Section 8 of RERA: Obligation of Authority consequent upon the lapse of or on the revocation of registration.



Status as on- 13/04/2023


  • The Real Estate (Regulation and Development) Act, 2016, often known as RERA, was passed to safeguard homebuyers’ interests and advance accountability and openness in the real estate industry. Section 8 of RERA, which addresses the obligation of authority following the expiration or cancellation of registration, is one of its key sections.
  • According to Section 8 of RERA, the real estate regulatory authority (RERA) must take the necessary steps to facilitate the refund of the amounts paid by the allottees along with interest if the registration of a real estate project is revoked or has expired due to the promoter’s failure to complete the project or for any other reason.
  • This clause’s goal is to protect homebuyers from being abandoned if the promoter fails to finish the project or has their registration revoked. The RERA authority must intervene in this situation and take the appropriate steps to safeguard the interests of the homebuyers.
  • The RERA authority has the authority to make it easier for the allottees to get their money back plus interest. The interest rate, which is due starting from the day the sums were paid by the allottees, should be equal to the maximum marginal cost of lending rate of the State Bank of India + 2%.
  • According to the law’s stipulations, the RERA authority may also assist any other competent authority or agency in completing the project. The RERA authority may also seize control of the project and finish it either directly or indirectly through another organization.
  • For any violation of the Act’s rules, such as failing to finish the project or engaging in other non-compliance, the RERA authority may additionally impose fines on the promoter. The fine may be as much as 10% of the RERA authority’s projected cost estimate for the real estate project.
  • Additionally, the promoter may be required to pay back any debt of land revenue if the RERA authority’s penalty is not paid. For any violation of the Act, the RERA authority may even file a criminal complaint against the promoter.


The first remedy accessible to homebuyers is provided by Section 8 of RERA, which was passed by the Legislature in response to instances in which construction projects were abandoned by the builders. According to this Section, the RERA Authority has the authority to work with the State Government to find a way to move stalled projects toward completion. In accordance with this rehabilitation strategy, either the State Construction Company (such as the NBCC, which completed the Amrapali projects) or the Association of the Buyers of a specific project may assume control of the project and carry out the construction independently under the supervision of the RERA Authority.

This has been done in the case of “Piyush Heights Resident Welfare Association Vs. Piyush Buildwell India Limited” by the Haryana RERA. In this case, the association of homebuyers was made responsible for the completion of the project in a time-bound manner.


To sum up, Section 8 of the RERA is an essential clause that guarantees the protection of homebuyers’ interests in the event that the registration of a real estate project is canceled or expires. The RERA authority is required to help repay the money paid by the allottees and interest, take the necessary steps to finish the project, and impose fines on the promoter for non-compliance. This clause has proven crucial in encouraging accountability and openness in the real estate industry and has increased homebuyers’ confidence.

Disclaimer– The above article is based on the personal interpretation of related laws, which may differ from person to person. The readers are expected to take expert opinion before relying on this article. For more clarification, the readers can be expected at  

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