Guide for Registration of Real Estate Projects with RERA

CA Nitin Goyal, CA Aniket Goel

Comprehensive Guide for Registration of Real Estate Projects with Chhattisgarh Real Estate Regulatory Authority (CG-RERA)

1. Registration of Real Estate Projects with Real Estate Regulatory Authority (RERA)

a) When Registration is required with RERA?

• When the promoter intends to
• advertise, market, book, sell or offer for sale, or invite persons to purchase in any manner
• any plot, apartment or building in any real estate project
• in any planning area

b) What is the Requirement of Registration for Ongoing Projects?

• projects that are ongoing on the date of commencement of RERA Act,
• for which the completion certificate has not been issued
• the promoter shall make an application to the Authority for registration of the said project within a period of 3 months from the date of commencement of this Act.
• In Chhattisgarh, the date of Commencement of RERA Act is notified as 1^st May 2017, hence the projects that are ongoing as on 1st May 2017 and for which the completion certificate has not been issued as on that date, is required to be registered with RERA. (Circular No. 3 dated 28.03.2018)
• The due date for registration of these ongoing projects in Chhattisgarh has been notified as 31^st May 2018. Hence all the ongoing projects, for which no completion certificate has been received as on 1st May 2017 are required to be registered with RERA by 31^st May 2018. (Circular No. 3 dated 28.03.2018)
• Here it may be noted that all those ongoing projects for which Works Completion Certificate has not been obtained, even the apartments has been alloted to allottees and they are using the apartments, are required to be registered with RERA.

c) When registration of the real estate project is not required under RERA?

• where the area of land proposed to be developed does not exceed 500 square meters, or
• the number of apartments proposed to be developed under all phases does not exceed 8 apartments
• where the promoter has received completion certificate prior to commencement of this Act
• Where the project is for the purpose of renovation or repair or re-development which does not involve marketing, advertising selling or new allotment of any apartment, plot or building.

d) Requirement of registration under RERA in case of Phased Development of a Project:

• where the real estate project is to be developed in phases,
• every such phase shall be considered a stand-alone real estate project, and
• the promoter shall obtain registration under this Act for each phase separately.

2. Definition of Real Estate Project under RERA

“Real estate project” means:

• development of a building or a building consisting of apartments, or
• converting an existing building or a part thereof into apartments, or
• development of land into plots or apartment

for the purpose of selling all or some of the said apartments or plots or building, as the case may be and includes

• the common areas,
• the development works,
• all improvements and structures thereon, and
• all easement, rights and appurtenances belonging thereto

3. Application for registration of real estate projects (In Form- A in triplicate)

Time-Line for obtaining registration:

Every promoter shall make an application to the Authority for registration of the real estate project in such form, manner, within such time and accompanied by such fee as may be specified by the regulations made by the Authority

Documents required for obtaining registration:

a) a brief details of the enterprise:

• its name, registered address
• type of enterprise (proprietorship, societies, partnership, companies, competent authority),
• particulars of registration
• the names and photographs of the promoter;

b) a brief detail of the projects launched by the promoter in the past five years: (Annexure-9)

• whether already completed or being developed
• the current status of the said projects
• any delay in its completion
• details of type of land and payments pending
• details of cases pending;

c) an authenticated copy of the approvals and commencement certificate from the competent authority;

d) the sanctioned plan, layout plan and specifications of the proposed project;

e) the plan of development works to be executed;

f) the proposed facilities to be provided in the proposed project including fire fighting facilities, drinking water facilities, emergency evacuation services, use of renewable energy; (Annexure-12)

g) proforma of the allotment letter, agreement for sale, and the conveyance deed proposed to be signed with the allottees (Annexure-15)

h) Brief details of the current project (Annexure-11):

a. the location details of the project, with clear demarcation of land dedicated for the project along with its boundaries including the latitude and longitude of the end points of the project

b. the number, type and the carpet area of apartments for sale in the project

c. the number and areas of garage for sale in the project

i) the names and addresses of the real estate agents, if any, for the proposed project

j) the names and addresses of the contractors, architect, structural engineer, if any and other persons concerned with the development of the proposed project (Annexure-10)

k) a declaration, supported by an affidavit stating (In Form- B in Rs. 100 Notarized Stamp Paper)

• that the promoter has a legal title to the land on which the development is proposed
• that the land is free from all encumbrances, or as the case may be details of the encumbrances on such land
• the time period within which the promoter undertakes to complete the project
• that 70% of the amounts realised for the real estate project from the allottees, shall be deposited in a separate account to be maintained in a scheduled bank to cover the cost of construction and the land cost and shall be used only for that purpose
• that the promoter shall not discriminate against any allottee at the time of allotment of any apartment, plot, building, as the case may be.

Additional documents required for obtaining registration in the Chhattisgarh State as per Chhattisgarh Real Estate (Regulation and Development) Rules, 2017:

a) audited balance sheet of the promoter for the preceding financial year

b) income tax returns of the promoter for 3 preceding financial years

c) the number of open parking areas available in the said real estate project

d) copy of the legal title deed reflecting the title of the promoter to the land on which development is proposed to be developed

e) where the promoter is not the owner of the land on which development is proposed, details of the consent of the owner of the land along with a copy of the collaboration agreement, development agreement, joint development agreement or any other agreement, as the case may be, entered into between the promoter and such owner and copies of title and other documents reflecting the title of such owner on the land proposed to be developed

f) Chartered Accountant’s Certificate (in case of new project): To certify that no bookings, or no sums have been received towards the sale or booking of any apartments, plots or buildings, in respect of the proposed real estate project by the promoter (Annexure-1)

g) Chartered Accountant’s Certificate (in case of On-going project): To Certify the Estimated balance cost to complete the Real Estate Project , Balance receivables amount from sold plots/apartments/buildings , balance unsold area , estimated amount of sales proceeds in respect of unsold plots/apartments/buildings (Annexure-2)

h) Project Architect’s Certificate: To Certify the Percentage of Completion of Construction/ Development work (Annexure-3)

i) Engineer’s Certificate: To Certify the Cost Incurred/ Estimated Cost to Incurred for Development of the project (Annexure-4)

j) Chartered Accountant’s Certificate: To Certify the Cost of the Land, construction/ development cost, and the cost of the project (Annexure-5)

k) Brief Details of the Promoter along with passport size photographs (Annexure-13)

l) Title Search Report & Legal Scrutiny Report by the Advocate (Annexure-14)

4. Registration Fee for registration of Project under RERA

5. Grant of Registration under RERA (In Form-C)

a) RERA shall within a period of 30 days from the date of receipt of application

• Either grant the registration and provide a registration number, or
• Reject the application for reasons to be recorded in writing, if application does not conform to the provisions of law, after giving an opportunity of being heard. (In Form-D)

b) If the Authority fails to grant the registration or reject the application within 30 days, the project shall be deemed to have been registered.

6. Validity of Registration under RERA & Extension of its validity

1. The registration once granted shall be valid for the time period declared by the promoter for completion of project in his application form.
2. The registration once granted may be extended by the RERA on an application made by the promoter if the project is delayed due to war, flood, drought, fire, cyclone, earthquake or any other calamity caused by nature. In this case, the promoter is not liable to pay any fee for extension of registration.
3. RERA may in reasonable circumstances, without default on the part of the promoter, based on the facts of each case, extend the registration granted to a project for such time as it considers necessary, which shall, in aggregate, not exceed a period of one year:

7. Punishment for Non Registration of Real Estate Projects under RERA

a. In case of non registration of a real estate project, promoter is liable to a penalty which may extend up to 10% of the estimated cost of the real estate project as determined by the RERA.

b. In case, promoter does not comply with the orders, decisions or directions issued by RERA, or does not get his project registered even after levying of penalty as per clause (a), then the promoter is punishable with imprisonment for a term which may extend up to 3 years or with fine which may extend up to a further 10% of the estimated cost of the real estate project, or with both.

8. Punishment for providing false information at the time of registration under RERA

If any promoter provides false information at the time of registration, he is liable to a penalty which may extend up to 5% of the estimated cost of the real estate project, as determined by the RERA.

(Disclaimer: This write up is based on the understanding and interpretation of authors and the same is not intended to be a professional advice.)

[The authors are Chartered Accountants and can also be reached at [email protected] and [email protected]]

Checkout the process How to register in RERA