The Critical Importance of Hiring Experienced Professionals for RERA Compliances
Author: E. Suhail Ahmed – Partner Trialbase Advocates, Partner Smriti Legal LLP (Advocates), Principal Legal Consultant at RERA Consultants LLP.
Introduction:
The Real Estate (Regulation and Development) Act, 2016 (RERA), was enacted to bring transparency, accountability, and efficiency to India’s real estate sector. It imposes stringent compliance requirements on promoters and real estate developers — covering everything from timely project registration, regular updates, and quarterly filings to the submission of detailed certifications by professionals such as Chartered Accountants (CAs), Architects, and Engineers.
While the law is clear, navigating its provisions requires expertise. As the stakes are high in any real estate project, more so for promoters and builders – Errors or oversights in complying with the RERA Act can trigger significantly huge penalties, project delays and damage the brand’s reputation. That is why hiring experienced professionals is not just recommended, but essential.
Why RERA expertise matters to safely comply with the Act.
Accuracy in Financial and Technical Certification
Under RERA Section 4(2)(l)(D) of the Act, promoters are required to deposit 70% of funds collected from allottees in a separate bank account. Withdrawals can be made only after certification by an Engineer, Architect, and CA confirming the percentage of completion matches the funds to be withdrawn. Errors in doing so can be considered as a violation under Section 4 and 7 of the Act.
Mitigating Legal Risk
Mistakes in certifications, even if inadvertent, are liable for penalties under Sections 60 and 61 of the RERA act. Moreover, in the event certificates issued by professionals are erroneous and / or misleading, both the promoters and the professionals will be held liable and disciplinary action will be enforced.
Maintaining Allottee Confidence
Property buyers and allottees are increasingly aware of the RERA act and their rights as a consumer. With various transparency mechanisms, including RTI (Right to Information), they can file application to retrieve copies of certificates submitted to the RERA authority. Any discrepancies reported will lead to complaints, legal battles, and even criminal prosecution.
In a recent case, Allottee’s investigation led to a RERA complaint and a huge relief is being sought by the complainant.
Why experienced professionals matter
- Hands-on knowledge and experience to properly certify stage-wise completion
- Fully aware of the documentary evidence required by authorities
- Provide strategic advice to developers on best practices for fund withdrawal and utilization
Conclusion:
RERA is a powerful legislation designed to protect the interest of homebuyers and restore confidence in the real estate sector. However, the success of a project under RERA hinges largely on the credibility of the documentation submitted and the professionals certifying it.
Experienced professionals are not a cost — they are an investment in legal security, transparency, and trust. Developers must, therefore, treat RERA compliance not as a checkbox exercise, but as a core function of project governance.
Disclaimer:
The information contained in this article is provided for general informational purposes only and does not constitute legal advice. Readers should not act or refrain from acting on the basis of any content included herein without seeking appropriate legal or professional advice on the specific facts and circumstances at issue.
Hi, this is a comment.
To get started with moderating, editing, and deleting comments, please visit the Comments screen in the dashboard.
Commenter avatars come from Gravatar.