AN OVERVIEW ON THE REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016

1. AN OVERVIEW ON
THE REAL ESTATE (REGULATION
AND DEVELOPMENT) ACT, 2016
G.S.Vivekmani

2. HISTORY
 Real Estate (Regulation and Development) Bill was introduced on 20.08.2013.
 The Bill got approval of the Rajya Sabha on 10 March 2016
 The Bill got approval of the Lok Sabha on 15 March 2016.
 The Assent of the President was received on the 25th March, 2016.
 The Act was published in the official Gazattee on 26.03.2016.
 The Act was notified to come into force on 01.05.2016 with respect to Sections 2, 20 to
39, 41 to 58, 71 to 78 and 81 to 92 (i.e., 59 out of 92 Sections)
 The remaining provisions are notified to come into force from 01.05.2017
In Tamilnadu
 The Rules was framed and notified on 22.06.2017 (Even though Act mandates framing of
Rules within 6 Months i.e., on or before 30.10.2016)
 Secretary to Government, HUD was designated as Authority on 22.06.2017.
 Tribunal was constituted on 22.12.2017
 Authority was constituted on 08.02.2019
 Authority framed Regulation on13.06.2018
 Appellate Tribunal framed Regulation on 25.03.2019
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3. NEED FOR RERA ACT
 Over the past few decades, the demand for housing has increased and taking advantage of
the situation, the private players have taken over the real estate sector with no concern
for the consumers.
 The consumers are unable to procure complete information or enforce accountability
against builders and developers in the absence of an effective mechanism in place.
 While this sector has grown significantly in recent years, it has been largely unregulated.
 There is a lack of adequate consumer protection. Though the Consumer Protection Act,
1986 is available, the recourse is only curative and is inadequate to address all the
concerns of buyers and promoters in that sector.
 At this juncture the need for the Real Estate (Regulation and Development) Bill is felt
badly to bring a preventive measure than a curative measure, for establishing an oversight
mechanism to enforce accountability of the Real Estate Sector and providing adjudication
machinery for speedy dispute redressal.
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4. PREAMBLE
An Act to
 establish the Real Estate Regulatory Authority for regulation and promotion of
the real estate sector and
 to ensure sale of plot, apartment or building, as the case may be, or sale of
real estate project, in an efficient and transparent manner and
 to protect the interest of consumers in the real estate sector and
 to establish an adjudicating mechanism for speedy dispute redressal and also
 to establish the Appellate Tribunal to hear appeals from the decisions,
directions or orders of the Real Estate Regulatory Authority and the
adjudicating officer
and for matters connected therewith or incidental thereto.
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5. STRUCTURE OF THE ACT
CHAPTER I – PRELIMINARY (Sections 1& 2)
CHAPTER II - REGISTRATION OF REAL ESTATE PROJECT AND REGISTRATION OF REAL ESTATE AGENTS
(Sections 3 to10)
CHAPTER III - FUNCTIONS AND DUTIES OF PROMOTER (Sections 11 to 18)
CHAPTER IV - RIGHTS AND DUTIES OF ALLOTTEES (Section 19)
CHAPTER V - THE REAL ESTATE REGULATORY AUTHORITY (Sections 20 to 40)
CHAPTER VI - CENTRAL ADVISORY COUNCIL (Sections 41 & 42)
CHAPTER VII - THE REAL ESTATE APPELLATE TRIBUNAL (Sections 43 to 58)
CHAPTER VIII- OFFENCES, PENALTIES AND ADJUDICATION (Sections 59 to 72)
CHAPTER IX - FINANCE, ACCOUNTS, AUDITS AND REPORTS (Sections 73 to 78)
CHAPTER X - MISCELLANEOUS (Sections 79 to 92)
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6. REAL ESTATE PROJECT
Section 2 (zn) defines Real Estate Project
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 apartment,
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;
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7. PRIOR REGISTRATION OF REAL ESTATE
PROJECTS WITH RERA
 Section 3 of the Act
“(1) 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, without
registering the real estate project with the Real Estate Regulatory Authority
established under this Act”
 Projects that are ongoing as on the date of commencement of this Act and for
which the completion certificate has not been issued, the promoter shall make an
application for registration of the said project within a period of three months from
the date of commencement of this Act.
 If Authority thinks necessary, in the interest of allottees, may direct the promoters
to register, for projects which are developed beyond the planning area but with the
requisite permission of the local authority and the provisions of this Act or the rules
and regulations made thereunder, shall apply to such projects from that stage of
registration.
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8. PLANNING AREA
(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;
In Tamilnadu:
Real Estate Regulatory Authority vide Circulat No.TNRERA/001/2017 dated
29.08.2017 had clarified that the Act is extended planning and all non-
planning areas in Tamilnadu.
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9. IS RERA REGISTRATION MANDATORY FOR ALL
REAL ESTATE PROJECTS?
The registration with RERA is not required, for the projects
 where the area of land proposed to be developed does not exceed five hundred
square meters or the number of apartments proposed to be developed does not
exceed eight inclusive of all phases. (Appropriate Government has power to reduce
the threshold)
 Where the 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,
as the case may be, under the real estate project.
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10. PROCESS FOR REGISTRATION OF RE PROJECT
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The Registration granted shall be valid for a period declared by the Promoter
Registration may be extended on a Application citing Force Majure. Provided Authority may in
reasonable circumstances (with no default on the part of Promoter) extend the registration.
In any case, the extension shall not exceed 1 year in aggregate.
If Authority fails to decide, project is deemed to have been registered
Within 7 days from the expiry of 30 days period, the Authority shall provide a registration number
with the Login ID and Password for accessing the website for the purpose of creating webpage and
fill in the details of the project.
On receipt, the Authority must decide the application within 30 Days
Grant Registration and provide a registration
number with the Login ID and Password for
accessing the website
Reject the application with reasons recorded in
writing. No rejection without opportunity
Promoter makes an Application to the Authority
Application must be accompanied with
documents listed in Section 4(2) of the Act
A Declaration supported by an Affidavit from the
Promoter providing specific details as per
Section 4 (2) (l) of the Act
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11. REVOCATION OF REGISTRATION
The Authority may
 on receipt of a compliant
 suo motu
 on recommendation of Competent Authoirty
revoke the registration of a RE Project, after being satisfied that, the promoter
 makes default in doing anything required by or under this Act or the rules or the regulations
made thereunder;
 violates any of the terms or conditions of the approval given by the competent authority;
 is involved in any kind of unfair practice or irregularities
 indulges in any fraudulent practices.
Before revocation, Authority shall issued a 30 days notice to the promoter stating the
ground and must consider any cause shown by the promoter.
Upon such revocation, Authority shall
 Shall debar the Promoter from accessing its website
 Add the promoter to the Defaulter List
 Inform RERA Authority of other states
 facilitate the remaining development works to be carried out
 Freeze the Bank Account and use the amount for the remaining development
 to protect the interest of allottees or in the public interest, issue such directions as it may deem necessary.
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12. REVOCATION OF REGISTRATION (CONT.)
Upon lapse of the registration or on revocation of the registration, the Authority, may
consult the appropriate Government to take such action 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
In case of revocation of registration of a project, the association of allottees shall have
the first right of refusal for carrying out of the remaining development works.
“Right of first refusal is a contractual right that gives its holder the option to enter a
business transaction with the owner of something, according to specified terms,
before the owner is entitled to enter into that transaction with a third party.”
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13. REAL ESTATE AGENT
Section 2(zm) defines Real Estate Agent
 Real estate agent means 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 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;
 Like Real Estate Project, the Real Estate Agent shall registered himself with
the Authority under Section 9 of the Act
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14. PROMOTER
Section 2 (zk) defines Promoter.
Promoter means,—
(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
(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, 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.
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15. RESPONSIBILITIES OF THE PROMOTER
 The promoter shall, upon receiving his Login Id and password, create his web page on
the website of the Authority and enter all details of the proposed project for public
viewing.
 details of the registration granted by the Authority;
 quarterly update
 the list of number and types of apartments or plots, booked;
 the list of number of garages booked;
 the list of approvals taken and the approvals which are pending subsequent to
commencement certificate;
 status of the project;
 The promoter at the time of the booking and issue of allotment letter shall make
available to the allottee documents such as
 sanctioned plans, layout plans, along with specifications, approved by the
competent authority
 the stage wise time schedule of completion of the project, including the
provisions for civic infrastructure like water, sanitation and electricity.
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16. RESPONSIBILITIES OF THE PROMOTER (CONT.)
 The Promoter shall be responsible
 To deposit 70% of the amount realised for RE Project in a separate Bank Account
 For all obligations, responsibilties and functions under the provisions of this Act or
to the allottees as per the agreement for sale, or to the association of allottees,
till the conveyance of all the apartments, plots or buildings, to the allottees, or
the common areas to the association of allottees or the competent authority.
 To obtain the completion certificate or the occupancy certificate, as applicable,
from the relevant competent authority and to make it available to the allottees
individually or to the association of allottees;
 For providing and maintaining the essential services, on reasonable charges, till
the taking over of the maintenance of the project by the association of the
allottees;
 To enable the formation of an association or society, of the allottees;
 To execute a registered conveyance deed of the apartment, plot or building, in
favour of the allottee along with the undivided proportionate title in the common
areas to the association of allottees or competent authority;
 To pay all outgoings until he transfers the physical possession of the real estate
project to the allottee or the associations of allottees
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17. RESPONSIBILITIES OF THE PROMOTER (CONT.)
 It is the obligation of the Promoter to
 To compensate the allotee who sustained any loss or damage due to incorrect or
false statement in the advertisement
 Enter into a Agreement of Sale in writing before taking advance from the Allottee
and the advance shall not be more than 10% of the cost of the Apartment
 Develop and complete the project as per the Sanctioned Plan and shall not make
alternation or modification to the Plan once the same was disclosed to a person
who agreed to take the apartment, without prior consent
 Take previous written consent of 2/3rd of the allottees before making any
alterations or addition to the Sanctioned Plan
 any structural or other defects or any defect in any obligation as per the
Agreement, which was brought to notice of the Promoter (within 5 years from the
date of handing over possession), rectify the same within 30 days.
 Not to transfer his majority rights and liabilities in a RE Project without prior
written consent of 2/3rd of the Allottees and Authority
 Insurance the RE Project and to transfer the same to the benefit of the allottees
or association of allottees
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18. ALLOTTEE
Section 2(d) of the Act defines Allottee
 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.
Lease (defined under TP Act):
Lease is defined as, a lease of immovable property is a transfer of a right to enjoy such property,
made for a certain time, express or implied, or in perpetuity, in consideration of price or promised,
or of money, a share of crops, service or any other thing, of value, to be rendered periodically or on
specified occasion to the transferor by the transferee who accepts the transfer on such terms.
Leasehold:
Legal right to live in or use a building or piece of land for an agreed period of time.
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19. ALLOTTEE
Interpretation of the definition “Allottee” in respect of Leasehold property:
Maharastra RERA has clarified (in answer to Question No. 6 in Additional FAQs issued by
MahaRERA), that the wording in Section 2(d) “has been sold (whether as freehold or
leasehold) or otherwise transferred by the promoter” indicates that the long-term lease
falls within the ambit of the Act. However, the premises given on leave and licence basis
or on short-term lease not exceeding five years are not covered under the Act. Hence, all
long-term leases (of more than five years) and perpetual leases will be covered under
the Act.
Further, in an Appeal filed by Lavasa Corporation against the order of Maharastra REAT,
the Bombay High Court had held that “Merely because the Legislature has excluded the
allotment, when it is given on rent, it does not exclude the long term lease like the
present one. That will be defeating and frustrating the object of the Act and hence, it has
to be held that the Appellate Tribunal has rightly held that, so far as the present case is
concerned, considering the long term lease of '999 years', it would definitely amount to
sale.”
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20. RIGHTS AND DUTIES OF THE ALLOTTEE
The Allotte shall be entitled:
 To obtain the information relating to sanctioned plans, layout plans along with the
specifications, approved by the competent authority
 To know stage-wise time schedule of completion of the project, including the
provisions for water, sanitation, electricity and other amenities and services as
agreed to between the promoter and the allottee
 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, as per the
declaration given by the promoter
 to claim the refund of amount paid along with interest and compensation from the
promoter, if the promoter fails to comply or is unable to give possession, in
accordance with the terms of agreement for sale or due to discontinuance of his
business as a developer on account of suspension or revocation of his registration
 To have the necessary documents and plans, including that of common areas, after
handing over the physical possession of the apartment or plot or building as the
case may be, by the promoter.
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21. RIGHTS AND DUTIES OF THE ALLOTTEE (CONT.)
The Allotte shall:
 Be responsible to make necessary payments within the time as agreed
 Be liable to pay interest for any delay in payment
 participate towards the formation of an association or society of the allottees.
 take physical possession of the apartment, plot or building, within a period of two
months of the occupancy certificate issued for the said apartment, plot or building.
 participate towards registration of the conveyance deed of the apartment, plot or
building.
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22. REAL ESTATE REGULATORY AUTHORITY
Establishment
 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.
 The Act came into force on 01.05.2016 which mandates the appropriate Government to
establish the Authority on or before 30.04.2017. In Tamilnadu, the Authoirty was established
and made functional from 08.02.2019 vide G.O.No.23.
Character
The Authority
 a body corporate by the name aforesaid
 has perpetual succession
 a common seal
 power to acquire, hold and dispose of property, both movable and immovable
 to contract
 To sue or be sued.
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23. REAL ESTATE REGULATORY AUTHORITY
Composition
 Authority shall consist of a Chairperson and not less than two whole time members
 Appointments to be made by the Appropriate Government on recommendation of
Selection Committee consisting of CJ of HC or his nominee, Secretary of the
Department dealing with Housing and Law Secretary
 Chairman must have adequate knowledge and professional experience of atleast 25
years
 Member must have adequate knowledge and professional experience of atleast 15
years
Term of Office
 The term of office for both Chairperson and Member is 5 years from the date on
which they entire office or until they attain the age of 65 whichever is earlier
 No Re-appointment permitted
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24. REAL ESTATE REGULATORY AUTHORITY
Removal
 The appropriate Government may remove from office the Chairperson or other
Members, if the Chairperson or such other Member—
a) has been adjudged as an insolvent; or
b) has been convicted of an offence, involving moral turpitude; or
c) has become physically or mentally incapable of acting as a Member; or
d) has acquired such financial or other interest as is likely to affect prejudicially
his functions; or
e) has so abused his position as to render his continuance in office prejudicial
to the public interest.
Vacancy
 Chairperson or Member, may—
a) relinquish his office by giving in writing, to the appropriate Government,
notice of not less than three months; or
b) be removed from his office
Any vacancy shall be filled-up within a period of three months from the date on which
such vacancy occurs.
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25. REAL ESTATE REGULATORY AUTHORITY
Filing and Disposal of Complaints
 (Sec 31) Any aggrieved person may file a complaint with the Authority or the
adjudicating officer, as the case may be, for any violation or contravention of the
provisions of this Act or the rules and regulations made thereunder against any
promoter allottee or real estate agent. (Adjudicating officer is an officer appointed for
the purpose of adjudicating compensation under Section 12, 14, 18 and 19 of the Act)
 The Authority shall follow summary procedure for inquiry in the following manner:
 issue a notice to the respondent; specify a date and time for further hearing;
 At hearing, explain to the respondent about the contravention alleged to have
been committed and if the respondent
- pleads guilty, the Authority shall record the plea, and pass orders
including imposition of penalty as it thinks fit;
- does not plead guilty and contests the complaint, the Authority shall
demand an explanation;
 In case the Authority is satisfied on the basis of the submissions made that the
complaint does not require any further inquiry, it may dismiss the complaint;
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26. REAL ESTATE REGULATORY AUTHORITY
 In case the Authority is satisfied on the basis of the submissions made that the
there is need for further hearing into the complaint, it may order production of
documents or other evidence and proceed to hear the complaint;
 If any person fails, neglects or refuses to appear, or present himself as
required before the Authority, the Authority shall have the power to proceed with
the inquiry in the absence of such person or persons after recording the
reasons for doing so.
Function of the Authority:
 to register and regulate real estate projects and real estate agents registered
under this Act;
 to publish and maintain a website of records, for public viewing, of all real
estate projects for which registration;
 to maintain a database, on its website, for public viewing
 enter the names and photographs of promoters as defaulters including the project
details, revoked registration, for access to the general public;
 enter the names and photograhps of real estate agents who have applied and registered,
including those whose registration has been rejected or revoked;
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27. REAL ESTATE REGULATORY AUTHORITY
 to ensure compliance of the obligations cast upon the promoters, the allottees
and the real estate agents;
 to ensure compliance of its regulations or orders or directions made in exercise
of its powers under this Act;
 to perform such other functions as may be entrusted to the Authority by the
appropriate Government
Other Advisory Functions of the Authority
 The Authority in order to facilitate the growth and promotion of a healthy,
transparent, efficient and competitive real estate sector, makes recommendation to
the AG
 Gives opinion on reference made by AG in formulating policy on RE sector
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28. REAL ESTATE REGULATORY AUTHORITY
Powers of the Authority
 Call for information or records from Promoter or allottee or RE Agent to make
inquiry into their affairs, either on a compliant or Suo Motu
 To conduct investigation
 Shall have same power as Civil Court vested through CPC while trying a Suit for
the purpose of making investigation
 To issue interim orders, without notice
 To issue directions for the purpose of discharging its functions
 To impose penality or interest for contravention of obligation casted on
Promoter or Allottee or RE Agent under the Act
 Review its own order, if the mistake is apparent from the records (within 2
years)
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29. THE REAL ESTATE APPELLATE TRIBUNAL
Establishment
 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.
 The Act came into force on 01.05.2016 which mandates the appropriate
Government to establish the Authority on or before 30.04.2017. In Tamilnadu, the
Appellate Tribunal was established and made functional from 22.12.2017 vide
G.O.No.201.
Composition
 Appellate Tribunal shall consist of a Chairperson and not less than two whole
time members of which one shall be a Judicial Member
 Appointments to be made by the Appropriate Government in consultation with
CJ of HC for the post of Chairperson and on recommendation of Selection
Committee consisting of CJ of HC or his nominee, Secretary of the Department
dealing with Housing and Law Secretary for the post of other members
 Qualification for the post of Chairperson - is or has been a Judge of HC
 Qualification for Judicial Member – Advocate with atleast 25 years experience in
RE or held Judicial Office for 15 years or a member of Indian Legal Service
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30. THE REAL ESTATE APPELLATE TRIBUNAL
Term of Office
 The term of office for both Chairperson and Member is 5 years from the date on which they entire
office or until, in case of Chairperson, attain the age of 67 or in case of Member, attains the age of 65,
whichever is earlier
 No Re-appointment permitted
Removal
 The appropriate Government, in consultation with CJ, may remove from office the Chairperson or other
Members, if the Chairperson or such other Member—
a) has been adjudged as an insolvent; or
b) has been convicted of an offence which, in the opinion of the appropriate
Government involving moral turpitude; or
c) has become physically or mentally incapable; or
d) has acquired such financial or other interest as is likely to affect prejudicially
his functions; or
e) has so abused his position as to render his continuance in office prejudicial
to the public interest.
Vacancy
 Chairperson or Member, may—
a) relinquish his office by giving in writing, to the appropriate Government, notice of not less than
three months; or
b) be removed from his office
Any vacancy shall be filled-up within a period of three months from the date on which such vacancy
occurs.
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31. THE REAL ESTATE APPELLATE TRIBUNAL
Appeals:
 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
 When a promoter files an appeal with the Appellate Tribunal, it shall not be
entertained, unless a deposit of atleast 30% of the penalty, or such higher
percentage 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, with the Appellate Tribunal, before the said appeal is
heard.
 Every Appeal shall be preferred within a period of 60 days from the date of
receipt of the order copy. (Proviso - condone delay provided)
 Appellate Tribunal shall dispose of the Appeal as expeditiously as possible
and endeavour shall be made to dispose of within a period of 60 days.
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32. THE REAL ESTATE APPELLATE TRIBUNAL
Powers of the Appellate Tribunal:
 Appellate Tribunal shall have power to regulate its own procedure
 Appellate Tribunal is not bound by the procedure laid down by CPC, but shall be
guided by principle of Natural Justice
 Appellate Tribunal is not bound by the Rules of Evidence contained in Indian
Evidence Act, 1872
 Appellate Tribunal shall have, for the purpose of discharging its functions
under this Act, the same powers as are vested in a civil court under the Code of
Civil Procedure, 1908 for
 summoning and enforcing the attendance of any person and examining him
on oath;
 requiring the discovery and production of documents;
 receiving evidence on affidavits;
 issuing commissions for the examinations of witnesses or documents;
 reviewing its decisions;
 dismissing an application for default or directing it ex parte; and
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33. THE REAL ESTATE APPELLATE TRIBUNAL
Order of the Appellate Tribunal
 Every order made by the Appellate Tribunal under this Act shall be executable
as a decree of civil court, and for this purpose, the Appellate Tribunal shall have all the
powers of a civil court.
 The Appellate Tribunal may transmit any order made by it 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.
Appeal against the order of Appellate Tribunal
 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, on any one or more of the grounds specified in Section 100 of the
Code of Civil Procedure, 1908 (Proviso to condone delay provided)
 No appeal shall lie against any decision or order made by the Appellate Tribunal with
the consent of the parties.
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34. OFFENCES AND PENALTIES
Offences Penalties
If any promoter contravenes the provisions of
section 3 (Bar to advertise, sell, promote etc of a
RE Project without Registration) – Sec 59 (1)
Penalty which may extend up to 10% of the estimated cost of
the real estate project as determined by the Authority
Failure to comply with above order or continues
to violate the provision of Sec 3 – Sec 59(2)
Punishable with imprisonment for a term which may extend
up to three years or with fine which may extend up to a
further 10% of the estimated cost of the real estate project, or
with both.
If any promoter provides false information or
contravenes the provisions of section 4
(Registration of RE Project) – Sec 60
Penalty which may extend up to 5% of the estimated
cost of the real estate project as determined by the Authority
If any promoter contravenes any other provisions
of this Act, other than that Section 3 or 4 – Sec 61
Penalty which may extend up to 5% of the estimated cost of
the real estate project as determined by the Authority.
If any promoter, who fails to comply with, or
contravenes any of the orders or directions of
the Authority – Sec 63
Penalty for every day during which such default continues,
which may cumulatively extend up to 5% of the estimated
cost of the real estate project as determined by the Authority.
If any promoter, who fails to comply with, or
contravenes any of the orders, decisions or
directions of the Appellate Tribunal – Sec 64
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 10%
of the estimated cost of the real estate project, or with both.
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35. OFFENCES AND PENALTIES
Offences Penalties
If any real estate agent fails to
comply with or contravenes the
provisions of section 9 or 10 –
Sec 62
Penalty of Rs.10,000/- for every day during which such default continues,
which may cumulatively extend up to 5% 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.
If any real estate agent, who fails
to comply with, or contravenes
any of the orders or directions
of the Authority – Sec 65
Penalty for every day during which such default continues, which may
cumulatively extend up to 5% 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
If any real estate agent, who fails
to comply with, or contravenes
any of the orders, decisions or
directions of the Appellate
Tribunal – Sec 66
Punishable with imprisonment for a term which may extend up to 1 year or
with fine for every day during which such default continues, which may
cumulatively extend up to 10% 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.
If any allottee, who fails to
comply with, or contravenes any
of the orders, decisions or
directions of the Authority - Sec
67
Penalty for the period during which such default continues, which may
cumulatively extend up to 5% of the plot, apartment or building cost, as the
case may be, as determined by the Authority.
If any allottee, who fails to
comply with, or contravenes any
of the orders or directions of
the Appellate Tribunal – Sec 68
Punishable with imprisonment for a term which may extend up to 1 year or
with fine for every day during which such default continues, which may
cumulatively extend up to 10% of the plot, apartment or building cost, as the
case may be, or with both.
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36. COMPOUNDING OF OFFENCES
Offences Money to be paid for Compounding the
Offence
Imprisonment under Sub Section
(2) of Section 59
upto 10% of the estimated cost of the real estate
project
Imprisonment under Section 64
upto 10% of the estimated cost of the real estate
project
Imprisonment under Section 66
upto 10% of the estimated cost of the plot,
apartment or building, as the case may be, of the
real estate project, for which the sale or purchase
has been facilitated.
Imprisonment under Section 68
upto 10% of the estimated cost of the plot,
apartment or building, as the case may be
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37. ADJUDICATING OFFICER
 For the purpose of adjudicating the compensation provided under Sections
12, 14, 18 and 19, the Authority appoints a judicial officer who, is or has been
a District Judge in consultation with the Appropriate Government
 Section 12 - Person affected by incorrect, false statement contained in the notice,
advertisement or prospectus
 Section 14 – Rectification of defects within 30 days
 Section 18 – Failure to complete the project; loss caused due to defective title;
failure to discharge obligation under the Act or terms and conditions of the Sale
Agreement
 Section 19 - Failure to complete the project or is unable to give possession due to
suspension or revocation of registration
 The Adjudicating Officer shall dispose of the application as expeditiously as
possible, within a period of sixty days from the date of receipt of the
application
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38. ADJUDICATING OFFICER
 Compliant pending before the Consumer Forum which are covered under
Section 12, 14, 18 and 19 of the Act, on or before the commencement of this
Act, may at the instances of the Complainant, with the permission of the
Forum or Commission, be withdrawn and file an application before the
Adjudicating Officer.
Factors to be taken into account
 While determining the quantum of compensation or interest, the Officer
shall consider:
 the amount of disproportionate gain or unfair advantage, wherever quantifiable,
made as a result of the default;
 the amount of loss caused as a result of the default;
 the repetitive nature of the default;
 such other factors which the adjudicating officer considers necessary to the case
in furtherance of justice.
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39. OTHER RELEVANT PROVISION
 Section 79 – Bar of Jurisdiction – No civil court shall have jurisdiction
 Section 80 – Cognizance of Office – No court shall take cognizance of the
officer unless on a complaint in writing by the Authority – No court inferior
to that MM or JM of FC shall try any offences under the Act
 Section 84 – Rule making power to the AG
 Section 85 – Power to make Regulation – Authority shall within a period of
3 months of its establishment, makes Regulation
 Section 87 – Chairperson, Member, other officers and employees of
Authority, Appellate Tribunal and Adjudicating Officer shall deemed to be
Public Servant
 Section 90 – Protection against action taken on good faith
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40. PROS AND CONS
Pros:
 Compulsory Registration
 Complete Transparency (Mandates making all available online, Carpet Area)
 No misleading claims or advertisements (Filing of Declaration and Affidavit)
 Money Management (Deposit of 70%, in Tamilnadu 100%)
 Warranty (5 Years)
 Mechanism for Speedy disposal
Cons:
 Adverse Effect on Demand Supply Gap
 No regulation on Government Agency for issuance of timely approvals and
other certificates
 No regulation for projects below 500 Sq.Mt
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41. ACTION TAKEN DUE TO COVID-19
The TN RERA has issued a Circular dated 06.04.2020:
 All registrations which are valid as on 01.02.2020 are extended automatically upto
30.06.2020 in view of the Covid-19 pandemic and consequential force majeure.
 Completion period of all the registered project is extended by 5 months.
 The validity of the registration will also be coterminous with revised completion
date.
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43. 43Giridhar & Sai