The Real Estate (Regulation and Development) Act, 2016 (RERA) is a landmark legislation introduced by the Government of India to regulate the real estate industry and protect the interests of homebuyers. Before RERA, the sector was largely unorganized, leading to delays, fraud, and lack of transparency.

RERA mandates that all residential and commercial real estate projects above a certain size must be registered with the respective state RERA authority. Developers are required to provide complete project details, including timelines, layout plans, approvals, and financial disclosures.

One of the key provisions is that developers must deposit 70% of the project funds into a separate escrow account, ensuring that money collected from buyers is used only for that specific project. This reduces the risk of fund diversion and project delays.

The Act also establishes fast-track dispute resolution mechanisms through Real Estate Regulatory Authorities and Appellate Tribunals, enabling quicker justice for buyers.