What is RERA?
The Real Estate (Regulation and Development) Act, 2016 (RERA) is a landmark Indian law that protects homebuyers and brings transparency to the real estate sector. Before RERA, buyers had little recourse against delayed projects, inflated areas, or misleading promises by developers.
Punjab RERA was established on August 10, 2017, with its office headquartered at Sector 18A, Chandigarh. It regulates all real estate projects and agents operating in Punjab.
Who Must Register Under RERA?
Any real estate project with a plot area exceeding 500 square metres OR more than 8 apartments must be registered with RERA before the developer can advertise, market, or sell any unit.
Real estate agents who facilitate buying, selling, or renting must also register. Operating without RERA registration is a criminal offence punishable by imprisonment up to 3 years and/or a fine up to 10% of the project cost.
6 Key Protections for Homebuyers
Carpet Area Pricing
Developers must sell based on carpet area (the actual usable area inside walls), NOT on super built-up area. This eliminates the common practice of inflating areas by 30-40% to charge higher prices. If a builder quotes super area, report them to RERA.
70% Escrow Rule
Developers must deposit 70% of all buyer payments into a dedicated escrow bank account. This money can ONLY be used for construction of that specific project — not for buying new land or funding other projects. This prevents fund diversion, which was the #1 cause of stalled projects before RERA.
On-time Delivery
If a developer fails to deliver possession on the promised date, they must pay the buyer interest at SBI's Prime Lending Rate + 2% for every month of delay. For example, on a Rs 50 lakh property with a 12-month delay, the developer would owe approximately Rs 5-6 lakh in interest.
5-Year Defect Liability
After possession, if any structural defect or quality issue appears within 5 years, the developer must repair it free of cost within 30 days of the buyer's written complaint. This covers cracks, seepage, plumbing failures, electrical faults, and faulty fittings.
Complaint Resolution in 60 Days
RERA must resolve buyer complaints within 60 days. If unsatisfied, buyers can appeal to the RERA Appellate Tribunal. The process is faster and cheaper than civil courts. Filing fee is just Rs 1,000 for individual complaints.
Strict Penalties
Developers face penalties up to 10% of the project cost for violations. Repeated offences can lead to imprisonment up to 3 years. For agents, the penalty is up to 5% of the property cost. RERA has real teeth — unlike older consumer forums.
How to Verify a RERA Project
Visit rera.punjab.gov.in
Click "Search Registered Projects"
Enter the project name OR the RERA registration number (starts with PBRERA-)
Check the registration validity dates — make sure it has not expired
Verify the developer name matches who you are dealing with
NEVER invest in a project that is not listed on the official RERA website
How to File a RERA Complaint
Download the complaint form from rera.punjab.gov.in
Fill in your details, the project details, and nature of complaint
Attach supporting documents (agreement, receipts, communications)
Pay the filing fee of Rs 1,000 (for individual) or Rs 5,000 (for association)
Submit online or in person at the RERA office in Chandigarh
RERA will schedule hearings and aims to resolve within 60 days
If unsatisfied with the order, appeal to the Appellate Tribunal within 60 days
Punjab RERA Statistics (Feb 2026)
Types of RERA Registration
| Code | Type | Description |
|---|---|---|
| PR | Residential | Housing projects — apartments, villas, plotted developments |
| PC | Commercial | Office spaces, shops, malls, commercial complexes |
| PM | Mixed Use | Combined residential and commercial in one project |
| PI | Industrial | Industrial plots, warehouses, factory spaces |
Important Things to Know
RERA applies to ALL ongoing projects that had not received a completion certificate as of May 1, 2017 — even if they started construction before RERA.
Developers cannot change the project plan (layout, specifications, amenities) without consent of 2/3rd of the buyers.
All project details — approvals, layout plan, completion timeline, builder's track record — must be uploaded on the RERA website.
Brokers/agents must display their RERA registration number in all advertisements.
RERA orders are enforceable like a civil court decree — non-compliance is contempt.
Always verify RERA registration before investing. Visit rera.punjab.gov.in