The government of India has decided that a time has come where the real estate property seekers in India must be saved from the exploitation by the promoters. The promoters, also known as builders, are doing good to the real estate sector in India. This RERA sector is considered as one of the most important economic interests for people in developed countries whereas, in India, it is seen as a blot in the economy.
We are here to help and guide the RERA registration for promoters so that people can gain trust in them. In India, there is a requirement to decrease the gap between the buyer and the promoter so that the future can be seen in the real estate sector as in most transparent and disciplined way.
Overview for RERA registration for Promoters
The real estate helps with the growth of India economically in other sectors, but the rich builders’ greed has also gone up. For their own personal profits, many promoters seek unethical and cunning ways to make money from a middle-class people, who innocently gives away his whole life’s income to own a house for himself and his family.
In return for this, the middle-class buyers get delayed possession of their flats, faulty societies and have to face other such problems. Many promoters often forget that money is not an individual luxury, but it comes with many responsibilities towards the society.
However, the good thing for the buyers is that at least the government has developed this conscience and has formed a body called as RERA (Real Estate Regulatory and Authority) under the Real Estate Authority Bill 2016. This body has started from scratch and lay down the most basic rules which are always the most important.
The law after RERA as the guidelines of this policy brings coordination between the buyer and the promoter. These guidelines mention several laws which are for the registration and functions of a promoter. One of the fascinating aspects of RERA is that it will also overcome the problems which promoters have to face due to the late approval of their projects by which they often force go for unfair methods to save the enormous amount of money they have invested.
Read our article:Everything You Need to Know Regarding the RERA
Process of RERA registration for Promoters
- The promoters will make an application to get registered with RERA. This application must be submitted in its respective RERA’s body within three months of RERA being made in that particular state.
- Along with the application, the promoter has to submit his personal information and his project information. He also has to submit documents related to projects launched by him of that the last five years. All this is required so that RERA can keep an official record of all his documents which should be made public. These all will be uploaded on the RERA India website along with the promoter’s photograph.
- The builders who will follow the norms must not find any difficulty in getting registered with RERA. In fact, this will actually make them happy as now good promoters can now be differentiated from the bad ones. Earlier there were many of the good ones had to suffer due to the faults made by other builders.
- The authority has also become more proactive by now, if the authority doesn’t approve or rejects an application within period of one month of its submission or if also does not give clear reasons on what ground a promoter’s application has got rejected, then the promoter will get registered in RERA automatically.
- Once they get registered, all the information of a promoter will be uploaded on the RERA website. The promoter will also be provided a login ID where he can update his projects’ details for the awareness of the general public. The list of defaulters will also be uploaded on this website. Therefore, the promoters can’t have any other way than doing the right thing.
Requirement of RERA registration for Promoters
- The fair promoters are can now easily be distinguished from the unfair ones. This is a basic thing, but its effect must be magnanimous in the eyes of the public as each person looks to own an affordable house. The buyer now can easily develop trust on a builder who has a government stamp on its honesty.
- This is also good for a promoter as well, as now he would not have to worry about the government approval. The promoter can focus on providing superior quality homes to people in the scheduled time.
New rules under RERA, which the promoters have to know
- Rigidity in Change of a plan – Promoter can now only change a project’s plan which has been registered with the two-third majority of a buyer of the project. To make an easy flow in this regard, it has to make sure a proper discussion goes with buyers and the builder.
- Safekeeping Funds – A promoter has to keep at least 50% of the funds generated by the selling of houses of project in the project’s bank account. This will further ensure a buyer to trust a builder, the government itself will look into the cause for delaying projects or the promoter declaring lack of funds. The interest paid by the promoter and the buyer is delaying giving money and the house respectively will be given equally.
- Functions of a Promoter – The duties and functions of the promoter have been increased as now they have to give the buyer every document and a buyer must have to sign while making an agreement. He has the responsibility of the services he provides until a local body is formed with the society. Promoter will also have to get two-third majority in case he thinks to transfer the project to someone else.
Penalties prescribed under the RERA Act
|Offenses in the case of Promoters||Prescribed Penalty|
|Non-registration of the projects||10 percent of the project’s total estimated cost|
|Providing untrue and false information||5 percent of the project’s total estimated cost|
|Infringement of the prescribed laws||Imprisonment for three years, or a fine of 10 percent of the total estimated cost of the concerned property, or even both|
The buyers and the promoters must also aware of the Central Advisory Council and the Real Estate Appellate Tribunal which are formed alongside RERA for the buyers’ confidence in the promoters and also for the penalties or punishments that the promoter has to face if he does any deed of misconduct.
Read our article:RERA Complaint or Consumer forum (NCDRC): Which is better?