Since the Real Estate (Regulation and Development) Act came into effect in 2017, it's become one of the most referenced — and most misunderstood — pieces of consumer protection law in Indian real estate. It genuinely shifted power toward buyers in several important ways, but it isn't a blanket guarantee against every kind of project risk.
What RERA Actually Does
- Mandatory project registration: developers must register projects with the state RERA authority before marketing or selling units, and disclose project details, layout plans, and timelines publicly.
- Escrow accounts: 70% of funds collected from buyers must be deposited in a separate escrow account used only for that specific project's construction and land cost — this was designed specifically to stop developers from diverting one project's funds to another.
- Carpet area as the standard: builders must quote and sell based on carpet area, not the more inflated super built-up area, closing a long-standing source of buyer confusion.
- Defect liability period: developers are liable to fix structural defects reported within five years of possession, at no extra cost to the buyer.
- A formal grievance mechanism: buyers can file complaints with the state RERA authority for delays, false advertising, or non-compliance, with a faster resolution track than ordinary civil courts.
Where It Falls Short
RERA is implemented and enforced at the state level, and the quality of enforcement varies considerably — some state authorities move complaints quickly, others are badly backlogged. It also doesn't cover resale transactions between two private individuals, only primary sales from a registered developer. Projects that began before RERA's cutoff in a given state may have partial or no coverage depending on their registration status. And while escrow rules exist on paper, enforcement against a developer who violates them still requires a formal complaint and follow-through — it isn't automatic.
What Buyers Should Still Do Themselves
RERA registration is a floor, not a ceiling. Always check a project's RERA registration number directly on the state authority's website rather than trusting a number printed in a brochure, read the disclosed timeline and any amendments to it, and keep every piece of written communication with the developer — RERA complaints move faster and more favourably when backed by a clear paper trail rather than verbal assurances.
