Articles

The Article provides all the important information on the following points:

The revocation of the registration by the Regulatory Authority and the renewal of the registration application by the promoter application is dealt in a separate article by PropertyBazaar.com.

Section 3 of the Real Estate (Regulation and Development) Act, 2016 mandates prior registration of the real estate project with the Real Estate Regulatory Authority. No promoter shall advertise , market , book or sell any plot , apartment or building without registering the real estate project with the Real Estate Regulatory Authority. Projects in the 'planning area' are covered under the Act , however certain projects even outside the planning area may be directed to be registered with the Regulatory Authority. "Planning Area" has been defined in the Act and means the following as may be designated by the appropriate government or the competent authority under the law relating to Town and Country Planning for the time being and as revised from time to time:

a. a planning area, or

b. a development area, or

c. a local planning area, or

d. a regional development plan area, or

e. any other area specified as above, or

f. any area designated for future planned development.

 

In respect of the projects ongoing on the date of commencement of this Act and for which the completion certificate has not been issued, the promoter is required to make an application to the Authority for registration of the project within 3 months from the date of commencement of the Act. The application is accompanied by such registration fee as is prescribed by the respective State rules.

Section 4 of the Act deals with the manner of making an application for registration of projects as required to be registered under Section 3 of the Act. The Authority is required to operationalise a web based online system for submitting applications for registration of projects within a period of one year from the date of its establishment. The promoter is supposed to enclose the documents along with the application which shows his company details as well as brief details of the projects launched by him in the past five years whether already completed or being developed, any delay in the completion of projects, details of cases pending, details of type of land and payments pending. Apart from these documents, the promoter needs to enclose the documents for the specific project for which he seeks the registration. These documents include the ones that mention about 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 along with the local details of the project with clear demarcation of the land dedicated for the project along with its boundaries. The application should also have the proposed facilities to be provided such as fire fighting facilities, emergency evacuation, drinking water facilities etc. Proforma of the allotment letter, agreement for sale and the conveyance deed proposed to be signed with the allottees should also accompany the application. The application should also mentions the number, type, the carpet area, verandah area, exclusive open terrace area, if any. Apart from this, it should essentially have names and addresses of the contractors, architect, structural engineer or any other person concerned with the real estate project.

 

a. Those real estate projects in which the area of land proposed to be developed does not exceed 500 square meters or number of apartments proposed to be developed do not exceed 8 inclusive of all phases . But if the government finds it necessary , it may reduce the limit below 500 sq. meters or 8 apartments.

b. Those real estate projects in respect of which the promoter has received completion certificate for a real estate project prior to the 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. 

The projects which were 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 3 months from the date of commencement of the Act. A promoter can advertise his project for sale after the project has been registered with the Regulatory Authority.

 

The Act provides that 70% 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. The amount so deposited is to be used to cover the cost of construction and the land cost and shall be used only for that purpose and the amount can be withdrawn only after it is certified by an engineer, an architect and the chartered accountant that the withdrawal is in proportion to the percentage of completion of the project. The promoter is required to get his account audited within 6 months after the end of every financial year by the Chartered Accountant. The remaining 30% of the amount realised shall remain with the promoter which would be to the benefit of the promoter. This way Section 4 balances rights of promoter and the allottee.

 

The application filed for the registration of the proposed real estate project must have a

declaration from the promoter supported by an affidavit. The affidavit should state :

That the promoter has a legal title to the land on which development is proposed along with legally valid documents , that the land is free from all encumbrances , the time period within which he undertakes to complete the project etc.

After receiving the application , the authority is required to grant the registration within 30 days subject to other provisions of the Act. The authority has to provide a registration number, Login Id and the password to the applicant for accessing the website of the Authority and to create his webpage and to fill all the details there regarding the proposed project. The authority may also reject the registration if the applicant does not conform to the provisions of this Act or the rules and regulations made there under. The regulatory authority must record the reasons in writing for the rejection of the application.

If the authority fails to grant or reject the application within the prescribed period of 30 days , then the project shall be deemed to be registered and within 7 days from the date of expiry of 30 days, the authority shall provide the registration number and the Login Id and the password to the promoter for accessing the website of the Authority.

 

If the registration application is granted by the authority, then the application shall be valid for a

period as is declared by the promoter in his application for registration. The registration may be

extended by the Authority on an application made by the promoter in case of war, flood, draught, cyclone, fire, earthquake or any other calamity caused by nature. The Authority may in the reasonable circumstances which are based on facts of each case and for reasons recorded in writing extend the registration time but it shall in aggregate not exceed a period of one year. Also, the application shall not be rejected unless the applicant has been given an opportunity of being heard in the matter.

 

If the promoter contravenes the provisions of Section 3 of the Act and does not get the mandatory registration done for the real estate project with RERA, then he shall be liable under Section 59(1) of the Act which states that the penalty may extend upto 10% of the estimated cost as determined by the Authority. If the promoter does not comply with this order or he continues to violate Section 3, then the promoter shall be punished with imprisonment which may extend to 3 years or fine upto 10% of estimated cost or both.

If the promoter applies for the registration of the real estate project but furnishes false information in the form of documents, then the promoter shall be liable for the penalty which may extend to 5%

of the estimated cost of the real project as determined by regulatory authority.