- Objective: Bring transparency and safety for consumers in residential/commercial projects.
- Key Provisions:
- Regulator: Mandates setting-up of real estate regulatory authorities (RERAs) and appellate tribunals in all states/UTs.
- Registration: Mandatory registration of projects with RERA (land > 500 sq. meters or >8 apartments).
- Disclosures: Publicly accessible disclosures of project/promoter details, self-declared timelines.
- Standardization: Defines key terms like ‘apartment’, ‘carpet area’.
- Ring-fencing of receivables: Promoters must park 70% of project receivables in separate account.
- Project Sanctity: Promoter cannot alter plans without 2/3 allottee consent.
- Legal Recourse: Time-bound resolution of complaints, refund with interest/compensation for promoter failure.
- Penalties: Monetary penalties and imprisonment for defaults.