RERA REGISTRATION
RERA is the national law enacted in 2016 which aims to regulate and promote the real-estate sector in India by increasing transparency, protecting home-buyers’ interests, and ensuring timely completion of projects. Under RERA, each state sets up its own authority (in Chhattisgarh this is Chhattisgarh Real Estate Regulatory Authority, or CG-RERA) which handles registration of real estate projects, promoters, real-estate agents, oversight and grievance redressal.
WHY RERA REGISTRATION MATTERS IN CHHATTISGARH
- If a builder/promoter advertises or sells apartments, plots, or buildings without registering the project with CG-RERA when required, they can face penalties up to 10 % of the project cost and/or imprisonment under Section 59 of the Act.
- For buyers, a registered project means the promoter must disclose important information (approvals, layout, timeline) and follow rules like escrow account usage, thereby reducing risk of delays or fund diversion.
- For developers/promoters, registration enables them to legally market and sell the project, secure bank funding, build trust, and meet regulatory compliance.
KEY OBLIGATIONS UNDER CG-RERA
- Promoters must not accept more than 10 % of the property cost as advance before written agreement for sale is signed.
- Promoters must deposit at least 70 % of amounts collected from buyers into a separate escrow account and use it only for land cost and construction of the project.
- Promoter must provide quarterly updates on project progress, status of approvals, etc. Buyers can access these details online.
- Real-estate agents must register and must reference the project’s RERA registration number in any advertisement. Non-compliance attracts heavy penalties.
WHAT HAPPENS IF ONE DOES NOT REGISTER?
- The promoter may face penalties up to 10 % of the project cost and/or imprisonment up to 3 years.
- Sales made without registration may be invalid and pose risk to buyers.
- Buyers may file complaints with CG-RERA against promoter/agent for registration non-compliance.
