RERA (Real Estate Regulatory Authority) – the statutory framework under the Real Estate (Regulation and Development) Act 2016 regulating real estate projects across India. Mandates developer registration, 70% escrow fund utilization, quarterly disclosure, 5‑year defect liability, and homebuyer compensation for delay. 2025 Supreme Court landmark: housing is a fundamental right (Art. 21).
RERA (Real Estate Regulatory Authority) is India's statutory framework established under the Real Estate (Regulation and Development) Act 2016 to regulate the real estate sector. It ensures transparency, protects homebuyers from project delays, and mandates strict developer registration and financial discipline.
| Statutory Requirement | Detail | Legal Basis |
|---|---|---|
| Applicability | Projects >500 sq.m. OR >8 units | Section 3 |
| Exemptions | Individual plots; renovation; projects with CC/OC before May 1, 2017 | Section 3(2) |
| Registration Fee (Bihar) | Residential: ₹5-10/sq.m.; Commercial: ₹20-25/sq.m. | RERA Bihar Rules |
| 70% Escrow Rule | 70% of project receivables in separate bank account | Section 4 |
| Defect Liability | 5 years post-possession; repair within 30 days | Section 14 |
| Compensation for Delay | SBI MCLR + 2% interest | Section 18 |
The RERA framework transformed the Indian real estate sector from a fragmented, unregulated market into a highly structured, statutory ecosystem. Understanding its legal weight is crucial for protecting capital and ensuring project delivery.
Section 3 – Absolute prerequisite
A promoter is legally barred from advertising, marketing, booking, or selling any plot, apartment, or building without prior RERA registration. Non‑compliance attracts penalties of up to 10% of estimated project cost and potential imprisonment up to 3 years.
Section 18 – Absolute right
If a developer fails to hand over possession as per the Agreement for Sale, they are liable to refund the entire amount or pay monthly interest at SBI MCLR + 2%. In Relationship Properties Pvt. Ltd. v. Veena Ravishankar (2025), REAT held that RERA registration extension does not automatically extend the contractual possession date – only COVID‑19 force majeure is excludable.
Mansi Brar Fernandes (2025 SC)
The September 2025 Mansi Brar Fernandes judgment declared that the right to housing is a facet of the fundamental right to life under Article 21. The Court established the 'possession test' – possession of a dwelling unit is the litmus test of genuine intent. Speculative investors cannot trigger IBC proceedings, though they retain rights to recover principal through RERA or civil courts.
We provide a free initial consultation for delayed possession claims, carpet area disputes, or developer non-compliance.
Form A – Step-by-step
Developers must file Form A with verified land titles, sanctioned layout plans, and strict completion timelines. Each phase in a phased development requires separate registration.
Upon approval, state authorities issue a unique alphanumeric registration number (e.g., P52100012345 for MahaRERA), enabling public verification on the official portal.
2025 Amendment: Any project functioning without a valid Completion Certificate is legally deemed an 'ongoing project' and immediately brought under strict RERA purview.
Fee structure
Funds ring‑fenced
Promoters must deposit 70% of all project receivables (covering land and construction costs) into a separate escrow account maintained in a scheduled bank. These funds are legally ring‑fenced for land and construction costs only.
Withdrawal Protocol: Withdrawals are proportionate to the percentage of completion and strictly require tripartite certification from an architect, engineer, and chartered accountant in practice.
Transparency obligation
Developers must update their project dashboard on the state RERA portal every quarter. Mandatory disclosure includes: site photographs, exact fund utilization metrics, status of pending statutory approvals, and revised delivery timelines.
In Bihar: Quarterly progress report submission fee is ₹1,000 per project. Non‑disclosure or falsification constitutes a continuous breach, triggering financial penalties and substantiating homebuyer claims for deemed delay.
Carpet area is legally defined as the net usable floor area of an apartment, excluding external walls, service shafts, and balconies. Developers must price and sell properties based strictly on this exact usable area.
If your developer charged you for super built‑up area or delivered less carpet area, you may be entitled to refund and compensation under RERA.
Under RERA Section 14, developers are legally obligated to repair any structural defects or poor workmanship at their own cost for five years after handing over possession. The builder must rectify the reported issue within 30 days of the homebuyer's written complaint. Failure allows the allottee to claim compensation.
| Forum | Best For | Key Feature |
|---|---|---|
| RERA Authority | Project‑specific delays, escrow violations, carpet area disputes | 60‑day target; low fees (₹1,000‑₹5,000) |
| Consumer Forum (NCDRC/SCDRC/DCDRC) | Comprehensive compensation including mental agony | No pecuniary limit for RERA claims; broader scope |
| IBC (NCLT/NCLAT) | Chronically stalled projects, insolvent developers | Homebuyers = financial creditors (Section 5(8)(f)) – Mansi Brar Fernandes 2025 excludes speculative investors |
2025 SCC OnLine SC 1972 (September 2025)
The most consequential RERA judgment since 2016. Declared that the right to housing is not merely a contractual entitlement but a facet of the fundamental right to life under Article 21. Established the possession test – possession of a dwelling unit is the litmus test of genuine intent. Speculative investors cannot trigger IBC; genuine homebuyers are financial creditors. RERA authorities must be armed with power, resources, and enforcement tools.
(2019) 8 SCC 416
Upheld the 2018 amendment to IBC Section 5(8)(f), recognizing real estate allottees as financial creditors. RERA and IBC operate concurrently – allottees can choose either forum. Threshold: minimum 100 allottees or 10% of total allottees to file Section 7 petition.
(2020) – Concurrent Jurisdiction
RERA Act does not bar homebuyers from approaching Consumer Forums. The remedies under the Consumer Protection Act are in addition to, not in derogation of, RERA. Established the principle of concurrent jurisdiction.
WBREAT 2026 – Carpet Area
West Bengal REAT held that 'carpet area' must strictly conform to the statutory definition of net usable floor area. Promoters cannot rely on tolerance clauses, plaster thickness, or engineering explanations to justify shortfall. Tolerance is allowed only in sanctioned plans and common facilities.
| State RERA | Disposal Rate | Conciliation |
|---|---|---|
| MahaRERA | 82.03% | Yes (Conciliation Forum) |
| UP RERA | 86.71% | Yes (Settlement Bench) |
| HRERA‑Gurugram | 93.62% | No |
| K‑RERA | 81.54% | Lok Adalat referrals |
| RERA Bihar | Data not published | No |
RERA Bihar (Bihar Real Estate Regulatory Authority) was constituted on April 28, 2017. Headquartered at 6th Floor, BSBCC Campus, Hospital Road, Shastri Nagar, Patna – 800023.
Applicability
Exemptions: Plots ≤500 sq.m; projects with ≤8 flats; projects with CC before May 1, 2017; renovation/repair work without new allotments.
Online check
Visit rera.bihar.gov.in → 'Projects' → 'Search Project'. Filter by project name, promoter, RERA number, location, or district. Verify: unique RERA Registration Number, promoter details, total land area, expected completion date, current completion percentage, approved plans, quarterly progress reports, and any complaints.
Step‑by‑step
Our team is ready to answer your questions and provide a free initial assessment of your RERA matter.
Get personalized advice on your RERA matter from a Patna High Court advocate with 15+ years of RERA litigation experience.
Senior Founder, Sugam Tax & Legal Multiservices LLP | Patna High Court
Bihar State Bar Council – Enrolment No. 3309/2010 | District Bar Association, Patna – Member ID: 8648
Md Manzar Alam is a seasoned Advocate of the Patna High Court with 15+ years of active standing at the Bar. He is the Founder‑Director of Sugam Tax & Legal Multiservices LLP, specializing in RERA Real Estate compliance and litigation under the Real Estate (Regulation and Development) Act, 2016.
Holding an LL.B. and an MBA in Finance & Operations (Jamia Hamdard, New Delhi), he provides rare dual‑domain expertise essential for Mansi Brar Fernandes (2025) genuine homebuyer vs. speculative investor test, Section 18 compensation claims, carpet area disputes (PS Group Realty), RERA Bihar registration and complaint filing, and NCDRC/Consumer Forum litigation.
Before investing in any real estate project or filing a RERA complaint, it is vital to ascertain your rights and the developer's compliance. Our team provides an objective, zero‑obligation initial consultation for RERA project verification, delayed possession claims, or carpet area disputes.
In‑person at our Patna City office, or by phone / video call. We'll review your case, identify legal defects, and give you a clear strategy – at no charge.
Advocate Md Manzar Alam also available directly at:
+91 8252908693 | advocatemanzar.com
