The Real Estate (Regulation and Development) Act, 2016 — better known as RERA — was introduced to bring transparency and accountability to a sector that had long operated without much of either. For anyone buying, selling, or redeveloping property in Maharashtra, understanding how RERA works, and where it applies, is essential.
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What MahaRERA does
Maharashtra was the first state to adopt RERA, establishing the Maharashtra Real Estate Regulatory Authority (MahaRERA). Its core functions are straightforward: it requires developers to register projects before marketing or selling units, mandates disclosure of project timelines and approvals, protects buyers’ interests in real estate transactions, and provides a dedicated forum for dispute resolution — meaning complaints don’t have to go through the general court system to be heard.
RERA and redevelopment: sale vs. rehabilitation
A question we hear often from housing societies is whether RERA applies to redevelopment projects at all. The answer is nuanced: MahaRERA’s applicability to a redevelopment project is generally split between its sale component (new units built for open-market sale, which typically must be registered under RERA) and its rehabilitation component (units allotted to existing society members, which are treated differently). Understanding this distinction matters when a society is negotiating terms with a developer, since it affects what protections and disclosures apply to which part of the project.
What this means for members
For society members going through redevelopment, RERA registration of the sale component is a meaningful signal — it means the developer has committed to public, verifiable timelines and financial disclosures, and that funds are typically expected to be routed through monitored escrow arrangements rather than moving informally. It doesn’t eliminate the need for careful negotiation, but it does raise the baseline level of accountability compared to pre-RERA redevelopment deals.
Getting the details right
RERA compliance is one of several things we check for when advising housing societies and landowners on redevelopment and land transactions — alongside developer track record, financial strength, and the specifics of the development agreement itself. If you’re evaluating a redevelopment proposal and want a second, independent read on how it’s structured, we’re happy to help.
Related reading: RERA compliance in redevelopment projects: what society members should check before signing, and a step-by-step guide to the redevelopment process.