Construction & Real Estate

RERA Registration for Builders & Developers — The Complete Process

RERA project registration step-by-step for builders and developers. Eligibility thresholds, application documents, Gujarat RERA process, ongoing compliance and penalty for delays.

CA Mitul Pujara, FCAUpdated 7 June 202611 min read

The Real Estate (Regulation and Development) Act 2016 — RERA — transformed how residential and commercial real estate is sold in India. For a builder or developer in Ahmedabad or anywhere in Gujarat, RERA registration is the gateway between 'we own land' and 'we can legally market and sell units'. This guide walks through who must register, when, the documents required, the Gujarat RERA process specifically, and the ongoing compliance most builders underestimate.

What RERA actually does

  • Mandatory project registration before any marketing or sale activity for projects above threshold size.
  • Separate escrow / project bank account holding 70% of buyer payments — released only against construction milestones certified by Architect / Engineer / CA.
  • Time-bound project completion enforced via published timeline; delays attract interest payable to buyers.
  • Quarterly progress reports published on the State RERA portal — buyers can verify in real time.
  • Promoter cannot alter sanctioned plan without 2/3 majority of allottee consent post-RERA registration.
  • Standardised carpet area definition — eliminates super-built-up area dispute.

Who must register under RERA

Under Section 3 of the Act, every promoter must register the real estate project with the State Real Estate Regulatory Authority before advertising, marketing, booking, selling or offering for sale any plot, apartment or building. Promoter includes:

  • Individual or firm developing land into plots for sale.
  • Builder constructing on its own land or on JDA land.
  • Cooperative housing society or association of allottees redeveloping property.
  • Government corporations and local authorities developing real estate.

Project size thresholds

RERA registration is NOT required for very small projects. Threshold rules (Section 3(2)):

  • Plot area ≤ 500 sqm OR apartment count ≤ 8 — no registration required.
  • Renovation / repair / re-development without new marketing — registration not required.
  • Where the project is divided into phases — each phase that crosses the threshold needs separate registration.

Documents required

  • Promoter PAN, Aadhaar, photo, address proof — for proprietor / partner / director.
  • Entity proof — Certificate of Incorporation, MOA + AOA, Partnership Deed, LLP Agreement as applicable.
  • Land title documents — sale deed, lease deed, JDA, allotment letter from Government.
  • Encumbrance certificate from sub-registrar.
  • Approved layout plan and sanctioned building plan from the local development authority.
  • Commencement Certificate (CC) from the local body.
  • Engineering details — list of professionals (Architect, Structural Engineer, Contractor) with their RERA registration where applicable.
  • Brokerage / agent details if engaged.
  • Proforma agreement to sell that will be used with buyers.
  • Bank account proof for the project (separate from promoter operating account).
  • Project completion certificate / occupancy certificate timeline.

Gujarat RERA specifics

Gujarat constituted the Gujarat Real Estate Regulatory Authority (GUJRERA) under Section 20 of the central Act. Headquarters in Gandhinagar. Project registration is fully online at gujrera.gujarat.gov.in. Key Gujarat-specific points:

  • Registration fee — based on project size, generally ₹5-10 per square metre of total project area. Detailed fee structure on the portal.
  • Annual renewal fee.
  • Phased projects allowed but the State Authority verifies phase-distinction substance.
  • Mandatory quarterly project progress reports — physical work completion percentage uploaded.
  • Architect / Engineer / CA certificates for each milestone-based release from the project bank account.
  • Gujarat RERA tribunal hears disputes between buyers and promoters — separate from civil courts.

Step-by-step application

  1. Constitute the promoter entity properly — most use a Pvt Ltd or LLP. Run-of-the-mill partnership firms work for smaller projects but lack the limited liability advantage.
  2. Get land title clear — encumbrance certificate, current revenue records, mutation entries up to date.
  3. Obtain approved layout plan + sanctioned building plan from the local development authority (AUDA in Ahmedabad).
  4. Obtain Commencement Certificate (CC).
  5. Set up a separate project bank account — typically in a nationalised bank or a bank with RERA escrow experience. 70% of buyer payments must flow into this account.
  6. Engage RERA-registered professionals — Architect, Structural Engineer, MEP Engineer, Contractor.
  7. Prepare project disclosures — timeline, amenities, common areas, parking allocation, sanctioned plan layout — for buyer consumption.
  8. File RERA registration online — upload documents, pay the registration fee.
  9. Track status — GUJRERA acknowledges within 30 days, can issue queries.
  10. Respond to clarifications within stipulated time.
  11. Receive registration certificate with a unique RERA Project Number. This number must appear on all advertising and the proforma agreement to sell.

Post-registration compliance

  • Quarterly progress reports uploaded on the RERA portal — physical work completion percentage and financial position.
  • Statement of accounts of the project bank account — audited annually by a CA, with the CA certificate uploaded.
  • Disclosure of any material change in project scope to allottees and the State Authority.
  • 70% bank account rule — buyer payments must flow to the project account; withdrawals only against milestone-based architect / engineer certificates plus CA certificate.
  • Timely possession — delays beyond the published completion date attract interest payable to buyers at the prescribed rate (typically SBI prime lending rate + 2%).
  • Mandatory display of RERA Project Number in all advertisements, brochures and the proforma agreement.

Real estate agent registration

Section 9 requires every real estate agent dealing in RERA-registered projects to themselves register with the State Authority. Agent registration is separate from project registration:

  • Individual agents — PAN, Aadhaar, photo, address proof.
  • Firm / company — entity documents, list of agents working under the firm.
  • Annual renewal fee.
  • Mandatory display of RERA Agent Registration Number in all communications and advertisements.
  • Maintenance of records — purchasers handled, brokerage received.
  • Agents working with unregistered projects (or projects below threshold but not formally exempted) themselves attract liability.

Penalties for non-compliance

ViolationPenalty
Selling project without RERA registrationUp to 10% of estimated project cost + imprisonment up to 3 years
Continued sale after noticeDaily penalty up to project cost + further imprisonment
False or incorrect information in registrationUp to 5% of estimated project cost
Non-display of RERA Project Number in advertisingUp to 5% of estimated project cost
Breach of project bank account rulesUp to 5% of estimated project cost
Delay beyond declared completion dateInterest at prescribed rate payable to buyers, plus damages
Agent operating without registration₹10,000 per day, capped at 5% of cost of project handled

Common issues we see

  • Builders starting marketing 'soft launch' style before RERA registration. The Act treats this as a violation regardless of how informal the booking is.
  • Mixed-use projects where promoters claim only residential is RERA-registrable. Commercial space within a residential project triggers RERA the same way.
  • Mismatch between sanctioned plan and actual construction — needs allottee consent to alter post-registration.
  • Project bank account used for promoter operating expenses — strict prohibition.
  • Failure to upload quarterly progress on time — generates a public flag on the State Authority portal visible to buyers.
  • Agent commissions disbursed from buyer payments before they pass the 70% project account rule.

Frequently Asked Questions

Is RERA registration mandatory for all real estate projects in Gujarat?

Yes, subject to the size threshold. Projects with plot area greater than 500 sqm OR more than 8 apartments must be registered with the Gujarat Real Estate Regulatory Authority (GUJRERA) before any marketing, advertising, booking or sale activity.

How long does Gujarat RERA registration take?

GUJRERA must process the application within 30 days of receiving complete documents (Section 5 of the Act). With clarification cycles, end-to-end timelines of 45-90 days are common. Plan accordingly — do not start marketing until the registration certificate is in hand.

What is the project bank account requirement?

70% of the amount collected from buyers for the project must be deposited in a separate scheduled bank account dedicated solely to that project. Withdrawals are permitted only proportionate to the percentage of project completion, certified by an Architect, Engineer AND a Chartered Accountant.

Do I need to register a real estate agent license separately?

Yes. Real estate agents must obtain their own RERA Agent Registration under Section 9 — separate from any project registration. The Agent Registration Number must be quoted in all advertisements, communications and brokerage agreements.

What is the penalty for selling a project without RERA registration?

Under Section 59 of the Act, penalty can be up to 10% of the estimated cost of the project. Continued violation can lead to imprisonment for up to three years and additional daily penalties. For a ₹50 crore project, the exposure is ₹5 crore plus prosecution risk.

Can a single project be registered in phases?

Yes, where the project genuinely consists of distinct phases (separate land parcels, separate infrastructure, separate timelines). Each phase that crosses the threshold needs separate registration. The State Authority verifies substance — splitting a single project into paper-phases to avoid thresholds is not permitted.

Need RERA registration support for your project?

Pujara & Co. handles end-to-end RERA registration, quarterly progress filings, audited statement of accounts for the project bank account, and CA certificates for milestone-based withdrawals. Engagements from ₹49,999 for project registration.

Learn more

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