What is RERA and Why Should You Care?
Before RERA (2016), buying property in Mumbai was a gamble. Developers could sell unregistered projects, divert your money to other sites, quote inflated areas, and delay possession by years with zero consequences.
RERA changed all of that. The Real Estate (Regulation and Development) Act gives Mumbai homebuyers enforceable legal rights. MahaRERA — Maharashtra's implementation — is one of the most active state authorities in India.
How to Verify RERA Registration (2 Minutes)
- Go to maharera.maharashtra.gov.in
- Click "Search Project"
- Enter the project name or RERA number (format:
P51800XXXXX) - The listing shows everything: approved plans, carpet areas, expected completion, promoter details, financial statements
What to Look For on the RERA Page
| Field | What It Tells You |
|---|---|
| Proposed completion date | The legal deadline. Delays after this trigger compensation |
| Registered carpet area | The ONLY area that matters. Ignore super built-up quotes |
| % of construction completed | Updated quarterly by the developer. Cross-reference with a site visit |
| Litigations | Any legal disputes involving the project. Red flag if many |
| Promoter's other projects | Check delivery track record across all their projects |
Carpet Area — The Only Number That Matters
RERA mandates that all sales are based on carpet area — the actual usable space within the walls of your flat. This is what you should evaluate:
- Carpet area — what you can use. The legal measurement under RERA
- Built-up area — carpet + wall thickness. Typically 15-20% more. Ignore this
- Super built-up area — includes common areas (lobby, staircase, amenities). Can be 30-50% more than carpet. Developers love quoting this. Ignore it
The 70% Escrow Rule
This is RERA's most powerful protection. Developers must deposit 70% of all buyer payments into a separate escrow account.
- Funds can only be withdrawn proportional to construction completed
- Withdrawal requires certification by both an engineer and a chartered accountant
- This prevents the pre-RERA practice of using your money to buy land for another project
What Happens When Your Developer Delays
If the developer misses the RERA-registered completion date, you have two options:
Option A: Continue waiting
Developer pays you interest at SBI MCLR + 2% (currently ~10.5% per annum) on your total payment until possession is delivered.
Option B: Full refund
Withdraw from the project entirely. Developer refunds 100% of your payment + interest at the same SBI MCLR + 2% rate.
How to File a MahaRERA Complaint
- Go to maharera.maharashtra.gov.in → "File Complaint"
- Pay ₹5,000 filing fee (₹1,000 for groups)
- Upload: sale agreement, payment receipts, correspondence with developer
- MahaRERA schedules a hearing within 60 days
- Orders are legally binding — enforceable like a court decree
You do not need a lawyer. The process is designed for individual homebuyers. Many buyers represent themselves successfully.
