Rera 1

The Real Estate (Regulation and Development)
Act 2016- select definitions,

Act, definitions registration
requirements, functions and duties of promoters,
real estate agents, rights and duties of allottees
Jagdish T Punjabi June 10, 2017
Table of Contents
Sr
Sr.
No. Particulars of contents From To
1 Objects and reasons for which RERDA has 3 3
been introduced
2 Chapters and Sections of RERDA 4 4
3 Relevant
R l sections
i d
dealing
li with
ihFFunctions
i and
d 5 5
Obligations of a Promoter
4 Rights and Duties of Allottees 6 6
5 Dates of coming into force of various sections 7 7
of the Act
6 Definitions 9 45
7 Prior registration of a real estate project with 47 53
RERA
Jagdish T Punjabi June 10, 2017 2

Table of Contents
Sr
Sr.
No. Particulars of contents From To
8 Registration
g requirements
q 55 85
9 Grant of registration, extension and revocation 86 92
thereof
10 Obligation of Authority consequent to lapse or 93 94
revocation of registration
11 Provisions of Separate Account 96 120
12 Functions and Obligations of Promoter 122 169
13 Rights and Duties of Allottees 171 180
14 Real Estate Agents Registration 181 187
requirements, functions & duties
Objects and reasons for which RERDA has been framed
Act 2016 (RERDA) is intended to

The Real Estate Regulation and Development Act,
achieve the following objectives
ensure accountability towards allottees and protect their interest;
infuse transparency, ensure fair-play and reduce frauds & delays;
introduce professionalism and pan India standardization;
establish
t bli h symmetry
t off information
i f ti between
b t th promoter
the t and
d allottee;
ll tt
imposing certain responsibilities on both promoter and allottee;
establish regulatory
g y oversight
g mechanism to enforce contracts;;
establish fast-track dispute resolution mechanism;
promote good governance in the sector which in turn would create investor
confidence.

Chapters and Sections of RERDA, 2016
Chapter
p Dealing
g With Sections
I Preliminary 1 to 2
Registration of Real Estate Project and

II 3 to 10
Registration of Real Estate Agents
III Functions and Duties of Promoter 11 to 18
IV Rights and Duties of Allottees 19
V The Real Estate regulatory Authority 20 to 40
VI Central Advisory Council 41 to 42
VII The Real Estate Appellate Tribunal 43 to 58
VIII Offences, Penalties and Adjudications 59 to72
IX Finance, Accounts, Audits and Reports 73 to 78
X Miscellaneous 79 to 92
Relevant sections dealing with Functions and Obligations of

Promoter
Section Brief Description
11 Functions and Duties of Promoter
Obligations of Promoter regarding veracity of the Advertisement or

12
Prospectus
No deposit or Advance to be taken by Promoter without first entering into

13
Agreement for Sale
14 Adherence to sanctioned Plans and Project specifications by the Promoter
Obligations of Promoter in case of transfer of a real estate project to a third

15
party
16 Obligations of Promoter regarding insurance of Real Estate Project
17 Transfer of Title
18 Return of amount and compensation

Sections dealing with Rights and Duties of Allottees
Section Brief Description
19 Rights and Duties of Allottees
Date of coming into force of the Act

The Act extends to whole of India except the State of Jammu and Kashmir
Various provisions of the Act have come into force on different dates notified by the
Central Government in the Official Gazette. Certain provisions of the Act became
p
operational on 1.5.2016.
The dates on which the provisions have become operational are as under
Effective 1.5.2016 Effective 1.5.2017
Section 2 Sections 3 to 19
Sections 20 to 39 Section 40
Sections 41 to 58 Sections 59 to 70
Sections 71 to 78 Sections 79 to 80
Sections 81 to 92
The Act has become fully

f operational on 1.5.2017.
1 201

Certain Definitions of RERDA
Section 2(b) : Advertisement

As in other enactments, section 2 defines words and
expressions used in the Act. The provisions of section 2 are
unless the context otherwise requires.
Section 2(b) : Advertisement
y document described or issued as

"advertisement" means any
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,
plot
building or apartment or to make advances or deposits for such
purposes;

Section 2(c) : Agreement for sale
S ti 2(c)
Section 2( ) : Agreement
A t for
f sale
l
"agreement for sale" means an agreement entered into between the

promoter and the allottee;
Section 2(d) : Allottee

Section 2(d)
( ) : 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 p
person to whom such p
plot,,
apartment or building, as the case may be, is given on rent;
As per s. 2(d), an allottee includes a person who acquires the said
àpartment/plot through transfer or sale, but does not include a
person to whom such plot / apartment is given on rent. The Act
doesnt include rental projects, lease / leave and license deals.
[Answer to FAQ 8 as to whether term allottee includes a secondary
sales]
Section 2(e) : Apartment
Section 2(e) : Apartment
"apartment" whether called block, chamber, dwelling unit, flat, office,

showroom shop,
showroom, shop godown,
godown premises,
premises suit,
suit tenement,
tenement unit or by any
other name, means a separate and self-contained part of any
i
immovable
bl property,
t including
i l di one or more rooms or enclosed
l d
spaces, located on one or more floors or any part thereof, in a
b ildi
building or on a plot
l t off land,
l d used
d or intended
i t d d to
t be
b used
d for
f any
residential or commercial use such as residence, office, shop,
showroom or godown or for carrying on any business, occupation,
profession or trade, or for any other type of use ancillary to the
purpose specified;
Section 2(j) : Building
Section 2(j) : Building
"building" includes any structure or erection or part of a structure or

erection which is intended to be used for residential,
residential commercial or
for the purpose of any business, occupation, profession or trade, or
f any other
for th related
l t d purposes;

Section 2(k) : Carpet Area
Section 2(k) : Carpet Area
"carpet area" means the net usable floor area of an apartment, excluding
the area covered by the external walls,
walls areas under services shafts,
shafts
exclusive balcony or verandah area and exclusive open terrace area, but
includes the area covered by
y the internal p
partition walls of the apartment.
p
Explanation - For the purpose of this clause, the expression "exclusive

balcony or verandah area
area" means the area of the balcony or verandah,
verandah as
the case may be, which is appurtenant to the net usable floor area of an
apartment,
p , meant for the exclusive use of the allottee;; and "exclusive open
p
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;
Section 2(n) : Common Areas
"common areas" mean
(i) the entire land for the real estate project or where the project is
developed in phases and registration under this Act is sought
for a phase, the entire land for that phase;
((ii)) the stair cases,, lifts,, staircase and lift lobbies,, fire escapes,
p , and
common entrances and exits of buildings;
(iii) the common basements,

basements terraces,
terraces parks,
parks play areas,
areas open
parking areas and common storage spaces;

(iv) the premises for the lodging of persons employed for the management
of the property including accommodation for watch and ward staffs or
for the lodging of community service personnel;
(v) installations of central services such as electricity, gas, water and
sanitation,, air-conditioning
g and incinerating,
g, system
y for water
conservation and renewable energy;
(vi) the water tanks, sumps (sic pumps), motors, fans, compressors, ducts
and all apparatus connected with installations for common use;
(vii) all community and commercial facilities as provided in the real estate
project;
(viii) all other portion of the project necessary or convenient for its
maintenance, safety, etc., and in common use;
Section 2(o) : Company
Section 2(o) : Company
"company" means a company incorporated and registered under the

C
Companies
i Act,
A t 2013 and
d includes
i l d
(i) a corporation established by or under any Central Act or State

Act;
((ii)) a development
p authority
y or any
yppublic authority
y established by
y
the Government in this behalf under any law for the time being
in force;

Section 2(m) : Commencement Certificate
Section 2(m) : Commencement Certificate
"commencement certificate" means the commencement certificate

or the
th building
b ildi permit
it or the
th construction
t ti permit,
it by
b whatever
h t name
called issued by the competent authority to allow or permit the
promoter
t tot begin
b i development
d l t works
k on an immovable
i bl property,
t as
per the sanctioned plan;
Section 2(p) : Competent Authority
Section 2(p) : Competent Authority
"competent authority" means the local authority or any authority

created
t d or established
t bli h d under
d any law
l f the
for th time
ti b i in
being i force
f b
by
the appropriate Government which exercises authority over land
under
d it jurisdiction,
its j i di ti and
d has
h powers to
t give
i permission
i i f
for
development of such immovable property;

Section 2(q) : Completion Certificate
Section 2(q) : Completion Certificate
"completion certificate" means the completion certificate, or such

other
th certificate,
tifi t by b whatever
h t name called,
ll d issued
i d by
b the
th competent
t t
authority certifying that the real estate project has been developed
according
di tot the
th sanctioned
ti d plan,
l l
layout
t plan
l and
d specifications,
ifi ti as
approved by the competent authority under the local laws;
Completion Certificate for Rule 4(1) registration of an

ongoing real estate project
For the purpose of subsub-rule
rule 4(1) dealing with registration of an
ongoing real estate project, the term completion certificate is defined
as
the term completion certificate shall mean such building permission

or certificate,
tifi t by b whatever
h t name called,
ll d which
hi h is
i issued
i d by
b the
th
competent authority by or under the provisions of Maharashtra
Regional Town Planning Act, 1966 or under any other law for the
time being in force, in accordance with which the permission for
development has been granted.

Section 2(s) : Development
Section 2(s) : Development
"development" with its grammatical variations and cognate

expressions,
i means carrying
i outt the
th development
d l t off immovable
i bl
property, engineering or other operations in, on, over or under the
l d or the
land th making
ki off any material
t i l change
h i any immovable
in i bl
property or land and includes re-development;
Section 2(v) : Estimated cost of real estate project
"estimated cost of real estate project" means the total cost

involved in developing the real estate project and includes the
land cost, taxes, cess, development and other charges;

"estimated cost of real estate project" means the total cost

involved in developing the real estate project and includes the
land cost, taxes, cess, development and other charges;
Section 2(x) : Family
Section 2(x) : Family
"family" includes husband, wife, minor son and unmarried

daughter wholly dependent on a person;

Section 2(y) : Garage
Section 2(y) : Garage
"garage" means a place within a project having a roof and

walls on three sides for parking any vehicle, but does not
include an unenclosed or uncovered parking space such as
open parking areas;
Section 2(z) : Immovable Property
Section 2(z) : Immovable Property
"immovable property" includes land, buildings, rights of ways,

lights or any other benefit arising out of land and things
attached to the earth or permanently fastened to anything
which is attached to the earth, but not standing timber,
standing crops or grass;

Section 2(za) : Interest
Section 2(za) : Interest

"interest" means the rates of interest payable by the promoter or the
allottee, as the case may be.
Explanation - For the purpose of this clause -
(i) the rate of interest chargeable from the allottee by the promoter,
in case of default, shall be equal to the rate of interest which the
promoter shall be liable to pay the allottee, in case of default;
(ii) the interest payable by the promoter to the allottee shall be from
the date the promoter received the amount or any part thereof
till the date the amount or part thereof and interest thereon is
refunded and the interest payable by the allottee to the
refunded,
promoter shall be from the date the allottee defaults in payment
to the promoter till the date it is paid;
Section 2(zf) : Occupancy Certificate
Section 2(zf) : Occupancy Certificate
"occupancy certificate" means the occupancy certificate, or such

other
th certificate
tifi t byb whatever
h t name called,
ll d issued
i d by
b the
th competent
t t
authority permitting occupation of any building, as provided under
l
local
l laws,
l which
hi h has
h provision
i i for
f civic
i i infrastructure
i f t t such
h as water,
t
sanitation and electricity;

Section 2(zg) : Person
Section 2(zg) : Person
"Person" includes,
(i) an individual;
(ii) a Hindu undivided family;
(iii) a company;
(iv)
(i ) a firm
fi under
d the
th Indian
I di Partnership
P t hi Act,
A t 1932 or the
th Limited
Li it d
Liability Partnership Act, 2008, as the case may be;
((v)) a competent
p authority;
y
(vi) an association of persons or a body of individuals whether
incorporated or not;
(vii)
( ii) a co-operative
ti society
i t registered
i t d under
d any law
l relating
l ti to
t co-
operative societies;
((viii)) any
y such other entity y as the appropriate
pp p Government may,
y by
y
notification, specify in this behalf;
Section 2(zk) : Promoter

"promoter" means -
(i) a person who constructs or causes to be constructed an

independent building or a building consisting of apartments, or
converts
t an existing
i ti building
b ildi or a partt thereof
th f into
i t apartments,
t t
for the purpose of selling all or some of the apartments to other
d includes
persons and i l d hishi assignees;
i 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
co-operative housing society which constructs
apartments or buildings for its Members or in respect of the
allottees
ll tt off such
h apartments
t t or buildings;
b ildi or
((v)) any
y other p
person who acts himself as a builder,, coloniser,,
contractor, developer, estate developer or by any other name or
g as the holder of a p
claims to be acting y from the
power of attorney
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.
public
Explanation - For the purposes of this clause, where the

person who constructs or converts a building into apartments or
develops a plot for sale and the persons who sells apartments
or plots are different persons, both of them shall be deemed to
be the promoters and shall be jointly liable as such for the
functions and responsibilities specified, under this Act or the
rules and regulations made thereunder;
Section 2(zm) : Real Estate Agent

Section 2(zm) : 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;
Section 2(zn) : Real Estate Project
Section 2(zn)
( ) : Real Estate Project
j
"real estate project" means the development of a building or a
building consisting of apartments,
apartments or converting an existing
building or a part thereof into apartments, or the development
off land into plots or apartment, as the case may be, for
f 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;
Section 2(zq) : Sanctioned Plan

Section 2(zq)
( q) : Sanctioned Plan
"sanctioned plan" means the site plan, building plan, service
plan parking and circulation plan,
plan, plan landscape plan,
plan layout plan,
plan
zoning plan and such other plan and includes structural
designs, iff applicable, permissions such as environment
permission and such other permissions, which are approved
by the competent authority prior to start of a real estate project;

Section 2(zr) : Words and expressions used but not defined
Section 2(zr) : Words and expressions used but not defined
words and expressions used herein but not defined in this Act
and defined in any law for the time being in force or in the
municipal laws or such other relevant laws of the appropriate
Government shall have the same meanings respectively
assigned to them in those laws.
Words and expressions defined in Rules

Rule 2(f)
( ) : Authenticated Copy
py
authenticated copy" shall mean a self-attested copy of any
document required to be provided by any person under these
rules;

Rule 2(j)
(j) : Covered Parking
g Space
p
Covered parking space means an enclosed or covered area

as approved by the Competent Authority as per the applicable
p
Development g
Control Regulations for p g of vehicles of the
parking
allottees which may be in basements and/or stilt and/or
podium and/or space provided by mechanised parking
arrangements but shall not include a garage and/or open
parking;
ki

Rule 2(m)
( ) : FSI or Floor Space
p Index
FSI or Floor Space Index shall have the same meaning as

assigned to it in the Building Rules or Building Bye-laws or
p
Development g
Control Regulations y law for the
made under any
time being in force;

Rule 2(p)
(p) : Phase of a Real Estate Project
j
Phase of a Real Estate Project may consist of a building or a

wing of the building in case of building with multiple wings or
y building/wing;
defined number of floors in a multi-storeyed g g

Rule 2(q)
(q) : Redevelopment
p Scheme
Redevelopment Scheme means a scheme inter alia

providing for allotment of apartments in respect of
p
rehabilitation or redevelopment of slum areas, old or
dilapidated buildings (whether cessed or not), or cluster of
buildings as may be approved by the relevant competent
buildings,
authority under the provisions of any State or Central law or
orders
d off the
th State
St t or Central
C t l Government;
G t

Registration of a Real Estate Project
In respect of a real estate project situated in a planning area, it

is only after registration of a real estate project can a promoter
advertise,
advertise book,
book sell or offer for sale,
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.
Promoter of a real estate project which is ongoing, on the date
of commencement of the Act and for which the completion
pp
certificate has not been issued, shall make an application for
registration within 3 months from the date commencement of
Act
the Act.
Areas of Maharashtra which are included in the Planning

Area as defined in the Act
In accordance with the notifications issued by the Urban
Development Department of Government of Maharashtra, MR
& TP Act is applicable to all the districts of Maharashtra.
Hence, all areas of Maharashtra are included in Planning Area
as defined in Section 2(zh) of the Act.

Prior registration of a real estate
project with RERA
Registration of a Real Estate Project

No registration of a real estate project is required in the following
cases
(a) where the area of land proposed to be developed does not
exceed 500 sq. mts or the number of apartments proposed to be
d
developed
l d does
d nott exceed
d 8 inclusive
i l i off allll phases;
h
(b) where the promoter has received completion certificate for a
real estate project prior to commencement of this Act;
(c) 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.
Phase of a project deemed to be a stand alone real estate
project
Explanation to section 3 states that where the real estate
project is to be developed in phases, every such phase shall be
considered a stand alone real estate project,
project and the promoter
shall obtain registration under this Act for each phase
separately.
The term `phase of a real estate project is not defined in the
Act but Rule 2(p) of the Rules defines it as
j
Phase of a Real Estate Project y consist of a building
may g or
a wing of the building in case of building with multiple wings
or defined number of floors in a multi-storeyed building/wing;
Phase of a project deemed to be a stand alone real estate

project
However, for the registration of an ongoing real estate project
i.e. a real estate project which is ongoing on the date of
commencement of the Act,
Act the Explanation to Rule 4(1) states
as under
Explanation - For the purpose of this sub-rule,
(I) the expression phase of the project means the
building or buildings in a project in respect of which
p y or completion
occupancy p certificate has not been received.
Therefore, for registration of an ongoing real estate project, the wing
g or defined number of floors in a multi-storeyed
of a building y building
g/
wing will not be regarded as a phase of a project.
FAQs relevant for section 3
If a real estate project has land area more than 500 sq. mts. but
containing less than 8 apartments. Does it still need to be
registered?
Answer: Yes. Every real estate project which has land area
more than 500 sq. mts. or has more than 8 apartments needs
to be registered.
If a real estate project has land area less than 500 sq. mts. but
contains more than 8 apartments. Does it still need to be
registered.
registered
Answer: Yes. Every real estate project which has land area
more than 500 sq. mts. or has more than 8 apartments needs
to be registered.

Does advertisement include solicitation by emails and sms? Is

issuance of prospectus considered to be a case of
advertisement .
àdvertisement
Answer: As per section 2(b), which defines àdvertisement,
any medium adopted in soliciting for sale would be covered
under the said definition, including sms and emails.
Prospectus, which is intended for sale of apartment in real
estate p j
project, will also be covered.
Can advertisement be issued for a new project after 1st May,

2017 without registering the said project.
No The advertisement issued after 1st May,
Answer: No. May 2017
must carry the MahaRERA Registration Number of the project.

Registration Requirements
Who is required to register, how and when
Section 4 mandates that every promoter shall make an

application to the Authority for registration of the real estate
project.
project
The application has to be made online. [Rule 3(4)]
In case of an ongoing real estate project, application has to be
made within a period of three months from the date of
commencement of section 3. [Rule 4(1)]

Fees for registration
The Promoter has to pay, at the time of application, a
registration fee calculated at the rate of Rs. 10 per sq. meter
subject to minimum of Rs.
Rs 50,000
50 000 and maximum of Rs.
Rs 10 lakh.
lakh
[Rule 3(5)(i)]
The registration fee is to be paid through NEFT or RTGS

System or any other digital transaction mode. [Rule 3(5)(ii)]
In addition, the promoter is required to pay a MahaOnline

convenience fee of Rs. 750. [[Order No.
MahaRERA/Secretary/Order/15/2017 dt. 17.4.2017]
Declaration to be furnished along with application and

application for withdrawal of application for registration
Declaration required to be furnished, under s. 4(2)(l), along
with the application, is to be in Form B given in the Rules.
[Rule 3(6)].
3(6)]
Promoter may apply for withdrawal of application for registration
of the real estate project before the expiry of the period of 30
days of its submission to the Authority provided under s. 5(1).
In such cases, the registration fee to the extent specified by the
g
regulations framed byy the Authority,
y shall be retained as
administrative charges towards processing of application by the
Authority and the remaining amount shall be refunded to the
promoter within the period specified in the regulations.[Rule
58
3(7)]
Which projects do not require registration
Explanation to Rule 3 states that the registration of a real estate

project shall not be required
(i) for the purpose of any renovations or repair or
redevelopment which does not involve marketing,
advertisement, selling or new allotment of any apartment, plot
or building as the case may be under the real estate project.
(ii) where only structural repairs of existing buildings are being
undertaken byy or through
g any
y Public Authority
y or as p
per
requirement under any law, rules or regulations of the State
Authority
Government or directions of any Competent Authority.
Information to be furnished by the promoter for the

registration of a real estate project Ss. 4(1), 4(2) and Rule 3(2
For registration of the real estate project with the Authority, the
promoter shall furnish to the Authority such information as is
required under Ss.
Ss 4(1) and 4(2) of the Act and also the
information and documents required by rule 3(2).
The application for registration of a real estate project shall be
made in Form A, in writing, by the promoter or his authorised
representative authorised by a letter of authority or Board
p
Resolution and shall be submitted in triplicate [[Rule 3(3)].
( )]
Where provision has been made for submission of web-based
application for reigstration the provisions of sub-rule (3) shall
not apply [Rule 3(4)]. 60
Hereunder is a list of information and documents required
q to be
furnished by the promoter for registration of the real estate project
with the Authority
(i) authenticated copy of the PAN card of the promoter and
a letter of authority or Board Resolution,
Resolution in case the promoter not
being an individual;
(ii) Name photograph,
Name, photograph contact details and address of the
promoter if he is an individual or authorized representative; or the
name,
name photograph,
photograph contact details and address of the chairman,
chairman
partners, directors, as the case may be, and the authorized
entities
representative in case of other entities.

(iii)
( ) a brief detail of the projects
p j launched by
y him,, in the past
p
five years, whether already completed or being developed, as the
case may be, including the current status of the said projects, any
delay in its completion, details of cases pending, details of type of
land and payments pending; [the requirement online is to furnish
details of projects launched and completed in past five years]
(iv) estimated cost of Real Estate project as defined in
Section 2 (v) of the Act;
(v) a copy of the legal title report reflecting the flow of title of
the owner or promoter to the land on which development is proposed,
with authentication of such title by practicing advocate;

(vi) where the promoter is not the owner of the land on
which development is proposed, a copy of the collaboration
agreement,
agreement development agreement,
agreement joint development
agreement or any other form of agreement, as the case may
be, entered into between the promoter and such owner,
reflecting the consent of the owner of the land and
authenticated copies of legal title report reflecting the title of
such owner, on the land p p
proposed p
to be developed;

(vii) the details of encumbrances on the land on
which development is proposed including any rights, title,
interest,
interest dues,
dues litigation,
litigation details relating to mortgage / charge
created for the project land for the facility taken by the applicant
or any third party and name of any party in or over such land or
no encumbrance certificate from an advocate having
experience of ten years or from revenue authority not below
y be;
the rank of Tehsildar, as the case may

(viii) an authenticated copy of the approvals and
commencement certificate from the competent authority
obtained in accordance with the laws as may be applicable for
the real estate project mentioned in the application, and where
the project is proposed to be developed in phases, an
authenticated copy of the approvals and commencement
certificate from the competent authority for each of such
p
phases;

(ix) 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;
(x) the plan of development works to be executed in the
proposed project and the proposed facilities to be provided
thereof including fire fighting facilities, drinking water facilities,
emergency evacuation services, use of renewable energy;
((xi)) the location details of the p j
project, with clear
demarcation of land dedicated for the project along with its
boundaries including the latitude and longitude of the end
points of the project; 66
(xii) the Proposed Plan, Proposed Layout Plan of the
whole project and Floor Space Index proposed to be consumed
in the whole project,
project as proposed by the promoter;
(xiii) proposed Floor Space Index to be consumed and
sanctioned Floor Space Index. In case the sanctioned Floor
Space Index is different than what is proposed to be consumed
by the promoter, then the proposed Floor Space Index shall be
g
disclosed at the time of registration and as and when the Floor
Space Index is sanctioned, the same shall be uploaded on the
website of the Authority by the promoter from time to time;

(xiv) the number, type and the carpet area of apartments
for sale in the project along with the area of the exclusive
balcony or verandah areas and the exclusive open terrace
areas apartment with the apartment, if any;

(xv) proposed Number of building(s) or wing(s) to be
constructed and sanctioned number of the building(s) or
wing(s).
wing(s) In case the sanctioned number of building(s) or wing(s)
is different than what is proposed to be constructed by the
promoter, then the proposed number of building(s) or wing(s)
shall be disclosed at the time of registration and as and when
the additional number of building(s) or wing(s) are sanctioned,
p
the same shall be uploaded y by
on the website of the Authority y
the promoter from time to time;

(xvi) proposed number of floors in respect of each of the
building or wing to be constructed and sanctioned number of
floors in respect of each of the building or wing.
wing In case the
sanctioned number of floors is different than what is proposed
to be constructed by the promoter, then the proposed number
of floors shall be disclosed at the time of registration and as and
when the additional number of floors are sanctioned, the same
p
shall be uploaded y by
on the website of the Authority y the
promoter from time to time;

(xvii) aggregate area in sq. meters of the recreation open
space;
(xviii) the particulars in respect of Architecture and Design
Standards, Type of Construction Technology, Earthquake
Resistant Measures and the like to be adopted for Buildings
and for Common Areas and of amenities / facilities in the
Layout Plan of the real estate project including fire- fighting
g water facilities, emergency
facilities, drinking g y evacuation
services, use of renewable energy;

(xix) the number and areas of garage for sale in the
project;
(xx) the number of covered and/or open parking spaces
in the real estate project,
(xxi) the names and addresses of the contractors,
architect, structural engineer, if any and other persons
concerned with the development of the proposed project;
((xxii)) g
the names and addresses of his real estate agents,
if any, for the proposed project; etc

(xxiii) the nature of the organisation of allottees to be
constituted and to which the title of such land parcels is to be
conveyed and the specific local laws to govern such organisation
of allottees on completion of real estate project;
( i )
(xxiv) proforma
f off the
th allotment
ll t t letter,
l tt agreementt for
f sale,
l
and the conveyance deed proposed to be signed with the
allottees;
(xxv) a declaration in Form B;
(xxvi) in case the promoter has created third party interests in
respect of the real estate project, the names and addresses of
such persons in whose favour such interests have been created.
Disclosure of land cost, cost of construction and estimated

cost of real estate project
The promoter shall disclose
(a) land cost in the real estate project for the purposes
of s.
s 4(2)(l)(D);
(b) cost of construction in real estate project for the
purposes of s. 4(2)(l)(D);
(c) estimated cost of real estate project within the
meaning of clause (v) of section 2. [Rule 3(8)].

Disclosure by Promoter of ongoing real estate project rule 4
In respect of an ongoing real estate project, apart from the

disclosure of details required by s. 4(1) and 4(2) of the Act and
Rule 3 of the Rules,
Rules the promoter shall also disclose
(i) the extent of development carried out till the date of
application for registration under sub-rule (1), as per last
approved sanctioned plan of the project [Rule 4(2)]; and
(ii) extent of development of common areas, amenities, etc.
p
completed p
in respect g along
of buildings g with expected
p p
period of
completion of the ongoing real estate project. [Rule 4(2)]
(iii) the original time period disclosed to the allottees, for

completion of the project at the time of sale including the delay
and the time period within which he undertakes to complete the
pending project which shall be commensurate with the extent of
development already completed. [Rule 4(2)]
(iv) The Promoter shall disclose the number of apartments sold
or allotted to the allottees and further disclose the size of the
p
apartment p area even if such apartments
based on carpet p are
sold earlier on any other basis, such as super area, super built-
area etc.
up area, etc [Rule 4(3)(a)]

In case of plotted development, the promoter shall disclose the

area of the plots sold to the allottees including extent of share
of common areas and amenities,
amenities etc.
etc [Rule 4(3)(b)]
The Promoter shall submit a certificate

(a) from the practicing project Architect certifying the
percentage of completion of construction work of each of the
building / wing of the project;
(b) from the Engineer for the estimated balance cost to
complete the construction work of each of the building / wing
of the project, and
((c)) from the Chartered Accountant, for the estimated
balance cost to complete the project.

The Promoter shall submit a certificate

(d) from the Chartered Accountant, certifying the
balance amount of receivables from the apartments / flats /
premises sold or allotted and in respect of which the
agreement have been executed and estimated amount of
receivables in respect of unsold apartments/flats/premises
calculated at the prevailing ASR rate on the date of
certificate. [[Rule 4(2)]
( )]
Entitlement and obligations of a Promoter of ongoing real

estate project rule 4(4) and provisos thereto
The Promoter shall construct and develop real estate project in
accordance with sanctioned plan, and layout plans and
specifications as approved by Competent Authorities.[Rule
Authorities [Rule 4(4)]
The promoter will be entitled to aggregate any contiguous land
parcel through acquisition of ownership and title or by receiving
development permission, including for re-development project
and thereupon may also obtain phase-wise approvals from the
p
relevant competent authorities to sanctioned p
plan under
applicable laws, rules and regulations. [First proviso to rule
4(4)]

At the end of 90 days from the date of notification of section 3
(i.e. from 1st May, 2017), the promoter shall not advertise,
market,
market book,
book sell or offer for sale or invite persons to purchase
in any manner any plot, apartment or building in respect of such
land parcel unless he registers such independent phase as a
separate real estate project within the meaning of clause (c) of
the Explanation to section 3. [Second proviso to Rule 4(4)]

at-least
Written consent of at two-third
least two third of the allottees may not be
necessary for implementation of the proposed
plans/specifications as disclosed in agreement executed with
the allottee prior to registration or for any alterations or
additions or modifications in the sanctioned plans, layout plans
and specifications of the buildings or common areas in the Real
Estate Project which are required to be made by promoter in
compliance of any direction or order, etc. issued by, the
competent authority or statutory authority, under any law of the
State or Central Government,
Government for the time being in force.
force [Third
proviso to Rule 4(4)]
Contents of Declaration in Form B
One of the enclosures to be furnished along with application for
registration of a real estate project is a declaration, supported
by an affidavit,
affidavit signed by the promoter or any person
authorised by the promoter, stating
(A) that he has legal title to the land on which
development is proposed along with legally valid documents
with authentication of such title, if such land is owned by any
other person;
(B) that the land is free from all encumbrances, or as the
case may be,
be details encumbrances on such land including

(B) that the land is free from all encumbrances, or as the
case may be, details encumbrances on such land including
any rights,
rights title interest or name of any party in or over such
land along with details;
(C) the time period within which he undertakes to
complete the project or phase thereof, as the case may be;
(D) covenant to deposit 70% of the amounts realised for
the real estate project from the allottees in a separate
account with a scheduled bank to cover cost of construction
and land cost and shall be used only for that purpose and

also that withdrawal from the said account shall be in
proportion to the percentage of completion of the project after it
is certified by an engineer,
engineer an architect and a chartered
accountant in practice that the withdrawal is in proportion to the
percentage of completion of the project and that he shall get
his accounts audited within 6 months from the end of the
financial year by a chartered accountant.
(E) that he shall take pending approvals on time, from
competent authorities;
(F) that he has furnished such other documents as may be
prescribed by the rules or regulations under this Act.
Declaration to have following additional points

Rule 3(6)
( ) states that the declaration should be in Form B.
Form B is Àffidavit cum Declaration whereas what the Act envisages
is a Declaration supported by an affidavit.
In addition to the points mentioned in the Act, the Form B requires the
following additional declarations -
(a) that the promoter shall inform the Authority regarding all
the changes that have occurred in the information furnished
under sub-section (2) of section 4 of the Act and under rule 3 of
these rules,
rules within 7 days of the said changes occurring.
occurring
(b) that the promoter shall not discriminate against any
allottee at the time of allotment of any apartment,
apartment plot or building,
building
as the case may be. 70
Grant of registration S. 5
The Authority
y shall,, within a p
period of 30 days
y from the receipt
p of
application either
(a) grant registration and provide a registration number
including a login ID and password to the applicant for accessing
the website of the Authority and to create his webpage and fill
therein the details of the proposed project; or
(b) if the application does not conform to the provisions of
the Act or the rules or regulations made there under, reject the
application for reasons to be recorded in writing.
application, writing However,
However no
application shall be rejected unless the applicant has been given
an opportunity of being heard in the matter.
matter
Grant of registration S. 5
In case the authority fails to grant registration or reject the

application, as the case may be, the project shall be deemed to have
been registered,
registered and the Authority shall within a period of 7 days of
the expiry of the period of 30 days, provide a registration number and
LogIn Id and password to the promoter for accessing the website of
the Authority and to create the webpage and to fill the details therein.
The registration granted under s. 5 shall be valid for a period

declared by
b the promoter under
nder s.
s 4(2)(l)(C) for completion of the
project or phase thereof, as the case may be.

Extension of registration S. 6
may on an application by the promoter,

The Authority may, promoter due to force
majeure, extend the registration granted under s. 5. The application
for extension should be in Form E and shall be accompanied by an
explanatory note setting out the grounds and reasons for delay in the
completion of the real esrtate project and the need for extenswion,
extenswion
along with doucments supporting such grounds and reasons.
The fee payable for extension of registration is based on area of land
proposed to be developed. The fee is the same as is payable for
application for registartion of a real estate project..
project
Where the extension of registration is due to force majeure the
A th it may in
Authority i its
it discretion
di ti i
waive th fee
the f f such
for h extension
t i
granted to any real estate project. 89
No application for extension of registration shall be rejected unless

the applicant has been given an opportunity of being heard in the
matter.
matter
The Authority may extend the registration granted to a project for
such time as it considers necessary.
necessary However,
However the extension shall,
shall in
aggregate, not exceed a period of one year. The extension may be
granted in
reasonable circumstances;
without default on the part of the promoter;
based on facts of each case; and
for reasons to be recorded in writing.

The expression force majeure shall mean a case of war,

force majeure war flood,
flood
drought, fire, cyclone, earthquake or any other calamity caused by
nature affecting the regular development of the real estate project.
project
The Authority shall intimate the grant of extension to the respective

competent authority and statutory authorities.
Revocation of registration S. 7
The Authority may revoke the registration granted under s. 5

(i) on receipt of a complaint; or
(ii) suo motu in this behalf; or
(iii) on the recommendation of the competent authority.
g
The registration will be revoked onlyy if the authorityy is satisfied that
(a) the promoter makes default in doing anything required by or under
this Act or the rules or the regulations
g made there under;;
(b) the promoter violates any of the terms or conditions of the approval
g
given byy the competent authority;
y
(c) the promoter is involved in any kind of unfair practice of
irregularities;
(d) the promoter indulges in any fraudulent practices.
Revocation of registration S. 7
The term unfair practice has been defined in an Explanation below S.

unfair practice
7(1).
Before revoking the registration, the Authority shall give to the promoter a
notice of at least 30 days, in writing, stating the grounds on which
g
registration is p p
proposed to be revoked.
The consequences of revocation are provided in sub-section (4) of
g the p
section 7 and interalia include debarring promoter from accessing
g the
website in relation to that project, specifying his name in the list of
defaulters and displayy his photograph
g on the website and also inform the
othe3r RERA in other states and union territories about such revocation;
facilitate development works to be carried out in accordance with
provisions of s. 8, etc.
Obligation of Authority consequent upon lapse of or on

revocation of registration S. 8
In the event of lapse of registration or revocation thereof, the
Authority may, consult the appropriate Government to take such
action as it may deem fit including carrying out of the remaining
development works by
(a) competent authority; or
(b) the association of allottees; or
(c) manner as maybe determined by the
in any other manner,
Authority.
Any direction,
direction decision or order of the Authority under this section
shall take effect on expiry of the period of appeal provided under the
i i
provisions off the
th Act.
A t

Obligation of Authority consequent upon lapse of or on
revocation of registration S. 8
In case of revocation of registration of a project under this Act, the
association of allottees shall have the first right of refusal for carrying
out of the remaining development works.
works
P
Provisions
i i regarding
di Separate
S t Account
A t

Deposit in a separate account
At the time of registration,
g , the p
promoter is required
q to g
give the details of the
separate bank account, which will be maintained by the promoter, with a
scheduled bank, in which 70% of the amounts realised from allottees shall
be deposited. For this purpose, Scheduled bank means a bank included
in the Second Schedule to the Reserve Bank of India Act, 1934.
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 with a scheduled bank to cover the cost of construction and the
land cost and shall be used only for that purpose.
Promoter
P t shall
h ll withdraw
ithd the
th amounts
t from
f the
th separate
t account,
t to
t cover
the cost of the project, in proportion to the percentage of completion of the
project
project.
Deposit of 70% in respect of ongoing projects

For an ongoing
g g real estate p
project
j ((within the meaning
g of the first p
proviso of
section 3(1) of the Act) in which all buildings or wings as per sanctioned
plan have not received occupancy certificate or the completion certificate
has not been issued, seventy per cent of the amount to be realized from the
allottees shall be deposited in such separate account, in accordance with
the provisions of sub-clause (D) of clause (l) of sub-section (2) of section 4
of the Act in the event where the estimated receivables of the ongoing
project is less than the estimated cost of completion of the project, then
100% of the amount to be realized from the allottees shall be deposited in
the
th said
id separate
t accountt [Rule
[R l 5 off the
th Real
R l Estate
E t t Registration,
R i t ti ROI and
d
Disclosure on Website Rules, 2017].

The withdrawal by the promoter from the separate account should be only
after it is certified by an engineer, an architect and a chartered accountant
in practice that the withdrawal is in proportion to the percentage of
completion of the project.
Rule 5 of the Maharashtra Real Estate (Regulation & Development) Rules,

2017 deals with Withdrawal of amounts deposited in separate account.
The project architect will certify, in Form A, the percentage of completion of

construction
t ti workk off each
h off the
th building
b ildi / wing
i off the
th project.
j t

The Engineer will certify, in Form B, the actual cost incurred on the
construction work of each of the building / wing of the project.
The Chartered Accountant in practice will certify, in Form C, the cost

incurred on construction cost and land cost. He will also certify the
proportion of the cost incurred on construction and land cost to the total
estimated cost of the project.
The total estimated cost of the project multiplied by such proportion shall
d t
determine
i the
th maximum
i amountt which
hi h can be
b withdrawn
ithd b the
by th promoter
t
from the separate account.

For withdrawing the amount from the separate account maintained by the
promoter with the scheduled bank, the promoter shall submit each of the
above mentioned 3 certificates to the scheduled bank operating the
separate account.
The promoter shall be required to follow the above procedure at the time of
every withdrawal from the separate account till occupancy certificate in
respect of the project is obtained.

On receipt
p of completion
p certificate in respect
p of the p
project
j the entire
balance amount lying in the separate account can be withdrawn by the
promoter.
Explanation I to rule 5 gives a list of items that shall be included in land cost
to ascertain the cost of completion of percentage of the project.
Explanation III to rule 5 states that the cost of construction for the purpose
of s. 4(2)(l)(D) shall include .
It is possible that there are certain items which are included in estimated
cost of the project but are not included in land cost and/or cost of
construction.
t ti Withdrawal
Withd l for
f these
th purposes will
ill effectively
ff ti l nott be
b
permitted.
Does it mean that during the period from the issue of occupancy certificate
till the receipt of completion certificate no amounts can be withdrawn from
the separate account
Explanation
p I.- In ascertaining
g the cost of completion
p of p
percentage
g of
the project, the land cost shall include,-
(i) The costs incurred by the Promoter for acquisition of ownership and title
of the land parcels proposed for the real estate project, including its lease
charges, which shall also include overhead cost, marketing cost, legal cost
and supervision cost;
((ii)) Premium p
payable
y to obtain development
p or redevelopment
p rights;
g ;
(iii) Amount paid for acquisition of TDR;
(iv) Premium for grant of FSI, including additional FSI (if any), fungible FSI;
and any other instruments permissible under the Development Control
Regulations;
(v) Consideration payable to the outgoing developer to relinquish the

ownership and title rights over such land parcels;
(vi) Amounts payable to State Government or Competent Authority or any

other
th Statutory
St t t Authority
A th it off the
th State
St t or Central
C t l Government,
G t towards
t d
Stamp Duty, transfer charges, registration fees etc.; and
(vii) ASR linked premiums payable by any Promoter as per requirement of

any Law, rules or regulations for obtaining right for redevelopment of lands
owned by Public Authorities;

Explanation II. Where the promoter, due to inheritance, gift or otherwise,

is not required to incur any cost towards acquisition of ownership and title
of the land parcels proposed for the real estate project, the cost of land
shall be reckoned on basis of the value of the land as ascertained from the
ASR prepared
d under
d the
th provisions
i i off the
th Maharashtra
M h ht Stamp
St Act,
A t relevant
l t
on the date of registration of the real estate project.

Explanation
p III. The cost of construction for the p
purpose
p of sub-clause ((D)) of
clause (I) of sub-section (2) of section 4, shall include all such costs, incurred
by the Promoter, towards the on-site and off-site expenditure for the
development of the Real Estate project including payment of Taxes, Fees,
Charges, Premiums, Interest etc. to any Competent Authority or Statutory
Authority off the Central
C or State
S Government
G under any laws or rules or
regulations of the time being in force including Principal sum and interest, paid
or payable to any financial institutions including scheduled banks or non-
banking financial companies etc. or money-lenders (under the Maharashtra
y g Regulation
Money-Lending g Act, 2014)) for the Real Estate Project,
j but shall not
include the sum which the promoter has raised and incurred by way of loan
obtained from such banks, non-banking finance companies or money-lenders,
for the purpose of purchase of land for the project or for obtaining the
development rights over such land. June 10, 2017 106
Jagdish T Punjabi
Explanation
p IV. In case of rehabilitation scheme undertaken under anyy
specific local law of State Government or Central Government or rules or
regulations made thereunder which requires onsite expenditures to be
made before registration of real estate project, such as expenditure towards
clearance of land of encumbrances for temporary transit accommodation,
construction of rehabilitation buildings and any other overhead costs
besides payment of ASR linked Premium, Fees and Charges, Security
Deposits, etc. to any competent authority or statutory authority is so
certified by an engineer or Architect and a Chartered Accountant in
practice,
ti then
th such
h incurred
i d expenditure
dit may be
b included
i l d d in
i costt off land
l d by
b
the Promoter.
No permission required from any authority for withdrawal of

the amount
There is no need to obtain any permission from any authoirty to withdraw

amounts deposited in the separate account and utilize the same in the
project.

Definition of co-promoter
Promoters enter into arrangements with individuals / organizations,
by which the said individuals / organizations are entitled to a share
of the total revenue generated from sale of apartments or share of
the total area developed for sale. For example, a landowner may
handover his land to a promoter and in return be entitled to 20% of
the apartments developed or 20% of the revenue generated from
sale of apartments or an investor gives money to the promoter at an
initial stage of project launch and through an arrangement with the
promoter gets entitled to a 20% share of the total area developed,
developed
which is constructed by the promoter but marketed and sold by the
investor
investor.
per order dated 11th May,
As p y, 2017 issued byy MahaRERA,, in such
scenarios, the sale proceeds to these individuals / organisations should
not be considered as cost of p
project
j and withdrawn from the designated
g
bank account merely by virtue of this arrangement. For the purpose of
g
withdrawal from the designated Bank Account, these individuals /
organizations should be considered as Promoters and hence shall be
termed as Co-Promoters.
As per the said order dated 11th May, 2017, the arrangement or
agreement of Co-Promoter with Promoter should clearly detail the share
of Co-Promoter(s) and a copy of the said arrangement or agreement
should be uploaded on the MahaRERA portal, at the time of registration,
along with other details of the Co-Promoter(s).
Co-Promoters
Such Co Promoters / Individuals / Organisation should submit a
declaration in Form B of MahaRERA (Regulation and
Development)(Registration of Real Estate Project,
Project Registration of
Real Estate Agents, Rates of Interest and Disclosures on Website)
Rules,
Rules 2017.
2017
Each of the Co-Promoters / Individuals /Organisation, entitled to
developed should open separate bank
share of the total area developed,
account for deposit of 70% of the sale proceeds realized from the
allottees.
allottees
In exercise of the powers vested in MahaRERA under Regulation No. 38 of
M h ht Real
Maharashtra R l Estate
E t t Regulatory
R l t A th it (General)
Authority (G l) Regulations,
R l ti 2017 the
2017, th
th
Office Order No. Maha-RERA/LA/32/2017 dated 11 May, 2017 notifies the
definition of the term `co-promoter as follows
co promoter
co-promoter means and includes any person(s) or
organization(s) who, under any agreement or arrangement
with the promoter of a Real Estate Project is allotted or
entitled to a share of total revenue generated from sale of
apartments or shares of the total area developed in the real
estate project. The liabilities of such Co-Promoters shall be
as per the agreement or arrangement with the Promoters,
however, for withdrawal from designated Bank Account, they
shall be at par with the Promoter of the Real Estate Project.
Withdrawal of funds - % of completion
Particulars
Total saleable area 8,000 sq. feet
Estimated Project Cost (comprising of land cost of Rs.

Rs 500 Rs 1000 lakh
Rs.
lakh and construction cost of Rs. 500 lakh)
Cost incurred till end of reporting period (comprises of Rs. 600 lakh
land cost of Rs. 500 lakh and construction cost of Rs. 100
lakh)
Total area sold till date of reporting period 1,600 sq. feet
T t l sale
Total l consideration
id ti as per sale
l agreements
t executed
t d R 400 lakh
Rs. l kh
70% to be kept in separate bank account Rs. 280 lakh
% of completion (600 / 1000 x 100) 60% of total project

cost (including land
cost)
A
Amount
t that
th t can b
be withdrawn
ithd (60% off R
Rs. 280 lakh)
l kh) R 168 lakh
Rs. l kh
Rule 5 does not provide for withdrawal of amount from

separate account in respect of an ongoing real estate project
Rule 5 of the Rules is captioned
p Withdrawal of amounts deposited
p in
separate accounts. Sub-rule (1) states that with regard to withdrawal of
amounts deposited under s. 4(2)(l)(D) of the Act, the following provisions
shall apply.
Rule 5(1)(i) deals with new projects which will be registered after
commencement. This sub-rule in item (b) states that for withdrawal of the
amount from a separate account the promoter shall submit 3 certificates,.
Rule 5(1)(ii) is captioned For ongoing projects within the meaning of the
first proviso to sub-section (1) of section 3 of the Act.. This sub-rule deals
with
ith the
th amountt to
t be
b deposited
d it d in
i the
th separate
t accountt in
i respectt off these
th
projects. However, it does not mention a word about withdrawals from
separate account by promoter of such ongoing project !!!

Points worth noting
Explanation
p I defines `land cost and Explanation
p III defines `cost of
construction. It needs to be noted that the interest on loans taken for
purchase of land does not q
p qualify
y either as `land cost or as `cost of
construction.
Further, interest on amounts borrowed for construction does not cover
interest on loans from group companies by way of inter-corporate
deposits, loans from friends / relatives of promoter, etc.
A question could arise as to whether non-scheduled banks are `financial
institutions because the language is interest paid or payable to any
financial institutions including scheduled banks or non-banking financial
companies, etc or money-lenders (under the Maharashtra Money
Lending Regulation Act, 2014) for the real estate project.
Audit of utilization of withdrawals
The promoter shall get his accounts audited within six months
after the end of every financial year by a chartered accountant in
practice and shall produce a statement of accounts duly certified
practice,
and signed by such chartered accountant. It shall be verified
during
d i theth audit
dit that
th t the
th amounts
t collected
ll t d for
f a particular
ti l project
j t
have been utilized for the project and the withdrawal has been in
compliance with the proportion to the percentage of completion of
the project.
The annual report on the statement of accounts shall be in Form
5 duly certified and signed by the chartered accountant who is the
statutory auditor of the promoters enterprise.
Points worth noting
Cost of Construction as defined in Explanation
p III includes `principal
p p sum
and interest to , how can principal sum of loan be regarded as a cost
of construction. Will this not amount to including the same amount twice
once as a component of cost incurred and second time as principal sum.
FAQs in respect of separate account

Does developer
p need to submit the certificates to Banker or retain
with him?
Answer: The original certificates have to be retained by the promoter
because the same are required to be verified and audited by the statutory
auditor of the promoters company at the end of every financial year.
Copies may also have to be submitted to the concerned bank, if demanded
by them.
Can escrow account opened with the Bank from whom loans are
availed, be treated as a separate bank account for a MahaRERA
registered
i t d project?
j t?
Answer: No. A separate bank account needs to be opened in accordance
thereunder
with the provisions of the Act and the rules made thereunder.

Can p
project
j finance taken by
yppromoters from financial institutions be
withdrawn from the designated 70% account?
Answer: Yes, if this is declared at the time of registration and subject to
provisions of Section 4 of the Act and Maharashtra Real Estate (Regulation
and Development)(Registration of Real Estate Projects, registration of Real
Estate Agents, Rates of Interest and Disclosure on Website) Rules, 2017
made thereunder. However, the money withdrawn should be utilized
towards construction expenses of the project, on priority.

In case of jjoint development
p with land owner on revenue share basis
or area share basis, whether land owners component could be
withdrawn from designated account of 70%?
Answer: The Act makes both the Promoters and the land owner or any
such parties which are beneficiary of a sale of a project and receive
payments from allottees, as Co-promoters and hence liable to adhere to the
provisions of the Act and the Rules and Regulations made thereunder. The
withdrawal of money would be subject to provisions of Section 4 of the Act
and the Maharashtra Real Estate (Regulation and
Development)(Registration
D l t)(R i t ti off Real
R l Estate
E t t Projects,
P j t Registration
R i t ti off Real
R l
Estate Agents, Rates of Interest and Disclosures on Website) Rules, 2017
thereunder
made thereunder.

Whether money
y collected from allottees towards stamp
p duty,
y,
registration, share money for society, deposits for maintenance,
corpus funds, infrastructure charges, parking charges, etc., are
required to be deposited in the designated bank account?
Answer: Yes, since these are part of the project cost.
Functions Duties and Obligations of

Functions,
Promoter

Section 11 : Functions and Duties of Promoter
Section 11
(1) The promoter shall, upon receiving his Login Id and password under
clause (a) of sub-section (1) or under sub-section (2) of section 5, as
the case may be, create his web page on the website of the
Authority and enter all details of the proposed project as provided
under sub-section (2) of section 4, in all the fields as provided, for
public viewing, including
(a) details of the registration granted by the Authority;
(b) quarterly up-to-date the list of number and types of apartments

plots, as the case may
or p y be, booked;

Section 11
(c) quarterly up-to-date the list of number of garages booked;
(d) quarterly up-to-date the list of approvals taken and the approvals
which are pending subsequent to commencement certificate;
(e) quarterly up-to-date status of the project; and
(f) such other information and documents as may be specified by

the regulations made by the Authority.

Section 11
(2) The advertisement or prospectus issued or published by the
promoter shall mention prominently the website address of the
Authority, wherein all details of the registered project have been
entered and include the registration number obtained from the
Authority and such other matters incidental thereto.
(3) The promoter at the time of the booking and issue of allotment letter
shall be responsible to make available to the allottee, the following
information, namely :

Section 11
(a) sanctioned plans, layout plans, along with specifications,
approved by the competent authority, by display at the site or
such other place as may be specified by the regulations made
by the Authority;
(b) the stage wise time schedule of completion of the project,

including the provisions for civic infrastructure like water,
sanitation and electricity.

Section 11
(4) The promoter shall
(a) be responsible for all obligations, responsibilities and functions
under the provisions of this Act or the rules and regulations
made thereunder or to the allottees as p
per the agreement
g for
sale, or to the association of allottees, as the case may be, till
y
the conveyance of all the apartments,
p ,pplots or buildings,
g , as the
case may be, to the allottees, or the common areas to the
association of allottees or the competent authority, as the case
may be:

Section 11
Provided that the responsibility of the promoter, with respect to

the structural defect or any other defect for such period as is
referred to in sub-section ((3)) of section 14, shall continue even
after the conveyance deed of all the apartments, plots or
g , as the case may
buildings, y be,, to the allottees are executed.

Section 11
(b) be responsible to obtain the completion certificate or the
occupancy certificate,
certificate or both,
both as applicable,
applicable from the relevant
competent authority as per local laws or other laws for the time
being in force and to make it available to the allottees individually
or to the association of allottees, as the case may be;
(c) be responsible to obtain the lease certificate,
certificate where the real
estate project is developed on a leasehold land, specifying the
period of lease,
lease and certifying that all dues and charges in regard
to the leasehold land has been paid, and to make the lease
certificate
tifi t available
il bl to
t the
th association
i ti off allottees;
ll tt
Section 11
(d) be responsible for providing and maintaining the essential
services on reasonable charges,
services, charges till the taking over of the
maintenance of the project by the association of the allottees;

Section 11
(e) enable the formation of an association or society or co-operative

society, as the case may be, of the allottees, or a federation of
the same, under the laws applicable:
Provided that in the absence of local laws, the association of

allottees, by whatever name called, shall be formed within a
period of three months of the majority
p j y of allottees having
g booked
their plot or apartment or building, as the case may be, in the
project;
p oject;
Rule 9 formation of legal entity
Rule 9(1) of the Rules states that the promoter shall enable formation
of legal entity like co-operative society, company, association,
federation,
federation etc.
etc under s.
s 11(4)(e).
11(4)(e)
In a case where a co-operative

co operative housing society or a company or any
other legal entity of allottees is to be constituted for a single building
not being part of a lay out or in case of layout of more than one
building or a wing of one building in the layout, the Promoter shall
submit
b it the
th application
li ti forf registration
i t ti off society
i t or a company or any
other legal entity within three months from the date on which 51% of
th allottes
the ll tt ini such
h a building
b ildi or a wing
i have
h b k d the
booked th apartment
t t

Rule 9 formation of legal entity
In a case where p
promoter is required
q to form an Apex
p Bodyy either as a
federation of separate and independent co-operative housing societies or
a companies
p or anyy other legal
g entities o9r as a Holding
g company
p y
separate3 and independent co-op Hsg societies then the Promoter shall
pp
submit an application g
for registration p Bodyy within a p
of such Apex period
of 3 months from the date of receipt of the occupancy certificate of the
last of the building which was to be constructed in the layout.
In case of failure of the promoter to form the legal entity, the Authority
may by an order direct the Promoter to apply for formation of such legal
entity or may authorise the allottees to apply for formation of such legal
entity.
Section 11
(f) execute a registered conveyance deed of the apartment, plot or

building, as the case may be, in favour of the allottee along with
the undivided proportionate title in the common areas to the
association of allottees or competent authority, as the case may
be, as p
provided under section 17 of this Act;

Section 11
(g) pay all outgoings until he transfers the physical possession of

the real estate project to the allottee or the associations of
allottees, as the case may be, which he has collected from the
allottees, for the payment of outgoings (including land cost,
ground rent, municipal or other local taxes, charges for water or
electricity, maintenance charges, including mortgage loan and
interest on mortgages or other encumbrances and such other
liabilities payable to competent authorities, banks and financial
institutions, which are related to the project):

Section 11
Provided that where any promoter fails to pay all or any of the
outgoings collected by him from the allottees or any liability,
mortgage loan and interest thereon before transferring the real
estate project to such allottees, or the association of the
allottees, as the case may be, the promoter shall continue to be
liable,, even after the transfer of the p
property,
p y, to p
pay
y such
outgoings and penal charges, if any, to the authority or person to
y are p
whom they payable
y and be liable for the cost of any
y legal
g
proceedings which may be taken therefor by such authority or
person;

Section 11
(h) after he executes an agreement for sale for any apartment, plot
or building, as the case may be, not mortgage or create a charge
on such apartment, plot or building, as the case may be, and if
any such mortgage or charge is made or created then
g anything
notwithstanding y g contained in any
y other law for the time
being in force, it shall not affect the right and interest of the
allottee who has taken or agreed
g to take such apartment,
p ,pplot or
building, as the case may be;
Section 11
(5) The promoter may cancel the allotment only in terms of the
agreement for sale:
Provided that the allottee may approach the Authority for relief, if
he is aggrieved by such cancellation and such cancellation is not
in accordance with the terms of the agreement for sale, unilateral
and without any sufficient cause.
cause
(6) The promoter shall prepare and maintain all such other details as
may be specified, from time to time, by regulations made by the
A th it
Authority.

Section 12 : Obligations of Promoter regarding veracity of the
Advertisement or Prospectus
If the followingg conditions are satisfied, the p
promoter is
required to compensate any person who has sustained any
loss or damage. The compensation shall be in the manner
provided in the Act.
Act
Conditions to be satisfied -
1 the
th person has
h made d an advance
d or deposit;
d it
2 such advance or deposit has been made on the basis of
i) information contained in the notice, advertisement or
prospectus; or
ii) any model apartment, plot or building;
3 such person has sustained a loss or damage;
4 the loss or damage is by reason of any incorrect, false
statement included therein
Section 12 : Obligations of Promoter regarding veracity of the

Advertisement or Prospectus
Consequences:
q
If the affected person intends to withdraw from the
proposed project : If the person affected by such incorrect,
false statement contained in the notice,
notice advertisement or
prospectus, or the model apartment, plot or building, as the
case may be, intends to withdraw from the proposed project,
he
h shall
h ll be
b returned
t d
i) his entire investment along with
ii) interest at such rate as may be prescribed (SBIPLR ; and
iii) the compensation in the manner provided in the Act.
Other cases : The promoter is required to compensate such

person in the manner provided in the Act.

Section 13 : No deposit or advance to be taken by Promoter
without first entering into agreement for sale.
The promoter can accept an amount upto 10% of the cost of the
apartment, as advance fee or application fee, from any person,
without
ith t entering
t i into
i t a written
itt agreementt for
f sale.
l
For accepting the amount in excess of 10% of the cost of the

apartment, the promoter should first satisfy the following
conditions
i) he enters into a written agreement for sale with such person;
and
ii) such written agreement is registered under any law for the
time being in force.

sub-section
The agreement for sale referred to in sub section (1)
1) shall be in the prescribed form [Rule 10(1) prescribes the form
of the agreement as given in Annexure A to the Rules]; and
2) shall specify
i) the particulars of development of the project including
the construction of building and apartments, along with
specifications and internal development works and external
development works;
ii) the dates and the manner by which payments towards
the cost of the apartment, plot or building, as the case may
be, are to be made by the allottees;
iii)) the date on which the p possession of the apartment,
p
plot or building is to be handed over;
iv) the rates of interest payable by the promoter to the
allottee and the allottee to the promoter in case of default, and
v) such other particulars, as may be prescribed.
The agreement
g for sale shall be in conformity
y with
i) the provisions, rules and regulations made under s. 13(2); and
ii) shall be in accordance with the model form of agreement at
Annexure À.
A . [Rule 10(1)]
The model form of Agreement for Sale at Annexure A may be

modified by the promoter provided the modified form is in conformity
with the provisions of sub-section (2) of section 13 of the Act and the
rules and regulations made there under.
Rights and interests of the allottee under the agreement for sale
under the Act or the rules or the regulations made there under
cannot be limited by virtue of any application letter,
letter allotment letter
or any other document signed by the allottee, in respect of the
apartment, plot or building, prior to the execution and registration of
the agreement for sale for such apartment,
apartment plot or building,
building as the
case may be [Rule 10(2)]
Section 14 : Adherence to sanctioned plans and project

specifications by the Promoter
Section 14
(1) The proposed project shall be developed and completed by the
promoter in accordance with the sanctioned plans, layout plans and
specifications as approved by the competent authorities.
(2) Notwithstanding anything contained in any law, contract or agreement,

after the sanctioned plans, layout plans and specifications and the
nature of the fixtures, fittings, amenities and common areas, of the
apartment, plot or building, as the case may be, as approved by the
competent authority, are disclosed or furnished to the person who
agree to take one or more of the said apartment, plot or building, as the
case may be, the promoter shall not make

Section 14
(i) any additions and alterations in the sanctioned plans, layout plans
and specifications and the nature of fixtures, fittings and amenities
described therein in respect of the apartment, plot or building, as
the case mayy be, which are agreed
g to be taken, without the
previous consent of that person:
Provided that the promoter may make such minor additions or
alterations as may be required by the allottee, or such minor
changes or alterations as may be necessary due to architectural
and structural reasons duly recommended and verified by an
authorised Architect or Engineer after proper declaration and
intimation to the allottee.

Section 14
Explanation.For the purpose of this clause, "minor additions or
alterations" excludes structural change including an addition to the
alterations
area or change in height, or the removal of part of a building, or any
change
g to the structure, such as the construction or removal or
cutting into of any wall or a part of a wall, partition, column, beam,
joist, floor including a mezzanine floor or other support, or a change
to or closing of any required means of access ingress or egress or
a change to the fixtures or equipment, etc.

Section 14
(ii) any other alterations or additions in the sanctioned plans, layout
plans and specifications of the buildings or the common areas
within the project without the previous written consent of at least
two-thirds of the allottees, other than the promoter, who have
agreed to take apartments in such building.
Explanation.For the purpose of this clause, the allottees,
irrespective of the number of apartments or plots, as the case may
be, booked by him or booked in the name of his family, or in the
case off other
th persons such
h as companies
i or firms
fi or any
association of individuals, etc., by whatever name called, booked in
its name or booked in the name of its associated entities or related
enterprises, shall be considered as one allottee only.

Section 14
(3) In case any structural defect or any other defect in workmanship,
quality
q y or p
provision of services or any
y other obligations
g of the
promoter as per the agreement for sale relating to such
p
development is brought
g to the notice of the p
promoter within a
period of five years by the allottee from the date of handing over
possession, it shall be the duty of the promoter to rectify such
defects without further charge, within thirty days, and in the
event of promoter
promoter'ss failure to rectify such defects within such
time, the aggrieved allottees shall be entitled to receive
appropriate compensation in the manner as provided under this
Act.
Section 15 : Obligations of Promoter in case of Transfer of a Real
Estate Project to a third party
liabilities in
A promoter can transfer or assign his majority rights and liabilities,
respect of a real estate project, to a third party only after obtaining
prior written consent of two-third allottees (except the promoter) and
also prior written approval of the Authority.
For the purpose of computing two-third
two third allottees,
allottees
if the allottee is an individual then such individual shall be counted
as one allottee irrespective of the number of apartments or plots,
plots as
the case may be, booked by him or booked in the name of his family.
Th term
The t `ffamily
il is
i defined
d fi d in
i s. 2(x)
2( ) to
t include
i l d husband,
h b d wife,
if minor
i
son and unmarried daughter wholly dependent on a person.

i e Company or firm or
if the allottee is other than an individual i.e.
an association of individuals then such person shall be counted as
one allottee irrespective of the number of apartments or plots,
plots as the
case may be, booked by it or booked in the name of its associated
entities or related enterprises.
enterprises The terms àssociated
associated entities
entities or
`related enterprises is not defined in the Act.
Transfer or assignment by the promoter, of his interest in a real

estate
t t project,
j t shall
h ll nott affect
ff t th allotment
the ll t t or sale
l off the
th
apartments, plots or buildings, as the case may be, in the real estate
project,
j t made
d by
b the
th former
f ( t hil ) / transferor
(erstwhile) t f promoter.
t

Consequences
q of the allottees and the authority
yppermitting
g the
transfer or assignment of the majority rights or liabilities or a
promoter in respect of a real estate project.
1) Intending promoter shall be required to independently comply

with
(i) all the pending obligations under the provisions of this Act
or the rules and regulations
g made there under;; and
((ii)) pending
p g obligations
g as p
per the agreement
g for sale entered
into by the erstwhile promoter with the allottees.

2) Transfer or assignment shall not result in the extension of time to
the intending promoter to complete the real estate project.
3) Intending promoter to comply with all the pending obligations of

the erstwhile promoter,
promoter and in case of default,
default such intending
promoter shall be liable to the consequences of breach or delay, as
the case may be,
be as provided under this Act or the rules and
regulations made thereunder.

Section 16 : Obligations of Promoter regarding insurance of real
estate project
The p
promoter shall obtain insurance in respect
p of
(i) title of the land and building as a part of the real estate project;
and
(ii) construction of the real estate project; and
(iii) all such insurances as may be notified by the appropriate
Government.
The promoter shall be liable to pay the premium and charges in
respect of the insurance specified above and shall pay the same
before transferring the insurance to the association of allottees.
allottees
Section 16 : Obligations of Promoter regarding insurance of real

estate project
At the time of p
promoter entering
g into an agreement
g for sale with the
allottee, the insurance obtained by the promoter shall stand
transferred to the benefit of the allottee or the association of
allottees, as the case may be.
All the documents relating to the insurance mentioned above, shall

be handed over to the association of the allottees.
As per Rule 9(5), the promoter is required to obtain insurance upon

receiving the certificate of registration of the real estate project from
the Authority.
y

Section 17 : Transfer of Title
Section 17 of RERDA obliges a promoter to transfer title by

executing a conveyance and also handing over physical possession
of the apartment to the allottees and of common areas to the
association of allottees or competent authority, as the case may be.
The title documents and sanctioned plans are to be handed over to
the association of allottees or competent authority, as the case may
be
be. Rule 9(2) of the Maharashtra Real Estate (Regulation and
Development) Rules, 2017 provides the time limit within which the
conveyance has to be executed.
executed
Section 17 of RERDA obliges a promoter to

(i) execute a registered conveyance deed in favor of the allottee
along with the undivided proportionate title in the common areas to
the association of the allottees or the competent authority, as the
case may be; and
(ii) hand over the physical possession of the plot, apartment or
building as the case may be,
building, be to the allottees and the common areas
to the association of the allottees or the competent authority as the
case may be,
be in a real estate project; and
(iii) hand over the other title documents pertaining to the real estate
project within specified period as per sanctioned plans as provided
under local laws. 156
(iv) after obtaining occupancy certificate and handing over physical

possession to the allottees, the promoter shall hand over the
necessary documents and plans,
plans including common areas,
areas to the
association of the allottees or the competent authority, as the case
may be,
be as per the local laws.
laws This has to be done within the time
period mentioned in the local laws. In the absence of the local laws,
these are to be handed over within a period of 30 days after
obtaining the occupancy certificate.
Section 17 : Rule 9(2)
Period for conveyance of title by promoter to allottees in case of

plots three months from the date the allottees in such plot have
paid full consideration to the promoter [Rule 9(2)(i)]
Period for conveyance of title by promoter to legal entity of allottees
in case of single building project within the period agreed upon
by the promoter for conveying title to the legal entity of allottees. In
upon the promoter shall (subject to his
case no period is agreed upon,
right to dispose of the remaining apartments, if any) execute the
conveyance within 3 months from the date of issue of occupancy
certificate or fifty one percent of the total number of allottees in such
wing have paid full consideration to the promoter,
a building or a wing, promoter
whichever is earlier [Rule 9(2)(i)] 158
Period for conveyance of title by promoter to organization of

allottees in case of Layout
(a) In case of a building or a wing of a building in a Layout -
The promoter shall execute a conveyance (subject to his right to
dispose of the remaining apartments,
apartments if any) of hte structure of that
building or wing of that building (excluding basements and podiums)
(i) within the time period agreed upon for conveying the title of
the promoter of that building or a wing of that building to the legal
entity of the allottees.

(a) In case of a building or a wing of a building in a Layout
(ii) in case no time period for conveying the title of the promoter of
that building or a wing of that building is agreed upon,
upon the earlier of
the following dates
(i) 3 months from the date of issue of occupancy certificate; or
(ii) 1 month from the date on which the co-operative society or the
p y is registered,
company g , or as the case may
y be,, the association of
allottees is duly constituted.


(b) In case of a Layout
(i) within the time period agreed upon for conveying the title of
the promoter in respect of the entire undivided or inseparable land
underneath all buildings / wings along with structures of basements
Layout
and Podiums constructed in a Layout.
(ii) in case no time period is agreed upon for conveying the title of
the promoter in respect of the entire undivided or inseparable land
underneath all buildings / wings along with structures of basements
and Podiums constructed in a Layout, the promoter shall execute
the conveyance of the entire undivided or inseparable land
underneath all buildings jointly or otherwise by earlier of the
following dates
(i) 3 months from the date of issue of occupancy certificate to the
last of the building or wing in the layout; or
(ii) 3 months from the date on which the Apex Body or Federation
or Holding
g Company
p y is registered
g or,, as the case may
y be,, the
association of allottees is duly constituted.
Section 17 :
If the promoter fails to convey the title in accordance with Rule 9(2),
in favor of co-operative society or company or association or
Federation as the case may be,
Federation, be the Authority shall by an order
direct the Promoter to convey the title in favor of such legal entity
[Rule 9(3)].
9(3)]
The said legal entity shall also be entitled to have a unilateral

deemed conveyance executed in their favor and have it registered
under the MOFA.
MOFA
Section 17 : Provisos after Rule 9(4)
After conveying the title to the association of allottees under s. 17,

the promoter shall continue to have the rights and entitlement to
advertise market,
advertise, market book,
book sell or offer to sell or allot to person to
purchase any apartment or building or plot which is still not sold or
allotted and shall be allowed to do so by the association of allottees
without any restriction or entry of the building and development of
areas [first proviso to Rule 9(4)]
common areas.
Further,
Further in such case,
case the Promoter shall be permitted the entry of
premises of the building and common areas to also discharge his
s 14(3) [second proviso to Rule 9(4)].
obligations under s. 9(4)]

Section 17 : Provisos after Rule 9(4)
In respect of a real estate project for which development or

redevelopment permissions are subject to approvals under the
provisions of specific local laws such as the Maharshtra Slum Areas
(Improvement, Clearance and Redevelopment) Act, 1971, the
Maharashtra Housing and Area Development Authority Act,
Act 1976,
1976
the Mumbai Metropolitan Region Development Authority Act, 1974,
Act 19066,
the Maharashtra Regional Town Planning Act, 19066 the Nagpur
Improvement Trust Act, 1936, etc., the conveyance of title shall be
made by the respective public authority,
authority within such specific period
as may be prescribed under the relevant law applicable to such
thereunder [third proviso to
authority or rules or regulations framed thereunder.
Rule 9(4)] 165
Section 18 : Return of Amount and Compensation
Liability
y of the p
promoter to return amount with interest
and also pay compensation -Section 18
U
Upon occurrence off the
th following,
f ll i th allottee
the ll tt may withdraw
ithd
from the project and the promoter shall be liable to return to
the allottee the amount received by him in respect of that
apartment, plot or building, as the case may be, with interest at
such rate as may be prescribed in this behalf including
compensation
p in the manner p
provided under this Act.

i) the promoter fails to complete or is unable to give

possession of an apartment, plot or building in accordance
with the terms off the agreement for
f sale or, as the case may
be, duly completed by the date specified therein; or
ii) the promoter fails to complete or is unable to give

possession of an apartment, plot or building due to
discontinuance of his business as a developer on account of
suspension or revocation of the registration under this Act or
for any other reason.
reason
event if the allottee

Upon occurrence of the above mentioned event,
does not intend to withdraw from the project, the promoter
shall pay to the allottee interest for
f every month off delay, till the
handing over of the possession, at such rate as may be
prescribed.

Sub section (2) of section 18 provides for compensation to be

Sub-section
paid by the Promoter to the allottees in case of any loss
caused to the allottee due to defective
f title off the land on which
the project is being developed or has been developed. The
compensation shall be in the manner provided under this Act.
The claim for compensation under this sub-section shall not be
barred by limitation provided under any law for the time being
in force.
Sub section (3) of section 18 provides that if the promoter fails

Sub-section
to discharge any other obligations imposed on him under this
Act or the rules or regulations made thereunder or in
accordance with the terms and conditions of the agreement for
sale, he shall be liable to pay such compensation to the
allottees, in the manner as provided under this Act.

Rights and Duties of Allottees
Section 19 : Rights and Duties of Allottees

Rights of Allottees
The allottee shall be entitled to
(1) obtain the information relating to sanctioned plans, layout plans
along
l with
i h the
h specifications,
ifi i approved
d by
b the
h competent
authority and such other information as provided in this Act or
the rules and regulations made thereunder or the agreement for
sale signed with the promoter;
(2) 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 in accordance with the terms and conditions of the
agreement for sale;
(3) To claim the possession of apartment, plot or building, as the
case may be, and the association of allottees shall be entitled to
claim the possession of the common areas, as per the
declaration given by the promoter under section 4(2)(l)(C) of the
Act;

(3) To claim the refund of amount paid along with interest at such
rate as may be prescribed and compensation in the manner as
provided under this Act, from the promoter, if the promoter fails
to comply or is unable to give possession of the apartment, plot
or building, as the case may be, in accordance with the terms of
agreement for sale or due to the discontinuance of his business
as a developer on account of suspension or revocation of his
g
registration under the provisions of this Act or the rules or
regulations made thereunder;

Rights of Allottees .
The allottee shall be entitled to . -
(5) 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.

Duties of Allottees .
(1) to make necessary payments in the manner and within the time
as spec ed in tthe
specified e sa d ag
said ee e t for
agreement o sa ea
sale ds
and a pay at tthe
shall e
proper time and place, the share of the registration charges,
municipal taxes, water and electricity charges, maintenance
charges, ground rent, and other charges, if any;
(2) to pay interest, at such rate as may be prescribed, for any delay
in payment towards any amount or charges to be paid under
sub-section (6).

(3) the obligations of the allottee to make necessary payments and

te est tthereon
interest e eo may
ay be reduced
educed when
e mutually
utua y ag eed to
agreed
between the promoter and such allottee.
(4) to participate towards the formation of an association or society
or cooperative society of the allottees, or a federation of the
same.
same
(5) to take physical possession of the apartment, plot or building as
the case may be,
be within a period of two months of the occupancy
certificate issued for the said apartment, plot or building, as the
case may be.
be

(6) participate towards registration of the conveyance deed of the

apa t e t, p
apartment, ot o
plot or bu d g, as tthe
building, e case may
ay be, as p o ded
provided
under sub-section (1) of section 17 of this Act.

Real Estate Agents
g
Registration requirement,
functions and duties
Real Estate Agents

Only registered real estate agents can facilitate sale / purchase-
No real estate agent shall facilitate the sale or purchase of or act on
behalf of any person to facilitate the sale or purchase of any plot,
apartment or building, as the case may be, in a real estate project or
part of it, being the part of the real estate project registered under s.
3, being sold by the promoter in any planning area, without obtaining
registration under section 9.
S. 9(2) states that every real estate agent shall make an application
y for registration
to the Authority g in such form, within such time and
accompanied by such fee and documents as may be prescribed.
Rule 11 of the Rules deals with application
pp for registration
g by
y the real
estate agent.
Real Estate Agents
Real estate agent is required to make an application for registration,

in writing, in case of registered real estate projects, forthwith and in
any case prior to engaging in any activity relating to marketing,
marketing
advertising, sale or purchase of any apartments.
The application shall be in Form G.
G The list of documents to be
furnished along with application is stated in Rule 11(2).
The fee for registration depends on legal status of the real estate
agent in case of individuals it is Rs. 10,000 and in case of
applicant who is other than an individual the fee is Rs.
Rs 1,00,000.
1 00 000
The fee for registration shall be paid through NEFT or RTGS system
or any other digital transaction mode.
mode
Real Estate Agents
The real estate agent, upon being engaged by the promoter under s.
4(2)(f) for a real estate project shall maintain and preserve books of
account,
account records and documents separately for each such real
estate project.
The registration granted shall be for valid for a period of five years.
years
The public authorities established under Special Local Laws which
may sell Apartments or Buildings or Plot under any real estate
project through Public Lottery as per their Rules or Regulations shall
not be required to be registered as real estate agents.
agents
The registration granted shall be valid for the State.

Real Estate Agents
Application for renewal shall be made, in Form J, at least 60 days

prior to the date of expiry of the registration granted to the real
estate agent.
agent
The fees payable on renewal are the same as fees payable on
application for a new registration.
registration
The renewal of registration shall be granted provided the real estate
agent continues to comply with the provisions and the rules and
regulations made thereunder.
Application for renewal shall be accompanied by documents
furnished along with application for new registration.
Renewal granted shall be valid for a period of 5 years.
years
Real Estate Agents
Every registered real estate agent shall

(i) prominently display the number of his Registration
Certificate at the principal place of business and at its branch offices.
offices
(ii) quote his number of their registration in all documents
relating to advertisement,
advertisement marketing,
marketing selling or purchase issued by
the real estate agent along with the number of registration certificate
of the real estate project.
project
(iii) maintain and preserve such books of account, records
and documents as he may be required in accordance with the
provisions of the Income-tax Act, 1961 or the companies Act, 2013
or under any other law applicable for the time being in force or rules

Real Estate Agents
and regulations framed thereunder and will be required to produce

them for inspection if so needed for grant or renewal of the
registration.
registration
Functions of a Real Estate Agent
The real estate agent shall provide assistance to enable the allottee
and the promoter of each real estate project, to exercise their
respective rights and fulfil their respective obligations at the time of
marketing and selling, purchase and sale of any plot, apartment or
building as the case may be and not involve himself in any unfair
building,
trade practices, namely : -

(i) making any statement, whether orally or in writing or by visible

representation which
(A) falsely or knowingly represents that services or amenities
are of a particular standard or grade;
(B) represents that the Promoter or himself has approval or
affiliation which such promoter or himself does not have;
(C) makes a false or misleading representation concerning
the services which the promoter does not have;
(ii) Permitting the publication of any advertisement whether in any

newspaper or other media, of services that are not intended to
be offered by the promoter;
(iii) Facilitate the possession of all the information and documents,
as the allottee,
allottee is entitled to,
to at the time of booking of any plot,
plot
apartment or building, as the case may be;
(iv) Discharge such other functions as prescribed by the regulations
of the Authority.

Jagdish T Punjabi
B.Com., B.G.L., FCA .
June 10, 2017 189

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The Real Estate (Regulation and Development)

Act 2016- select definitions,

Jagdish T Punjabi June 10, 2017 2

Jagdish T Punjabi June 10, 2017 3

Objects and reasons for which RERDA has been framed

Act 2016 (RERDA) is intended to

Jagdish T Punjabi June 10, 2017 4

Registration of Real Estate Project and

III Functions and Duties of Promoter 11 to 18

IV Rights and Duties of Allottees 19

V The Real Estate regulatory Authority 20 to 40

VI Central Advisory Council 41 to 42

VII The Real Estate Appellate Tribunal 43 to 58

VIII Offences, Penalties and Adjudications 59 to72

IX Finance, Accounts, Audits and Reports 73 to 78

Jagdish T Punjabi June 10, 2017 5

Relevant sections dealing with Functions and Obligations of

11 Functions and Duties of Promoter

Obligations of Promoter regarding veracity of the Advertisement or

No deposit or Advance to be taken by Promoter without first entering into

14 Adherence to sanctioned Plans and Project specifications by the Promoter

Obligations of Promoter in case of transfer of a real estate project to a third

16 Obligations of Promoter regarding insurance of Real Estate Project

18 Return of amount and compensation

Jagdish T Punjabi June 10, 2017 6

Section Brief Description

19 Rights and Duties of Allottees

Jagdish T Punjabi June 10, 2017 7

Date of coming into force of the Act

The Act has become fully

Jagdish T Punjabi June 10, 2017 8

Jagdish T Punjabi June 10, 2017 9

Section 2(b) : Advertisement

Section 2(b) : Advertisement

y document described or issued as

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"agreement for sale" means an agreement entered into between the

Jagdish T Punjabi June 10, 2017 11

Section 2(d) : Allottee

Section 2(e) : Apartment

"apartment" whether called block, chamber, dwelling unit, flat, office,

Jagdish T Punjabi June 10, 2017 13

Section 2(j) : Building

Section 2(j) : Building

"building" includes any structure or erection or part of a structure or

Jagdish T Punjabi June 10, 2017 14

Explanation - For the purpose of this clause, the expression "exclusive

Section 2(n) : Common Areas

Section 2(n) : Common Areas

"common areas" mean

(iii) the common basements,

Jagdish T Punjabi June 10, 2017 16

Jagdish T Punjabi June 10, 2017 17

Section 2(o) : Company

Section 2(o) : Company

"company" means a company incorporated and registered under the

(i) a corporation established by or under any Central Act or State

Jagdish T Punjabi June 10, 2017 18

Section 2(m) : Commencement Certificate

"commencement certificate" means the commencement certificate

Jagdish T Punjabi June 10, 2017 19

Section 2(p) : Competent Authority

Section 2(p) : Competent Authority