Under the Real Estate (Regulation and Development) Act, 2016, a project that must be registered cannot be advertised, marketed or sold until it is. A delayed registration delays the entire launch.
Does the project need registration?
Projects on land exceeding 500 square metres, or with more than eight apartments, must be registered — and some States set lower thresholds. Phased projects need careful treatment.
Documents that slow things down
Title documents, sanctioned plans, encumbrance details and the development agreement with landowners are the usual bottlenecks. Collecting them early prevents a gap between approval and launch.
The 70% account
Seventy per cent of amounts realised from allottees must be held in a separate account and used only for construction and land costs of that project. Systems to track this should be in place before collections begin.
This note is general information, not legal advice. For advice on your own matter, see our Company Law & RERA Compliances practice or contact the firm.
