The Ministry of Housing and Urban Affairs has proposed a comprehensive set of amendments to the Real Estate (Regulation and Development) Act, 2016 — popularly known as RERA. These amendments are expected to come into effect by Q1 2025 and will significantly alter the developer-buyer relationship.
Key Amendments Proposed
1. Mandatory Project Insurance: All new residential projects must carry comprehensive project insurance covering construction risk, structural defects, and title disputes for the first 5 years.
2. Stricter Possession Timelines: Developers must now provide a quarter-by-quarter construction progress report on the RERA portal, backed by an escrow arrangement tied to milestone completion.
3. Increased Penalties for Delays: The interest liability for delay in possession has been revised from 10.25% to 13% p.a., compounded monthly. Developers with repeat delays will face license suspension.
4. Dispute Resolution Speed: All RERA disputes must now be resolved within 120 days (down from 180 days) with mandatory online dispute resolution for claims under ₹5 lakh.
5. NRI Buyer Protections: Special provisions for NRI buyers including apostille-approved documentation, video KYC, and digital registrations through authorized embassies.
What This Means for Buyers
These amendments collectively create a significantly safer environment for property buyers. The mandatory escrow and insurance requirements will filter out financially weak developers and encourage only well-capitalized, serious players.
For investors considering off-plan (under-construction) purchases, the new RERA framework reduces execution risk considerably. We recommend all buyers to verify RERA registration and check the UP-RERA or Haryana RERA portal before booking.
