1. (REGULATION AND DEVELOPMENT) ACT, 2016
THE REAL ESTATE
(REGULATION AND DEVELOPMENT) ACT, 2016
-CA Javed Gadiwala
PGRT & Associates

2. Overview of RERA Step Timeline Passed by Rajya Sabha 10th March 2016
Passed by Lok Sabha
15th March 2016
Assent of the President of India
25th March 2016
Publishing of Act in Official GazeNe
26th March 2016
Date of Act Coming in Force
Central Government to publish a Notification in Official Gazette
State Government to frame Rules
Within 6 months of Commencement
State Government MUST setup Real Estate
Regulatory Authority
Time of 1 year from act coming into
force given to State Governments
Appellate Tribunal 2

3. Important Definition under RERA (Sec.2)
Advertisement - means any document described or issued as advertisement through any medium and includes any notice, circular or other documents or publicity in any form, informing persons about a real estate project, or offering for sale of a plot, building or apartment or inviting persons to purchase in any manner such plot, building or apartment or to make advances or deposits for such purposes
Building - includes any structure or erection or part of a structure or erection which is intended to be used for residential, commercial or for the purpose of any business, occupation, profession or trade, or for any other related purposes 3

4. Important Definition under RERA (Sec.2)
Carpet area - means the net usable floor area of an apartment, excluding the area covered by the external walls, areas under services shafts, exclusive balcony or verandah area and exclusive open terrace area, but includes the area covered by the internal partition walls of the apartment.
Explanation.— For the purpose of this clause, the expression "exclusive balcony or verandah area" means the area of the balcony or verandah, as the case may be, which is appurtenant to the net usable floor area of an apartment, meant for the exclusive use of the allottee; and "exclusive open terrace area" means the area of open terrace which is appurtenant to the net usable floor area of an apartment, meant for the exclusive use of the allottee 4

5. Important Definition under RERA (Sec.2)
Development - with its grammatical variations and cognate expressions, means carrying out the development of immovable property, engineering or other operations in, on, over or under the land or the making of any material change in any immovable property or land and includes re-development;
Person Include individual, HUF, Company, Firm, Competent authority, AOP/BOI, Co-op. society, any such other entity as the appropriate Government may, by notification, specify in this behalf 5

6. Important Definition under RERA (Sec.2)
Estimated cost of real estate project –
means the total cost involved in developing the real estate project and
Includes
Land Cost,
Taxes,
Cess,
Development and Other charges. 6

7. Important Definition under RERA (Sec.2)
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 7

8. Right & Duties of Promoters Right & Duties of Allotee
Provision under RERA Act, 2016
Registration
Right & Duties of Promoters
Right & Duties of Allotee
Section 3 – Registration and exemption from registration
Section 4 – Documents required for Registration
Section 5 – Grant or rejection of registration by authorities
Section 6 – Extension of validity of Registration
Section 7 – Revocation of registration granted
Section 8 - Obligation of Authority consequent upon lapse of or on revocation of registration
Section 9 &10 –Real estate Agent Registration and their function
Section Duties of Promoters
Section 12 – Compensation by promoters due to false adv.
Section 13 – No deposit by promoters before Agreement for sale (< 10%)
Section 14 – Adherence to Approved plan by Promoters
Section 15 – Transfer of project to third party by promoters (2/3rd Consent)
Section 16 – Insurance of project
Section 17 – Transfer of title.
Section 18 – In case failure returning of amount (Amount + Interest + Compensation)
Section 32 – promotion of Real estate sector by RERA
Section 19 – Right & Duties of Allotee
Section 31 – Filling of complaint to RERA
Section 44 – Right of Appeal against order under RERA to REAT
Section 56 – Right of legal representative (CA *) 8

9. Major Provision under RERA Act, 2016
REAT
Other
Section 20 – Establishment of RERA by state.
Section 21 – Composition of Authority.
Section 22 –Qualification
Section 23 – Terms or CP / Members (Not exceeding 5 years or 60 age)
Section 24 – Salary of CP/Member
Section 25 – Power of CP
Section 26 – Removal of CP/members
Section 27 – Restriction on employment
Section 28 – Additional Staff
Section 43 – Establishment of Real Estate Appellate Tribunal (REAT)
Section 44- Appeal (within 60 days of order) (disposed off in 60 days)
Section 45 – Composition of REAT (1 CP 2 members)
Section 46 – Qualification of CP/ Members of REAT
Section Terms or CP / Members (Not exceeding 5 years or 67/65 age)
Section 48 – Salary
Section 49 – Removal of CP/members
Section 50 - Restriction on employment
Section 51 - Additional Staff
Section 41 – Establishment of Central Advisory Council
Section 42 – Function of Council
Section 58 – Appeal to high court on order of REAT (within 60 days on ground as per section 100 of CCP, 1908)
Section 73 –Grant by CG
Section 74 – Grant by SG
Section 75 – Constitution of fund.
Section 76 – Credit of Penalty
Section 77 – Budget, a/c & Audit of RERA
Section 78 – Annual report RERA
Section 79 – Bar of jurisdiction
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10. Major Provision under RERA Act, 2016
REAT
Other
Section 29 – Meeting (decision by majority)
Section 30 – Vacancies etc., not to invalidate proceeding of Authority.
Section 31 – Complaint (Any person can complain )
Section 33 – Advocacy and awareness measures
Section 34 – Function of Authority
Section 35 –Power of authority to call for Info/ investigation
Section 36- Issue interim order
Section 37 – Issue direction
Section 38 – Impose penalty/ interest
Section 52 – Vacancies need to filled
Section 53 – Power of REAT
(Power of Code of Civil Proc. 1908)(deemed to be civil court)
Section 54 – Administration power of CP
Section 55 - Vacancies etc., not to invalidate proceeding of Authority.
Section 57 – Order = Decree of civil court
Section 80- No Cognizance of offence
Section 81 – Delegation of Power
Section Power of supersede the authority by Appropriate govt.
Section 83 - Power to issue direction/order to authority by Appropriate govt.
Section 84 – Power to make rules by Appropriate govt.
Section 85 – Power to make regulation by Appropriate govt.
Section Lying of rules
Section 87 – All members = Public servant
Section 88 – Application of other law not barred
Section 89 – Act have overriding effect
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11. Major Provision under RERA Act, 2016
REAT
Other
Section 39 – Rectification of Order (within 2 yrs)
Section 40 – Recovery of interest/ penalty / comp.
Section 90 – protection of action taken in good faith.
Section 91 – power to remove difficulties
Section 92 – MH(R&D) Act, 2012 repeal.
Section 71 – Power to adjudicate compensation u/s 12, 14, 18 & 19.
Section 72 – Factor to be consider for adjudging u/s 71 11

12. Registration (Sec. 3) Registration of Project
Provision
Impact
Registration of Project
Promoter cannot advertise, book, sell, offer for sale, invite persons to purchase before registration in planning area*
(Penalty of 10% of Cost of the Project for contravention)
Planning Area declared by Gujarat Govt. 12

13. Registration {Sec. 3(2)} Plot Area upto 500 sq mtrs OR
Provision
Impact
Projects that need not be registered
Plot Area upto 500 sq mtrs OR
No. of Apartments upto 8 including all Phases
- Completion Certificate received
Project of renovation or repair or redevelopment with no new allotment
(threshold can be reduced by appropriate government below 500 Sqmtrs or 8 units)
Registration of on going project (Rule 4 of Gujarat general rules)
Within 3 Months 13

14. Who is required to register
Application for registration (Sec. 4)
Every promoter shall make an application to the Authority for registration of the real estate project in such form, manner, within such time and accompanied by such fee as may be specified by the regulations made by the Authority.
Who is required to register
Promoters - a person who constructs or causes to be constructed or develops land into a project or any other public body or any development authority or apex State level co-operative housing finance society and a primary co-operative housing society or any other person act as promoter 14 14

15. Application for registration (Sec. 4)
Sr. No
Document or Details required for Registration 1
A brief details of his enterprise 2
A brief details of project launched in last 5 years 3
Commencement Certificate 4
Sanction and layout plan, and specification of project approved. 5
Plan of development work and proposed facilities to be given 6
Location of project 15 15

16. Application for registration (Sec. 4)
Sr. No
Document or Details required for Registration 7
Proforma of the allotment letter, agreement for sale, and the conveyance deed proposed to be signed with the allottees 8
Nos/ Type / Carpet of each unit 9
The number and areas of garage for sale in the project 10
The names and addresses of his real estate agents 11
The names and addresses of the contractors, architect, structural engineer, if any and other persons concerned with the development of the proposed project 12
A declaration, supported by an affidavit, which shall be signed by the promoter or any person authorized by the promoter, 16 16

17. Documents & Information in addition to Sec.4
(As per Gujarat General Rule 3)
Sr. No
Document or Details required for Registration 1.
Estimated cost of real estate project by bifurcating into
a. Market Value of Land (As determined by the Govt Approved Valuer)
b. Cost of Construction
c. Other Cost
d. Interest
e. Taxes
f. Cess
g. Development and other charges
At the time of registration 17 17

18. Grant, Reject, Extension & Revocation of Registration
Section
Provision
Section 5 (Grant or Reject)
On application either grant or reject application for registration within 30 days. (For rejection reason to be recorded in writing)
If fails to give registration within 30 days then deemed to be registered
Section 6 Extension of Registration
Registration granted u/s 5 can be extended not exceed 1 years on force majeure
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 18 18

19. Grant, Reject, Extension & Revocation of Registration
Section
Provision
Rule 7 of Guj Gen rule
Authority may waive fees for extension in case of force majeure
Section 7 Revocation of registration
Authority my on complain or sue motu can revoke by giving 30 days notice
Instead of revocation authority may imposed additional terms & conditon. 19 19

20. Registration of Real Estate Agent (Sec. 9)
No real estate agent w/o registration shall facilitate
Sell
Purchase
Or act on behalf of other to facilitate
Any plot, apartment or building of real estate project u/s 3
- No RSA not to facilitate sell or purchase w/o registration
- Maintain such books & records as prescribe
- Not involve in any unfair trade practice
- Possess all documents related to project
- Discharge other function as may prescribe
Sec. 10 20 20

21. Fees of New Registration Gujarat RERA (Rule 3)
Type of Project
Land Area development
Application Fees
Group Housing Project
Upto 1000 Sq mrs
5/Per Sq Mtr or 5 lack w/l
More than 1000 Sq mtr
10/per sq mrt or 5 lack w/l
Mixed Development (R &C)
10/Per Sq Mtr or 7 lack w/l
15/Per Sq Mtr or 7 lack w/l
Commercial Project
20/Per Sq Mtr or 10 lack w/l
25/Per Sq Mtr or 10 lack w/l
Plotted development Project -
5/Per Sq Mtr or 2 lack w/l 21

22. Fees of Registration of Agent under Gujarat RERA
Type of Project
Land Area development
Application Fees
Real Estate Agent NA
10000/- for Individual
50000/- for other than Individual 22

23. List of Forms under Gujarat RERA
Particulars A
Application for Registration by Promoters B
Declartion by promoters for registration under Rule 4 C
Registration Certificate to Promoters D
Rejection of Application of registration by promoters E
Application for Extension of Registration by Promoters F
Extended registration certificate to Promoters G
Application for Registration by Real Estate Agent H
Registration Certificate to Real Estate Agent I
Rejection of Application of registration by Real Estate Agent J
Application for Renewal of registration by Real Estate Agent K
Renewed registration certificate of Real Estate Agent 23

24. Fees extension of Registration under Gujarat RERA
Fees for registration of Extension of Existing Project
Half of fees under Rule 3
Where extension of registration is due to force majeure
the authority may at its discretions waive the fee 24

25. Penalties under RERA Act, 2016
Section
Contravention
Penalty
59 (1)
Non-registration under Sec. 3 by Promoters
Up to 10% of Total project Cost
59 (2)
Does not Comply with Sec. 59(1) or continue contravention of Sec. 3 By promoters
Furhter penalty of Up to 10% of Total project Cost or imprisonmnet upto 3 yrs or both 60
False info/documents asked in sec. 4 by promotors
Up to 5% of Total project Cost 61
Contravention of any other provision other than section 3 or 4 62
Non-registration under Sec. 9 & 10 by Real estate Agent
10000/per day upto 5 % of said plot/blg/apprt cost etc 25

26. Penalties under RERA Act, 2016
Section
Contravention
Penalty 63
Penalty for failure to comply with orders of Authority by promoter.
Up to 5% of Total project Cost 64
Penalty for failure to comply with orders of REAT by promoter.
Penalty of Up to 10% of Total project Cost or imprisonmnet upto 3 yrs or both 65
Penalty for failure to comply with orders of Authority by real estate agent.
Upto 5 % of said plot/blg/apprt cost etc 66
Penalty for failure to comply with orders of REAT by real estate agent.
Penalty of Up to 10% of said plot/blg/apprt cost etc or imprisonment up to 1 yrs or both 26

27. Penalties under RERA Act, 2016
Section
Contravention
Penalty 67
Penalty for failure to comply with orders of Authority by allotee.
Upto 5 % of said plot/blg/apprt cost etc 68
Penalty for failure to comply with orders of REAT by allotee.
Penalty of Up to 10% of said plot/blg/apprt cost etc or imprisonmnet upto 1 yrs or both
69 (1)
Offence by Company
Company / office in charge deemed to be guilty 70
Compouding of offence
imprisonment under this act may compounded by court on such term and condition 27

28. Opportunities for CA Registration 1 Extension of Registration 2
Advisory Role 3
Appeal (Section 56 of the act allowed CA) 4 28

29. Opportunities for CA CA Certification for Withdrawal from bank 5
Annual Audit under RERA Act (Sec 4) 6
Status reporting of every project 7
Assisting in preparation of submission 8 29