Insights & Updates

RERA Compliance for Builders and Developers

Understand key filing deadlines, penalties, common pitfalls, and proactive compliance strategies.

August 21, 2025

August 21, 2025

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Introduction

The Real Estate (Regulation and Development) Act, 2016—popularly known as RERA—has brought much-needed transparency, accountability, and structure to India’s real estate sector. For builders and developers, RERA compliance isn’t just a legal requirement; it’s a benchmark of credibility in an industry long plagued by delays and misinformation.
In this blog, we decode what RERA compliance entails, why it matters, and how professional support can ensure your project stays on the right side of the law.

Why RERA Compliance Matters

Prior to RERA, the real estate industry operated in a loosely regulated environment. Homebuyers had limited protection, and developers often faced project delays, disputes, and reputational damage.

RERA has fundamentally changed that. Compliance with RERA:

Ensures smoother project execution and delivery
Builds trust with investors and buyers
Reduces the risk of legal action or penalties
Helps in raising institutional funding

Who Needs to Register Under RERA?

According to the Act, the following are required to register:

All residential and commercial projects exceeding 500 square meters or more than 8 apartments
Ongoing projects that haven’t received a completion certificate
Real estate agents facilitating sales or purchases

Each project must be registered with the respective state’s RERA authority before marketing, selling, or advertising.

Key Compliance Requirements for Builders and Developers

RERA compliance includes several ongoing obligations:

1. Project Registration

Must include detailed disclosures: land title, project layout, approvals, and timelines
Registration fee to be paid and unique RERA number issued

2. Fund Utilization

70% of the funds collected from buyers must be deposited in a separate bank account
These funds should only be used for that specific project

3. Quarterly Updates

Developers must upload project progress (construction status, sales, etc.) every quarter on the RERA website

4. Adherence to Timelines

The project must be completed by the committed deadline or face penalties

5. Defect Liability

Developers are liable for structural defects for 5 years post possession

6. No False Advertising

All marketing materials must reflect only what’s filed with RERA

Consequences of Non-Compliance

Failure to comply with RERA provisions can lead to

Fines of up to 10% of the project cost
Imprisonment up to 3 years
Deregistration and cancellation of the project
Loss of buyer and investor confidence

How a CA Firm Can Help with RERA Compliance

A Chartered Accountant plays a critical role in helping developers:

Prepare and review documents for project registration
Track fund usage and ensure 70:30 compliance
Prepare quarterly updates for upload to the RERA portal
Ensure GST, Income Tax, and audit alignment with RERA filings
Conduct internal audits for compliance gaps
Liaise with legal teams to ensure contract and buyer agreement compliance

Final Thoughts

RERA compliance is not a one-time task but an ongoing commitment to transparency and accountability. For developers, it not only ensures lawful execution but also acts as a powerful differentiator in a competitive market

Partnering with a qualified CA firm ensures that all regulatory checkboxes are ticked—so you can focus on what you do best: building.

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