Is it mandatory to have RERA registration for Builders?

calendar21 Aug, 2020
timeReading Time: 3 Minutes

The Real Estate Regulation & Development Act was brought in India in May 2016 after a decade of real estate being tormented at the hands of the powerful builders. Now, the RERA Act[1] mandates all the ongoing and new RERA projects to register with respective RERA Authorities under the ambit of Section-3 of the Act.

In the case of the non-registration, they will attract penalties under Section-59 of the Act. It is mandatory to have RERA registration for builders of the real estate projects with RERA Authorities. In case they fail to comply with the quarterly compliance as mandated under the Act and Rules, they may have to face complaint filing against them.

Benefits of RERA Registration for builders

  • The buyers are expected to occupy a residence within 2 months of the Occupation Certificate. This is good news for builders as it reduces unoccupied properties.
  • Lenders will be more willing to provide a flow of money to the builders due to renewed faith and transparency provided by RERA norms.
  • RERA mandates the regular payments from the buyers, including registration fees, maintenance charges, taxes, installment payments, water and electricity charges, etc. There is a relief to builders who often used to bear defaulted payments from the homebuyers.
  • The real estate sector is more organized as there will be less fraudulent and unreliable builders who made the sector otherwise unorganized. Such cleaning will increase buyer trust in the builders, and the credibility of all registered developers will increase.
  • There will be fewer incidents of insolvency and bankruptcy in builders, as 70% of the funds will be correctly engaged in the project and not moved around for other projects.

Read our article:Penalties under RERA on Builders and Agents

How can a builder register under RERA?

builder register under RERA
  1. Fill an application form for registration along with required documents and registration fees. The fees calculated on the basis of project type and the square meters (detailed fee structure is mentioned on RERA websites).
  2. After the application, builders will receive a RERA registration number, which is to be displayed in every advertisement of projects.
  3. The process of granting RERA registration for builders may take up to 30 days.
  4. The project can receive an extension in case of natural calamities or any other case if deemed reasonable by RERA (the extended period is usually 1 year).
  5. RERA holds the right to cancel the RERA registration for builders if he defaults, violates the laws, misrepresents facts, conducts unfair practices, or falsely advertises services.

Documents needed for RERA Registration for builders

Each state has its requirements for which the state government maintains RERA websites where one can find exact specifics. However, the commonly needed documents for RERA registration for builders.

  • Authenticated copy of a PAN Card
  • Photograph, contact details, address of the builder
  • Builder’s Income Tax Returns of the last 3 years and balance sheet
  • Legal title deed attested by the Advocate
  • In cases where a builder is not the landowner, any agreements made between the owner and the builder are done with the owner’s consent letter
  • Documents related to the project such as sanctioned plan, floor plans, proposed plan, parking area arrangements, carpet area, TDI and FSI details, proposed numbers of buildings/wings, the aggregate area of the open common spaces
  • Architecture and Design Standards, Type of Construction Technology, Earthquake Resistant Measures
  • Name and number of contractors, architects, engineers, and any other professionals involved in the construction
  • Details of the total duration of the project and completion date

Penalties imposed by RERA on builders

  • The non-registration penalty is10% of the estimated cost of the project. Further non-compliance with respect to registration may lead to imprisonment for three years, with or without a fine.
  • False presentation of information is penalized at 5% of the total cost of the project.
  • Non-compliance or contravention of any RERA order is calculated based on defaulted days and may add up to 5% of the project’s cost.
  • Not abiding by the Appellate Tribunal’s decision may lead to imprisonment of three years with or without a fine, leading up to 5% of the project’s total cost.


This is a misconceived notion among buyers and even builders that a complaint can only be filed against a registered project. The law under its ambit is very specific, and it nowhere mentions a co-relation between both. Many RERA Authorities have even passed landmark judgments clarifying this point of law for buyers and builders that RERA Registration and complaint filling have nothing to do with each other.

An aggrieved homebuyer can file the RERA complaints against any of the builder before the appropriate RERA Authority. At Corpbiz, we help our clients to obtain RERA registration and also help them in RERA complaints with the proper guidance for the same.

Read our article:How one can save the project from Rejection by RERA Authority

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