RERA Act

Fiscal discipline will play a critical role in project development and requires utmost importance

70% of the funds collected from allottees need to be parked in the project account.
Withdrawls to cover construction and land cost.
In proportion of the % completion method.
Withdrawls to be certified by Engineer, Architect and CA.
Provision for RERA to freeze project bank account upon non-compliance.
Project Account to be Audited/FY. Copy to be submitted to RERA.
Provision stronger financial penalties for RERA non-compliance.
Interest on delay will be same for customer and promoter.
Promoter to compensate buyer for incorrect statement with full rerun of property cost with interest.

Structured communication is required to furnish all project related information to the customers.

Number, type & carpet area of apartments
Consent from affected allottees for any major addition or alteration
Consent of 2/3rd allottees for any other addition or alteration
No false statements or commitments in advertisement
Quarterly updating RERA website with details such as unsold inventory & pending approvals
No arbitrary cancellation of units by promoter
Project complition time frame
Informing allottees for any minor addition or alteration
No Launch or advertisement before registration with RERA
Consent of 2/3rd allottees for transferring majority rights to 3rd party

A PMO would be required to track and monitor developments as per defined project plans

Quarterly update of project progress along with pending approvals on RERA website
Every office of the company, who as in charge or responsible will be liable for the conduct of the company and deemed guilty
Offence by an officer committed with the consent or connivanc of any director, manager, secretary or other officer of the company, will also be guilty

Registration of all projects & brokers/agents and a strong dispute management will be

Authenticated copy of all approvals, commencement certificate, sanctioned plan, layout plan of development work, proposed facilities, proforma allotment letter, agreement for sale & conveyance deed to be given when applying for project registration with RERA
Registrations of brokers/agents with RERA
Maximum 1 year extension in case of delay due to no fault of developer
Annual audit of projects account by a CA
Dispute resolution within 6 months at RERA and FERA appellate rebalance
Developers to share details of projects launched in last 5 years with status and reason for delay with RERA
Conveyance deed for common area in favor of RWA
Mandatory registration of new and existing projects with RERA before launch
Separate registration of different phases of a single projects
Construction and land title insurance
Project completion time period

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