Registration of Promoter under RERA

RERA or Real Estate (Regulation and Development) Act, 2016, partially came into force from May 1, 2016 and all its remaining provisions came into effect from May 1, 2017. RERA was enacted to establish the Real Estate Regulatory Authority for regulation and promotion of the real estate sector and to ensure sale of plot, apartment or building or sale of real estate project, in an efficient and transparent manner and to protect the interest of consumers in the real estate sector, providing for mechanism including appointments of State wise Regulators.

 

This Act is one of the landmark legislation passed by the Government of India with an objective to reform the real estate sector in the country, to streamline and regulate by incorporating various measures to inculcate financial discipline, transparency and accountability and to safeguard the general public by prescribing adequate procedures and penal provisions.

In order to achieve this broad objective, the Act makes provisions for registration of new and ongoing real estate projects and of the real estate agents, besides laying down the functions, duties and obligations of the promoters.

Registration of Real Estate Project

RERA states that no promoter shall advertise, market, book, sell or offer for 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, in any planning area, without registering the real estate project with the Real Estate Regulatory Authority established under this Act. This is applicable for all ongoing projects as on the date of commencement of this Act and for which the completion certificate has not been issued and for all real estate projects commencing construction after the date of commencement of this Act. In case where the real estate project is to be developed in phases, every such phase shall be considered a standalone real estate project, and the promoter shall obtain registration under this Act for each phase separately.


Promoter is not required to register the real estate project where the area of land proposed to be developed does not exceed five hundred square meters or the number of apartments proposed to be developed does not exceed eight inclusive of all phases and for such real estate project in which renovation or repair or re-development is to be done and which does not involve marketing, advertising, selling or new allotment of any apartment, plot or building, as the case may be.

Promoter

Promoter is a person:

  1. Who constructs or causes to be constructed an independent building or a building consisting of apartments, or converts an existing building or a part thereof into apartments, for the purpose of selling all or some of the apartments to other persons and includes his assignees.
  2. 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.
  3. Any other person who acts himself as a builder, coloniser, contractor, developer, estate developer or by any other name or claims to be acting as the holder of a power of attorney from the owner of the land on which the building or apartment is constructed or plot is developed for sale.
  4. Such other person who constructs any building or apartment for sale to the general public.
  5. 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.

Registration process of Real Estate Project

Every promoter shall make an application to the Authority for registration of the real estate project in such form, manner, within such time and accompanied by such fee as may be specified by the regulations made by the Authority. Each state has its own rules and regulations to be followed.

The promoter shall enclose the following information along with the application:

Brief details of the Enterprise
  1. Its name,
  2. Registered office address
  3. Type of enterprise (Proprietorship, Societies, Partnership, LLP, Companies, Competent Authority)
  4. Particulars of Enterprise registration with appropriate authorities - CIN, etc
  5. Brief detail of the projects launched by the Promoter , in the past 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; Prior registration of real estate project with Real Estate Regulatory Authority with their Application for registration of real estate projects.
Information about the Promoters of the Enterprise
  1. Names, PAN, Aadhar Card Number and Photographs of the Promoters of the Enterprise.
Information and Documents of the Real Estate Project to be Constructed
  1. 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.
  2. 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 phases.
  3. 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.
  4. The plan of development works to be executed in the proposed project and the proposed facilities to be provided thereof including firefighting facilities, drinking water facilities, emergency evacuation services, use of renewable energy.
  5. The location details of the 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.
  6. Proforma of the allotment letter, agreement for sale, and the conveyance deed proposed to be signed with the allottees.
  7. 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.
  8. The number and areas of garage for sale in the project.
  9. The names and addresses of his real estate agents, if any, for the proposed project.
  10. The names and addresses of the contractors, architect, structural engineer, if any and other persons concerned with the development of the proposed project.
A declaration, supported by an affidavit, which shall be signed by the Promoter or any person Authorised by the Promoter, stating:
  1. That he has a legal title to the land on which the development is proposed along with legally valid documents with authentication of such title, if such land is owned by another person.
  2. That the land is free from all encumbrances, or as the case may be details of the encumbrances on such land including any rights, title, interest or name of any party in or over such land along with details.
  3. The time period within which he undertakes to complete the project or phase thereof, as the case may be.
  4. That seventy percent. of the amounts realised for the real estate project from the allottees, from time to time, shall be deposited in a separate account to be maintained in a scheduled bank to cover the cost of construction and the land cost and shall be used only for that purpose.
  5. That he shall take all the pending approvals on time, from the competent authorities.
  6. That he has furnished such other documents as may be prescribed by the rules or regulations made under this Act.
  7. Such other information and documents as may be prescribed.

Registration number, including a Login Id and Password of a Real Estate Project

On receipt of application the Authority shall within a period of thirty days grant registration subject to the provisions of this Act and the rules and regulations made thereunder, 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 web page and to fill therein the details of the proposed project.

The Authority may even reject the application for reasons to be recorded in writing by giving the applicant an opportunity of being heard in the matter.

However, if the Authority fails to grant the registration or reject the application, as the case may be, the project shall be deemed to have been registered, and the Authority shall within a period of seven days of the expiry of the said period of thirty days, provide a registration number and a Login Id and password to the promoter for accessing the website of the Authority and to create his web page and to fill therein the details of the proposed project.

Project web page on the Website of the Authority

The promoter shall, upon receiving his Login Id and password create his webpage on the website of the Authority and enter all details of the proposed project as statutorily required for public viewing, including:

  1. Details of the registration granted by the Authority.
  2. Quarterly up-to-date the list of number and types of apartments or plots, as the case may be, booked.
  3. Quarterly up-to-date the list of number of garages booked.
  4. Quarterly up-to-date the list of approvals taken and the approvals which are pending subsequent to commencement certificate.
  5. Quarterly up-to-date status of the project.
  6. Such other information and documents as may be specified by the regulations made by the Authority.

A "real estate project" means the development of a building or a building consisting of apartments, or converting an existing building or a part thereof into apartments, or the development of land into plots or apartment, as the case may be, for the purpose of selling all or some of the said apartments or plots or building, as the case may be, and includes the common areas, the development works, all improvements and structures thereon, and all easement, rights and appurtenances belonging thereto.

Yes. "Building" includes any structure or erection or part of a structure or erection which is intended to be used for residential, commercial or for the purpose of any business, occupation, profession or trade, or for any other related purposes.

The registration granted shall be valid for a period declared in the Application made by the promoter for completion of the project or phase thereof, as the case may be.

The registration may be extended by the Authority on an application made by the promoter due to force majeure, in such form and on payment of such fee as may be specified by regulations made by the Authority. Each state has its own rules and regulations. The Authority may also in reasonable circumstances, without default on the part of the promoter, based on the facts of each case, and for reasons to be recorded in writing, extend the registration granted to a project for such time as it considers necessary, which shall, in aggregate, not exceed a period of one year: The authority will not reject any  application for extension of registration unless the applicant has been given an opportunity of being heard in the matter.

The Authority may, on receipt of a complaint or suo motu in this behalf or on the recommendation of the competent authority, revoke the registration granted after being satisfied that:

  1. The promoter makes default in doing anything required by or under this Act or the rules or the regulations made thereunder.
  2. The promoter violates any of the terms or conditions of the approval given by the competent authority.
  3. The promoter is involved in any kind of unfair practice or irregularities.

The term "unfair practice" means a practice which, for the purpose of promoting the sale or development of any real estate project, the promoter adopts any unfair method or unfair or deceptive practice of making any statement, whether in writing or by visible representation which:

  1. Falsely represents that the services are of a particular standard or grade.
  2. Represents that the promoter has approval or affiliation which such promoter does not have.
  3. Makes a false or misleading representation concerning the services.

The Authority, upon the revocation of the registration:

  1. Shall debar the promoter from accessing its website in relation to that project and specify his name in the list of defaulters and display his photograph on its website and also inform the other Real Estate Regulatory Authority in other States and Union territories about such revocation or registration.
  2. Shall facilitate the remaining development works to be carried.
  3. Shall direct the bank holding the project back account, to freeze the account, and thereafter take such further necessary actions, including consequent de-freezing of the said account, towards facilitating the remaining development works.
  4. May, to protect the interest of allottees or in the public interest, issue such directions as it may deem necessary.

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.

Yes. The Act covers both private and public bodies which develop real estate projects for the purpose of selling all or some of the apartments or plots.

The promoter has the power to declare the time period within which he undertakes to complete the project or phase thereof in the Declaration to be filed along with the Application for Registration. Thereafter, on an application made by the promoter, the Authority may extend the registration due to force majeure for a period not exceeding one year.

If any promoter contravenes the provisions for non-registration of ongoing project, he shall be liable to a penalty which may extend up to ten per cent. of the estimated cost of the real estate project as determined by the Authority and if any promoter does not comply with the orders, decisions or directions issued or continues to violate the provisions for non-registration of ongoing project, he shall be punishable with imprisonment for a term which may extend up to three years or with fine which may extend up to a further ten per cent. of the estimated cost of the real estate project, or with both. Further, if any promoter provides false information or contravenes the provisions for new real estate projects, he shall be liable to a penalty which may extend up to five per cent. of the estimated cost of the real estate project, as determined by the Authority.

The promoter at the time of the booking and issue of allotment letter shall be responsible to make available to the allottee,

  1. The 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.
  2. The stage wise time schedule of completion of the project, including the provisions for civic infrastructure like water, sanitation and electricity

The late fees payable for delay in making application for extension of a project normally differs from state to state. For instance, fees can be as given below:

Sr. No.

Tenure

Late Fee

1

3 months prior to expiry of registration

No late fee

2

Within 3 months before expiry of registration 

50% of Registration Fee

3

Within 3 months after expiry of registration 

75% of Registration Fee

4

After 3 months and within 12 months after expiry of registration

100 % of Registration Fee

 

The fees payable for extension of a project normally differs from state to state. For instance, fees can be as given below:

Sr. No

Extension of time period of completion of project

Remark

1

Upto 3 months

25 % of basic fees

2

Above 3 months & upto 6 months

50 % of basic fees

3

Above 6 months & upto 1 year

Equal to basic fees

The fees payable for registration of a project normally differs from state to state. For instance, the fees can be as given below:

Sr

Particulars

For less than 1000 Sq. Mts. (Fees per Sq. Mts.)

For more than 1000 Sq. Mts. (Fees per Sq. Mts.)

Maximum amount

1

Group Housing

5

10

5,00,000

2

Mixed Development

10

15

7,00,000

3

Commercial Project

20

25

10,00,000

4

Plotted Development

5

5

2,00,000

What's Included

  • Consultation with our experts
  • Application Drafting and Filing
  • Obtaining RERA Registration Certificate

 

Documents Required

  • Photographs of the Chairman /Managing Director/Directors/partners/sole proprietors and authorized representative etc. of the applicant, Co., firm etc. which should be in JPEG/JPG or in PNG format.
  • PAN Card and Aadhar Card copy of the Chairman, Managing Director, Director of the Company, Society, Trust, Authority as required.
  • Copy of CIN No. of the company.
  • All the documents of the Real Estate project to be constructed as separately mentioned in Registration process of the Real Estate project.
  • Copy of license along with schedule of land.
  • Service plans showing the services on the layout plan.
  • Documents relating to the entry of license and collaboration agreement in the revenue record.
  • In case of a plotted colony, the latest layout plan.
  • Demarcation plan.
  • Zoning plan.
  • In case of group housing/ commercial sites, a copy of the approved Zoning plan.
  • A complete set of the last approved building plans.
  • Cash Flow Statement of the proposed Project.
  • Certificate from a Chartered Accountant certifying that the information provided by the applicant in Form REP-?-cx is correct as per books of Accounts/ Balance sheet of the applicant.
  • Non default Certificate from a Chartered Accountant.

Registration of Promoter under RERA


No promoter can advertise, sell or offer for sale any apartment or building without registering themselves with RERA authorities in their state. Get yourself registered under RERA with Filecrat and get your RERA Registration Certificate.

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