The Real Estate (Regulation and Development) Act, 2016 is an Act of the Parliament of India that seeks to protect home-buyers and help boost investment in the real estate industry.Wikipedia
The Act provides for a Real Estate Regulatory Authority in each state, which regulates the sector and also works as an adjudicating body for quick settlement of disputes.Wikipedia
The Uttar Pradesh Real Estate Regulatory Authority (UP RERA) directed builders to obtain written consent from two-thirds of allottees for building plan changes under Section 14 of the Act.Hindustan
Key facts
| Enacted and passed | Passed by Rajya Sabha on 10 March 2016 and Lok Sabha on 15 March 2016; came into force on 1 May 2016Wikipedia |
|---|---|
| Legal nature | Act of the Parliament of IndiaWikipedia |
| Regulator | A Real Estate Regulatory Authority (RERA) in each stateWikipedia |
| Structure | 10 chapters and 92 sectionsWikipedia |
| Current UP directive | Two-thirds written allottee consent for building plan changes under Section 14Hindustan |
Key features and how it works
- Makes registration of real estate projects mandatory with the State RERA; approval or rejection of an application is due within 30 days.Wikipedia
- Requires real estate agents to register and quote a single registration number in every sale they facilitate.Wikipedia
- Requires builders to quote prices on carpet area, not super built-up area, and to disclose carpet area; carpet area includes usable spaces such as kitchen and toilets.Wikipedia
- Requires 70% of the money to be deposited in bank accounts through cheques, to keep unaccounted money out of the sector.Wikipedia
- Sets penalties for non-registration, up to 10% of the estimated project cost, and imprisonment for non-compliance with orders of the State RERA.Wikipedia
- Under the UP directive, builders must explain how proposed changes affect carpet area and common areas, specify what construction is added or removed, and use the prescribed consent format.Hindustan
Static GK
- Uttar Pradesh Real Estate Regulatory Authority (UP RERA): the state real estate regulator for Uttar Pradesh, with a Lucknow headquarters and a Greater Noida office.up-rera.in
- The UP RERA directive identifies an allottee through an agreement for sale.Hindustan
- Section 84 of the Act: each State Government must make rules within six months of the Act being enforced.Wikipedia
Achievements
- The Act gives buyers a legal route to a dedicated regulator and to speedy adjudication of disputes.Wikipedia
- Carpet-area pricing and mandatory disclosure make prices easier to compare across projects.Wikipedia
- The UP RERA directive makes written, detailed allottee consent a condition for plan changes, and rejects general consent given without full information.Hindustan
Challenges
- Builders may still pressure buyers into signing without full disclosure, which is the problem the UP directive targets.Hindustan
- Consent collection from a large group of allottees is hard to verify without a standard format and an allottee contact list, which is a practical burden on both builders and the regulator.
- Frequent amendments and state-level rules can cause different levels of protection across states.
Way forward
- Monitor compliance through the consent format and complaint records, so that the directive has a measurable effect.
- Keep the RERA online portals up to date for allottees to verify project registration and payment accounts.
- Coordinate state regulators so that disclosure and consent rules are applied consistently across states.
Timeline
12 November 2026
UP RERA directive requires written consent from two-thirds of allottees, with full disclosure of plan changes, for building plan changes under Section 14.
Read the story1 May 2017
The remaining provisions of the Act came into force.Wikipedia
31 October 2016
The Central Government released the Real Estate (Regulation and Development) (General) Rules, 2016, for the Union Territories without Legislature.Wikipedia
1 May 2016
The Act came into force with 61 of 92 sections notified.Wikipedia
15 March 2016
The Lok Sabha approved the Bill.Wikipedia
10 March 2016
The Rajya Sabha approved the Bill.Wikipedia
December 2015
The Union Cabinet approved 20 major amendments to the Bill based on a Rajya Sabha committee's recommendations.Wikipedia
2013
The Real Estate Regulatory Authority (RERA) Bill was introduced.Wikipedia
Every new story on this subject is added here automatically.
Frequently asked questions
Who is an allottee under the RERA Act?
Q: How does the UP RERA directive identify an allottee? A: It identifies an allottee through an agreement for sale.Hindustan
What does UP RERA require for a building plan change?
Q: What does UP RERA require for a building plan change? A: Written consent from two-thirds of allottees is required in the prescribed format. Consent without full information is not accepted.Hindustan
What is the Act's pricing rule?
Builders must quote prices on carpet area rather than super built-up area and must disclose carpet area.Wikipedia
When did the Act come into force?
It came into force on 1 May 2016, with the remaining provisions in force from 1 May 2017.Wikipedia
GS paper mapping
- GS-2Governance: laws and regulatory bodies; consumer protection and homebuyer rights
- GS-2Statutory bodies and their functions (State RERA, appellate tribunal)
- GS-3Infrastructure and housing: real estate sector regulation and transparency
Sources
Every fact on this page was checked against these pages.
