State-wise RERA variations: what buyers and developers must know

Introduction : The RERA Framework

The Real Estate (Regulation and Development) Act, 2016 (RERA) makes a significant shift in the regulation of India's real estate sector. Before the act, homebuyers often have to face delayed possession, diversion of project funds, and misleading commitments by developers. To address these concerns, the Act introduced several safeguards which aimed to make the market more transparent and accountable. It standardised the measurement and disclosure of carpet area, restricted promoters from accepting more than 10% of the unit price before executing a registered Agreement for Sale, required 70% of buyers' funds to be deposited in a separate escrow account under Section 4, and imposed a five-year obligation under Section 14(3) to correct structural defects without additional cost.

Although these protections apply all over the country, RERA does not function as a completely uniform regulatory structure. Recognising the different administrative needs of different states, Section 84 authorises the State Government to frame its own Rules on matters such as registration procedures, online portals, interest calculations, prescribed forms, penalties, and appellate mechanisms.

This led to differences in how RERA functions in different states. For example, procedures for project registration, the calculation of interest, or the appellate process may vary in Maharashtra, Uttar Pradesh, Gujarat, and Tamil Nadu. 

The Central RERA Framework

Before seeing how RERA differs across states, it is important to understand its central framework. In reality, the Central Government is responsible for the legislative framework and plays an advisory and coordinating role, while the day-to-day regulation and enforcement of RERA are carried out by the respective State authorities.

The central framework rests on three pillars.

Firstly, the Real Estate (Regulation and Development) Act, 2016, lays down the basic standards that apply across the country. These include the threshold for project registration, the requirement to maintain an escrow account, the promoter's liability for structural defects, parity in interest payable by both promoters and allottees, and the statutory limits on penalties. While states have the flexibility to frame rules for implementing the Act, they cannot weaken or override these substantive protections.

Secondly, Sections 41 and 42 establish the Central Advisory Council (CAC), which is chaired by the Union Minister for Housing and Urban Affairs and also includes representatives from key ministries, NITI Aayog, the National Housing Bank, State Governments, and State RERA Authorities. 

The role of the council is largely advisory here. It advises the Central Government on formulating policy, reviews the implementation of RERA, and promotes consumer protection. However, it does not have any regulatory power. It remains with the respective State RERA Authorities.

Lastly, the third pillar is the Unified RERA Portal (rera.mohua.gov.in), launched by the Ministry of Housing and Urban Affairs during the fifth meeting of the Central Advisory Council. It is developed in collaboration with the All-India Forum of RERA and brings together project and real estate agent information from 35 States and Union Territories on a single searchable platform. However, one must note that the Unified RERA Portal is not a central regulatory authority. Its purpose is to bring together information available on individual State RERA portals through a single platform. The portal does not modify state-specific Rules or create uniform procedures for project registration, interest calculations, or enforcement. Those matters are governed by the respective State RERA Authorities.

Layer	What it actually does	What it does not
RERA Act, 2016	Establishes the national statutory framework, including registration thresholds, escrow requirements, structural defect liability, interest parity, and penalty ceilings	Does not prescribe operational procedures, which are delegated to the states under Section 84.
Central Advisory Council (Sections 41–42)	Advises the Central Government on policy, monitors implementation, and represents stakeholder interests.	Does not register projects, adjudicate disputes, or impose penalties.
Unified RERA Portal	Consolidates project and agent information from state portals into a single national database	Does not modify or override any state's Rules, procedures, or interest calculations.
State RERA Authorities and Appellate Tribunals	Register projects, decide complaints, calculate interest, enforce penalties, and hear appeals.	Exercise powers only within the framework of their respective state Rules.

There is no single authority that operates as a "Central RERA." While Parliament has laid down the statutory framework and the Central Government provides policy guidance and a common information platform, the administration and function of the Act is left to the respective State RERA Authorities. They are responsible for functions such as project registration, dispute resolution, the calculation of interest, the imposition of penalties, and the appellate process.

This distinction is important because the procedural requirements under RERA are ultimately shaped by the Rules notified by the state where the project is situated. The differences discussed in the following sections stem from this state-level rule-making power rather than from the Act itself.

How Different States Implement Registration Thresholds, Forms, and Timelines

Under the Act, a project that covers more than 500 square metres of land or comprises more than eight apartments must be registered before it can be advertised, marketed, or offered for sale. While this registration requirement is uniform, the process of obtaining registration is not. Every state has framed its own Rules governing application procedures, documentation, timelines, and compliance mechanisms, resulting in differences in how the registration framework operates in practice.

State / Authority	Registration Threshold	Notable Feature
Maharashtra (MahaRERA)	Strict adherence to the 500 sq. m./8-unit threshold	Advanced digital portal with mandatory quarterly project updates
Karnataka (K-RERA	Same statutory threshold	Exemptions for certain slum rehabilitation and redevelopment projects
Rajasthan / Madhya Pradesh	Presently, follow the central threshold.	Discussions are underway to reduce the threshold and bring smaller projects within RERA's ambit.
Uttar Pradesh (UP RERA)	Central threshold	Regional benches, including Greater Noida and Lucknow, facilitate quicker dispute resolution.
Gujarat (GRERA)	Central threshold	Targets the disposal of buyer complaints within approximately 60 days
Tamil Nadu (TNRERA)	Central threshold	Encourages negotiation before disputes proceed to formal adjudication

Variation in Different States Is Not Only about the Registration Process

Each state has designed its own administrative procedures, digital platforms, and compliance mechanisms, resulting in differences in the practical implementation of RERA. This means that developers and purchasers will be required to follow different procedures and comply with varying expectations, depending on the state where the project is located.

For example, MahaRERA is one of the leading RERA bodies in the country, having its own online platform, which helps users to access project information, monitor the progress of projects, and see quarterly updates that promoters are supposed to file. Many other states have also created their own online platforms for project registration and complaint submission. Nevertheless, the degree of digitalisation and the quality of such platforms vary: some platforms provide less information and update their data more slowly. Therefore, the process of registration can take varying times in different states.

For developers who operate in multiple states, complying with RERA involves more than meeting the statutory registration threshold. Each State RERA has its own application forms, documentation requirements, reporting obligations, and online systems. A compliance process that works in one state may not satisfy the requirements of another, making it essential to account for state-specific Rules when planning and managing projects.

Most decent developments in Rajasthan and Madhya Pradesh show that State RERA frameworks continue to evolve. Both states have explored reducing the registration threshold below 500 square metres so that smaller real estate projects could also fall within RERA's regulatory ambit.  Although these changes have not yet been implemented, developers planning smaller projects should confirm the current legal position with the relevant State RERA Authority rather than assume that the existing exemptions will continue to apply.

Variation in Interest Rates for Delayed Possession

One of the key goals of the Act is that of ensuring impartiality between the promoter and home buyer, especially when either one of them breaches their obligation of payment. This aspect is embedded in Section 2(za)(ii), which stipulates that the rate of interest to be charged by the promoter for delayed possession shall be equal to the rate of interest charged by an allottee for delayed instalments.

It is suggested that the Central Government calculate interest in accordance with the Marginal Cost of Lending Rate of the State Bank of India plus 2%. Nevertheless, things are not always so straightforward. There are several states that have adopted an alternative methodology for the calculation of the rate of interest in question or apply a different benchmark depending on their Rules.

State / Approach	Method of Calculating Delay Interest
Maharashtra, Gujarat, Madhya Pradesh, Punjab, Bihar, West Bengal, Odisha	SBI MCLR + 2%, broadly following the central recommendation.
Tamil Nadu	SBI MCLR + 2%, calculated under its own procedural framework
Haryana	Uses SBI's highest marginal cost of lending rate instead of the standard MCLR
Uttar Pradesh	Historically, it lacked a uniform statutory formula; adjudicating authorities have awarded interest between 12–15% depending on the facts of each case

Because the MCLR changes in line with the RBI's monetary policy, the applicable rate of interest under RERA can change over time. Therefore, developers and homebuyers should check the latest rate published by the relevant State RERA Authority before calculating any interest liability. Relying on rates used in previous transactions or information from unofficial sources may lead to incorrect calculations.

Variation in Penalties, Enforcement, and the Appellate Process

Although RERA prescribes uniform penalty ceilings that may be imposed for non-compliance, the way those powers are enforced varies across states. For example, Section 59 authorises a penalty of up to 10% of the estimated project cost for failing to register a project and also provides for imprisonment where the default continues. Similarly, Section 61 permits a penalty of up to 5% of the project cost for violations of the Act, the Rules, or the Regulations.

While the statutory limits are the same throughout India, State RERA Authorities differ in how they approach enforcement. Factors such as the frequency of inspections, the willingness to initiate proceedings, and the severity of penalties imposed can vary from one to another. The following table shows how different states approach things in different ways.

State Authority	Enforcement Approach
MahaRERA (Maharashtra)	One of the country’s most proactive regulators, known for imposing substantial penalties and closely monitoring ongoing projects.
HRERA (Haryana)	Frequently, it supplements monetary penalties with developer blacklisting, preventing repeat offenders from launching new projects.
Bihar RERA	Places particular emphasis on misleading advertisements and misrepresentation of project approvals.

The appellate framework also shows this state variation that influences its functioning.  A party that is aggrieved by an order of the Regulatory Authority or the Adjudicating Officer may appeal before the Real Estate Appellate Tribunal (REAT) under Section 44. However, the proviso of Section 43(5) required the promoter to deposit a prescribed portion of the disputed amount or penalty before an appeal could be entertained. This requirement prevents developers from filing appeals merely to delay compliance.

The Supreme Court in Newtech Promoters and Developers Pvt. Ltd. v. State of Uttar Pradesh & Ors., 2021 SCC OnLine SC 1044, examined the validity of this pre-deposit requirement, where it was upheld while also clarifying the manner in which the pre-deposit must be computed. Even so, the judgment did not create a uniform appellate system across the country. Consequently, the percentage required to be deposited, as well as the efficiency and disposal timelines of Appellate Tribunals, continue to vary across states. As a result, the cost and duration of pursuing an appeal often depend as much on the Rules and administrative practices of the state in which the project is registered as on the legal merits of the dispute.

Implications for Pan-India Developers

Developers who function in multiple states, RERA compliance extends beyond just the central Act. Variations in State Rules create legal, operational, financial, and reputational risks, which make a uniform compliance strategy impractical.

West Bengal's attempt to replace RERA with the West Bengal Housing Industry Regulation Act, 2017 (WB-HIRA). Although WB-HIRA mainly mirrored RERA, it differed on several issues, such as parking spaces, compounding of offences, jurisdiction, and force majeure. In Forum for People's Collective Efforts (FPCE) v. State of West Bengal (2021), the Supreme Court struck down WB-HIRA as unconstitutional under Article 254 and held that Parliament had already occupied the field through RERA. 

Therefore, for developers, compliance not only requires monitoring the applicable State Rules but also judicial developments affecting their validity.

State-Specific Compliance Challenges

While the validity of the registration process in different states is uniform, the procedural aspect of RERA can greatly impact the management of projects. Reporting obligations, registration procedures, marketing disclosures, escrow administration, enforcement practices, and appellate mechanisms all vary from one jurisdiction to another, which means developers often have to follow different procedures in different jurisdictions.

For example, different states prescribe different Quarterly Progress Report (QPR) formats and filing timelines. It makes the single compliance calendar difficult for developers operating nationwide. 

Similarly though the 70% escrow requirement under Section 4 is uniform, certification procedures and enforcement practices differ across states. Additionally, marketing documentation will also require adjustments in light of specific state requirements for disclosure, especially those in states where there is strict monitoring of advertisements that mislead. State Authorities now use diverse regulatory tools to achieve their objectives. While MahaRERA rates projects in terms of compliance and viability of projects, HRERA has resorted to blacklisting and a defaulter list. It is clear then that apart from monetary fines, the non-compliance also has reputational ramifications.

Variation across different states also impacts the business decisions of developers. Variation in calculations of delay interest, appeal procedures and efficiency of Tribunals can affect business planning, litigation strategy and dispute resolution. Just as in the case of buying out projects and joint ventures, developers should perform state-specific RERA due diligence and not just the centralised RERA compliance process.

Finally, although the establishment of the Unified RERA Portal has facilitated information on registration, it has not diminished the importance of state-based compliance. Therefore, developers with operations in different Indian states should consider complementing the centrally based compliance process with jurisdiction-specific procedures.

While the validity of the registration process in different states is uniform, the procedural aspect of RERA can greatly impact the management of projects.

Compliance Checklist: Key Considerations for Buyers and Developers

The following checklist highlights the principal state-specific issues that should be verified before launching, acquiring, or investing in a project.

State / Authority	Registration & Escrow	Reporting & Enforcement	Interest / Penalty Exposure	Appeals
Maharashtra (MahaRERA)	Strict registration threshold; escrow linked to certified progress	Tight QPR deadlines and public project grading	MCLR + 2%; proactive enforcement and recovery proceedings	Well-established Tribunal
Uttar Pradesh (UP RERA)	Central threshold	High complaint volume; regional benches	Historically variable interest awards	Appeals are often affected by the case backlog
Haryana (HRERA)	Escrow compliance is closely monitored	Blacklisting, bank-account freezing, public defaulter lists	SBI's highest lending rate benchmark	Debarment from new projects is possible
Karnataka (K-RERA)	Central threshold with redevelopment exemptions	Occupancy Certificate compliance is closely monitored	MCLR + 2%	Functioning Tribunal
Tamil Nadu (TNRERA)	Central threshold	Encourages pre-litigation settlement	MCLR + 2% (state methodology)	Separate procedural requirements
Gujarat (GRERA)	Central threshold	Faster complaint resolution	MCLR + 2%	Standard appellate process
West Bengal (WBRERA)	Central threshold after WB-HIRA decision	Verify the latest Rules in light of legislative history	MCLR + 2%	Appeals before the West Bengal Appellate Tribunal
Rajasthan / Madhya Pradesh	Monitor proposed threshold changes	Follow evolving Rules	MCLR + 2%	Verify current Tribunal practice

Practical Checklist for Developers

Before launching or expanding into a new state, developers should:

• Verify the latest notified RERA Rules and subsequent amendments;

• determine whether any part of the state's regulatory framework is under constitutional challenge;

• confirm the criteria of applicable registration procedures, forms, and Quarterly Progress Report (QPR).

• understand the procedure of escrow certification and withdrawal

• identify the applicable delay-interest formula and periodically review changes linked to SBI's benchmark rates;

• examine the grading systems, blacklisting mechanisms, and other risks

• examine the functioning of the State Appellate Tribunal, including pre-deposit requirements; and

• tailor advertising and disclosure practices to state-specific regulatory expectations instead of adopting a uniform national approach.

Practical Checklist for Buyers

Before booking a property, buyers should:

• verify that the project is registered on the State RERA portal or the Unified RERA Portal

• confirm the applicable delay interest formula

• ensure that the agreement discloses the correct carpet area.

• Review project grades or defaulter lists wherever available.

• understand the dispute resolution mechanism applicable in that state and

• retain all agreements, payment receipts, and communications, as documentary evidence.

Conclusion

Thus, despite the fact that RERA creates a common legal basis for the regulation of India's real estate sector, its practical realisation differs substantially. Parliament sets out all the substantive rights and obligations, the Central Government coordinates the policy and provides for a unified information platform, but the actual regulation of projects is done by State RERA Authorities in accordance with their Rules. 

For homebuyers, understanding RERA involves more than understanding the central Act. The Rules framed by the state in which the project is located can also influence how those statutory rights are exercised and enforced. Developers, mainly those who operate in different states, cannot rely on a single compliance model because each state has its own procedural requirements and regulatory practices. It requires a state-specific strategy supported by local legal expertise, continuous regulatory monitoring, and jurisdiction-specific risk management. That is the practical reality of RERA today - A uniform statute implemented through diverse state regulatory systems. 

Author: Anmol Pandey in case of any queries please contact/write back to us via email to content@khuranaandkhurana.com or at  Khurana & Khurana, Advocates and IP Attorney.

Reference

1. Real Estate (Regulation and Development) Act, 2016 (Act No. 16 of 2016)

2. Real Estate Regulation & Development Act, 2016. https://labourlawadvisor.in/blog/rera-the-real-estate-regulation-development-act-2016/

3. Newtech Promoters and Developers Pvt. Ltd. v. State of UP & Ors., 2021 SCC OnLine SC 1044; (2021) INSC 716

4. Forum for People's Collective Efforts (FPCE) & Anr. v. State of West Bengal & Anr., Writ Petition (Civil) No. 116 of 2019, decided 4 May 2021, Supreme Court of India

5. Ministry of Housing and Urban Affairs, Press Information Bureau release, "Union Minister Shri Manohar Lal Launches Unified RERA Portal at 5th Meeting of Central Advisory Council" (4 September 2025).

6. Maharashtra Real Estate (Regulation and Development) Rules, 2017; MahaRERA circulars on the Financial Quarter-Based Project Progress Reporting System and the Project Grading System (MahaCRITI platform, effective from 2024).

7. Uttar Pradesh Real Estate (Regulation and Development) Rules, 2016.

8. iPleaders, "Quarterly Compliances under RERA" — on state-wise variation in Quarterly Progress Report formats and requirements.

9. Lloyd Law College, "RERA Act Details: Key Features, Rules & Compliance" — on Section 13(1) advance payment cap and Section 14(3) defect liability.

10. Legal Eye, "State-wise Differences in RERA Laws Across India" — on divergent state interest-rate formulas, including Haryana's highest-lending-rate benchmark.

11. Importance of RERA in Real Estate Transactions. http://www.windsorshelters.com/blog/blog/understanding-the-importance-of-rera-in-real-estate-transactions

12. Real Estate Market in India - Interlegal International Legal Network - Interlegal. https://www.interlegal.net/real-estate-market-in-india/