The Real Estate (Regulation and Development) Act, 2016
("RERA"), has finally given India's
real estate sector its first Regulator from May, 2016. The RERA
seeks to bring forth transparency in the real estate sector and
protect the interests of the buyers while imposing severe penalties
on errant builders. According to the RERA, each State and Union
Territory will have its own regulator and a set of rules to govern
the functioning of the Regulator. There has been an inevitable
discussion of its benefits and handicaps. One of the major areas of
concern for the promoters is Section 4(2)(l)(D) of the RERA as it
has a bearing on the financial outlay of the projects.
According to the above mentioned Section 4(2)(l)(D) of the RERA,
a promoter is required to enclose, along with the application for
registration of real estate projects, a declaration supported by an
affidavit, signed by the promoter or any person authorized by the
promoter, stating that 70% (seventy percent) of
