in any phase), must be registered with its respective
state’s RERA.
 Existing projects where the completion certificate (CC) or occupancy
certificate (OC) has not been issued, are also required to comply with
the registration requirements under the Act.
 Developers/Agents shall not able to launch or advertise the project
before registration with RERA.
3

Purpose of the RERA Act
 To establish the Real Estate Regulatory Authority.
 Regulation and Promotion of the Real Estate Sector;
 To ensure sale of plot, apartment or buildings or sale of real estate
project in an efficient and transparent manner;
 To protect the interest of the consumers in real estate sector;
 To establish an adjudicating mechanism for speedy dispute reddressal
and to establish the Appellate Tribunal.
4

Why to be RERA compliant?
5
Prior
registration
Website
updation
Consent
from
allotees
Agreement
to be in
line with
the Act
Separate
registration
for each
phase
Quarterly
update on
RERA
website
Annual
Audit

RERA applicability
 A real estate project where the area of land proposed to be developed exceeding
above 500 square meters and more than 8 apartments/units (subject to
change as per State government’s official decision).
 The RERA extended to premises used for residential apartments and commercial
real estate projects (example: retail & hardware shops, eateries, warehouses,
financial institutions, entertainment and amusement centers etc.)
 For ongoing projects as on 1st May 2017, (date of notification of Section 3 of the
Act) all projects which have already received completion certificate are exempt
from registering under the Act.
 No applicable to redevelopment Real Estate projects where no new allotments are
to be made and renovation/ repair does not involve marketing, advertisement,
selling or allotment of any apartment, plot or building
* Please note that “applicability of RERA” is on a project wise and not on a developer.
6

Registration under RERA
 A promoter shall not 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, without registering the real estate project with
the Real Estate Regulatory Authority established.
 The projects that are ongoing on the date of commencement of this
Act and for which the completion certificate has not been issued, the
promoter shall make an application to the Authority for registration of
the said project within a period of three months from the date of
commencement of this Act .
7

Application for Registration of real
estate projects
•Applicant has to file an
application for registration
with RERA in prescribed form
along with prescribed fees
and documents (As per
Rajasthan RERA Rules, 2017,
additional documents required
to submitted).
Step 1
•Application for registration
must be either approved or
rejected within a period of 30
days from the date of
application by the RERA
Step 2 •On successful registration, the
promoter of the project will be
provided with a registration
number, a login id and password
for the applicant
Step 3
8

Granting of Registration by the
Authority
9
On receipt of the
application, the
Authority shall
within a period of
thirty days either
Grant registration -
providing a registration
number, including a Login Id
and password for accessing
the website and fill therein
the details of the proposed
project.
Reject the application for reasons
to be recorded in writing, if not as
per the provision of this act.
Application shall not be rejected
unless the applicant has been given
an opportunity of being heard

Extension of registration
 At the time of registration, a developer has to specify a time line
during which he will complete and handover the project to the buyer.
 If he fails to do so within the stated time, then his registration would
be revoked and his project would be usurped by the Regulator.
 Though an extension of registration may be granted at the sole
discretion of the regulator due to Force Majeure conditions or if there
are reasonable circumstances which merit extension not exceed a
period of one year.
*"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.
10

Revocation of registration
The Authority may, on receipt of a complaint or sue motto in this behalf or
on the recommendation of the competent authority, revoke the registration
granted, after being satisfied that—
 the promoter makes default in doing anything required by or under this
Act or the rules or the regulations made there under;
 the promoter violates any of the terms or conditions of the approval
given by the competent authority;
 the promoter is involved in any kind of unfair practice or irregularities.
The registration granted to the promoter 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.
11

Registration of real estate agents
 To bring in transparency and accountability, agents have also
been covered under the ambit of RERA and registration
requirement has been mandatory.
 A real estate agent shall not facilitate the sale or purchase of
any plot, apartment or building being the part of the real
estate project registered.
 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.
12

Functions of Real Estate Agent
 Every real estate agent which is not registered under RERA shall not
facilitate the sale or purchase of any plot, apartment or building, in a
real estate project or part of it, being sold by the promoter in any
planning area.
 Every real estate agent maintain and preserve such books of account,
records and documents as may prescribed.
 Every real estate agent not involve himself in any unfair trade
practices.
 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.
13

Functions and Duties of Promoter
Details to be entered
on RERA website
• Details of the registration
• Share the details of the
proposed project for public
viewing;
• Quarterly updates of list of
bookings of apartments, plot,
garages;
• Quarterly up to date status of
the project;
• Quarterly up to date list of
approvals taken and pending
approvals.
On booking and issue
of allotment letter
make available to
allotees the following
• Sanction plans, Layout Plans
along with specifications as
approved by the competent
authority;
• Stage wise time schedule of
completion of the project
The advertisement or
prospectus issued or
published by the promoter
shall mention prominently the
website address of the
Authority, wherein all details
of the registered project have
been entered and include the
registration number obtained
from the Authority and such
other matters incidental
thereto
14

 Promoter’s responsibilities:
 Be responsible for all obligations, responsibilities and functions as per the Act, rules,
regulations, agreement for sale to allottees or association of allottees;
 Obtain completion certificate and occupancy certificate from the competent authority and make
it available to allottees or association of allottees.
 Obtain lease certificate to the association of allottees where the project is developed on
leasehold land.
 Provide essential services on reasonable charges till taking over the maintenance of the project
by the association of allottees.
 Enable formation of association or society of allottees under the applicable laws within 3 months
of booking of majority of flats or plots.
 Execute the registration conveyance deed in favor of the allottee along with the undivided
proportionate title in the common areas to the association of allotees.
 Pay all outgoings for which collection was made from the allottees until transfer of physical
possession to allottees or association of allottees.
 Not mortgage or create charge on flat or plot or building after executing agreement for sale.
15

•The promoter is responsible for the veracity of all information contained in the advertisement and the
prospectus. In case of any loss sustained by any person due to false information contained therein, the
promoter is liable to make good the loss sustained due to the same.
Veracity of the advertisement or prospectus
•the promoter is not entitled to transfer or assign his majority rights and liabilities in the project to a third party,
without obtaining the prior written consent of two-third of allottees and the Regulatory Authority.
•In addition, for arriving at the number of two-third allottees, the number of apartments held by the promoter
will be excluded. Also, irrespective of the number of apartments held by an allottee he/she shall only be entitled
to one vote.
Transfer of the project to a third party
•, the promoter is required to seek an insurance of the real estate project towards title of the land and towards
construction of the project. However, the said section provides that this provision shall only come into effect
after and in the manner as may be notified by the appropriate Government.
Insurance of the real estate project
• Not accept a sum more than ten per cent of the cost of the apartment, plot, or building without entering into
agreement to sell.
No deposit or advance to be taken without entering into agreement for sale
16

Return of amount and
compensation
 If the promoter fails to complete or is unable to give possession of an apartment, plot or
building,—
 in accordance with the terms of the agreement for sale or, as the case may be, duly
completed by the date specified therein; or
 due to discontinuance of his business as a developer on account of suspension or
revocation of the registration under this Act or for any other reason,
He shall be liable on demand to the allottees, in case the allottee wishes to withdraw from the
project, without prejudice to any other remedy available, to return the amount received by him
in respect of that apartment, plot, building, as the case may be, with interest at such rate as
may be prescribed in this behalf including compensation in the manner as provided under this
Act. (As per Rajasthan RERA Rules, 2017 interest and compensation has to be paid within 45
days from the date on which such refund along with interest and compensation, becomes due.)
 Where an allottee does not intend to withdraw from the project, he shall be paid, by the
promoter, interest for every month of delay, till the handing over of the possession, at such rate
as may be prescribed.
 The promoter shall compensate the allottees in case of any loss caused to him due to defective
title of the land, on which the project is being developed or has been developed, in the manner
as provided under this Act, and the claim for compensation under this subsection shall not be
barred by limitation provided under any law for the time being in force.
17

Rights and Duties of Allottees
 He shall be entitled to obtain the information relating to sanctioned
plans, layout plans along with the specifications.
 He shall be entitled to know the stage-wise time schedule of project
completion along with the provisions for water, sanitation, electricity
and other amenities as per the agreement for sale.
 He shall be entitled to claim the possession of apartment, plot or
building, and the association of allottees shall be entitled to claim the
possession of the common areas.
 If the promoter unable to give the possession to the allottee, the
promoter will refund the amount paid by allottee along with interest.
 He shall be responsible to make necessary payments in the manner
and within the time as specified in the said agreement for sale.
18

Rights and Duties of Allottees
 The allottee shall be liable to pay interest, at such rate as may be
prescribed, for any delay in payment towards any amount or charges
to be paid
 Every allottee of the apartment, plot or building as the case may be,
shall participate towards the formation of an association or society or
cooperative society of the allottees, or a federation of the same.
 Every allottee shall take physical possession of the apartment, plot or
building as the case may be, within a period of two months of the
occupancy certificate issued for the said apartment, plot or building,
as the case may be.
 Every allottee shall participate towards registration of the conveyance
deed of the apartment, plot or building, as the case may be.
19

Responsibilities of the ‘Regulatory
Authority’
20
Renewal of
registration of
the real estate
agent and its
revocation
Extension of
registration of
the real estate
project and its
revocation
Registration of
the real estate
project and the
real estate
agent
To maintain a
website of
records for
public viewing
To appoint one
or more
‘adjudicating
officer’
Notify
Regulations
Recommendation
s for the growth
and promotion of
a healthy,
transparent,
efficient and
competitive real
estate sector

Rajasthan Real Estate
(Regulation &
Development) Rules,2017
Jain Dinesh Kumar & Associates LLP Chartered Accountants 21

Additional information and documents
required under RERA Rajasthan
 Copy of the PAN card of the promoter;
 Audited balance sheet of the promoter for the preceding
financial year;
 Number of parking areas example: open, basement, stilt,
mechanical parking etc. available in the said real estate
project;
 Copy of the legal title deed;
 Details of encumbrances on the land including any rights, title,
interest or name of any party in or over such land; and
 Consent of the owner of the land on which development is
proposed when promoter is not the owner.
22

Registration fee under RERA
Rajasthan Group Housing Projects
•Rs.5 per square meter if the area of land
proposed to be developed does not exceed 1000
square meters, or
proposed to be developed exceeds 1000 square
meter.
Mixed Development (Residential and
Commercial)
proposed to be developed does not exceeds 1000
square meters, or
proposed to be developed exceeds 1000 square
meters subject to maximum Rs 10 lakh
Commercial Projects
proposed to be developed does not exceeds 1000
square meters , or
•Rs.25 per square meter for commercial or any
other projects where the area of land proposed to
be developed exceeds 1000 square meters subject
to maximum Rs 10 lakh
Plotted Development Projects
•Rs. 5 per square meter but shall not
be more than Rs. 2 lakhJain Dinesh Kumar & Associates LLP
23

Forms under RERA Rajasthan
 Form J :- Intimation of Rejection of Application for registration of Real
Estate Agent/ Rejection of application for Renewal of Registration of Real
Estate Agent / Revocation of Registration of Real Estate Agent
 Form K :- Application for Renewal of Registration of Real Estate Agent
 Form L :- Renewal of Registration of Real Estate Agent
 Form M :- Appeal to Appellate Tribunal u/s 44 of the Real Estate
(Regulation & Development) Act, 2016
 Form N :- Complaint to the Real Estate Regulatory Authority u/s 31 of the
Real Estate (Regulation & Development) Act, 2016
 Form O :- Application to Adjudicating Officer
 Form P :- Annual Statement of Accounts
 Form Q :- Annual Report to be Prepared by the Authority
24

Allottees Approval- Requirements
 2/3rd of the allottees (by number) shall consent to
the changes.
 Obtain prior consent of allottees for making any
addition, alteration to the approved and sanctioned
plans.
 Even for any structural designs, specifications,
amenities, building specifications, common areas.
 Transfer of promoters rights and liabilities to a third
party
25

Penalties

Penalties for Promoter
Offence Penalties
Non-registration of a project 10% of estimated cost of real estate project
Not obeying orders or
directions in connection with
the above offence
Imprisonment up to 3 years with an or without
fine being 10% of the estimated cost of real
estate project
Providing false information etc.
and other conventions
5% of the estimated cost of real estate project
Contravention of any order of
the RERA
Penalty for every day of defaults which may
cumulatively extend up to 5% of the estimated
cost of real estate project
Contravention of the orders or
direction of the appellate
tribunal
Imprisonment up to 3 years with or without fine
which may cumulatively up to 5% of estimated
cost of real estate project.
27

Penalties for Agents
Offence Penalties
Contravention of the
applicable provisions of the
Act
Rs. 10,000 per day of defaults which may extend up
to 5% of the cost of the property
Contravention of the orders
or direction of the RERA
Penalty on a daily basis which may cumulatively
extend up to 5% of the estimated cost of the
property whose sale or purchase was facilitated
Contravention of the orders
or direction of appellate
tribunal
Imprisonment up to 1 year with without fine which
may extend up to 10% of estimated cost of project
28

Penalties for allotees
Offence Penalties
Contravention of any
order of the RERA
Penalty for the period during which defaults
continues which may cumulatively extend up to
5% of the apartment or building cost
Contravention of the
orders or direction of
appellate tribunal
Imprisonment up to 1 year with or without fine
for every day during which such defaults
continues, which may cumulatively extend up to
5% of the apartments or be building cost
29

Role of a Chartered Accountant
 To audit the books of accounts of the promoter.
 To verify & certify statement of accounts that the promoter has
utilized the amount collected for a specified project only.
 To verify & authorize that when promoter is withdrawing the amount
from the specified project bank account, it is in compliance with the
proportion to the percentage of completion of project.
 To act as an authorize representative for the applicant to present the
case before the Appellate Tribunal or the RERA, the adjudicating
authority.
 Act as an Consultant for Registration/Draftsman for
documentation/Advisory for judicial issues for the promoter.

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