RERA in 2025: Latest Updates, News, and Laws Shaping India’s Real Estate Sector

Goa RERA Stops Developers From Delay Tactics

In March 2025, Goa RERA ordered Expat Projects & Development Pvt Ltd to pay Rs. 20.5 lakh to a buyer, an Army colonel, because they failed to handover a 1BHK flat purchased in 2018. Goa RERA rejected the testimony of the developer who asserted the Covid-19 pandemic was sufficient reason for the development delays. Goa RERA imposed 11.1 % annual interest on the payment as well as a Rs. 6 lakh penalty under Section. 61 of the RERA Act. The case provides, once again, the assurance that RERA is committed to the accountability of developers when there has been a delay.

State RERA for Telangana Delivers Penalty for Breach Of Order 

In March 2025, Telangana Real Estate Regulatory Authority (TLSRERA) delivered a penalty of Rs. 10.6 lakh against a construction company for breaching the approved design of the apartment project located in Nizampet in Hyderabad. This enforcement action reinforces RERA's applicability and effective enforcement approach will not stop developers from breaking the approved design - like in this example, consumers are protected from interesting designs or layouts that they have not previously experienced.

State RERA, Panchkula Implement Online Inquiry 

In April 2025, Panchkula RERA launched an online inquiry platform to enable complaint processing and reduce any case backlog that it was facing. Panchkula RERA hopes this provides faster outcomes to real estate disputes and increases accessibility for both home buyers and home developers alike. 

MahaRERA Issues Notice for Full-disclosure for Advertisements. 

In April 2025, MahaRERA mandated that all housing advertisements must include RERA registration information, including project number & unique QR code which must be prominently displayed in all advertisements. Being able to verify legitimacy before investment ensures that consumers will be able to ensure full-disclosure transparecy around their prospective development.

Key News Highlighting RERA’s Impact

Recent news stories reflect both the successes and challenges of RERA implementation across India.

Bengaluru Homebuyers Raise Doubts about RERA's Effectiveness

In the Bengaluru report for Hindustan Times, it was reported that the homebuyers raised doubts about RERA's effectiveness and called RERA a "mere formality" in April 2025. Defective title documents and developers giving possession of the flat on conditions were mentioned, particularly in a city where 3BHK flats sell easily for over ₹2 crore. A Reddit post had spurred discussion, furthering concern regarding gaps in RERA compliance and calling upon agencies to tighten compliance systems for RERA requirements.

Odisha Homebuyer Receives Compensation

In April 2025, an apartment buyer in Bhubaneswar was to receive Rs 76 lakh in compensation for delayed possession according to OTV News. This case, enforced by RERA and upheld by the courts provides a solid precedent for protecting homebuyers in the future, as well as developers being accountable for delays.

UP RERA Questions Insolvency Order

In March 2025, UP RERA (Uttar Pradesh RERA) had made the decision to appeal a National Company Law Appellate Tribunal (NCLAT) order connected to the insolvency of Ansal API Ltd. UP RERA made it clear that Ansal API had defaulted in terms of 1,234 RERA directions and it still has pending recovery certificates to the total value of Rs 113 crore. This decisive move outlines UP RERA's position regarding homebuyers who have been left waiting for years either for possession, or refund.

MahaRERA Targets Lapsed Projects

In December 2024, MahaRERA issued show-cause notices to 10,773 lapsed projects registered since 2017 for failing to update project statuses. This initiative aims to ensure developers maintain transparency and comply with RERA’s reporting requirements, safeguarding buyer interests.

Notable RERA Laws and Amendments

RERA’s legal framework continues to adapt to address loopholes and enhance enforcement. Below are key laws and proposed changes.

RERA Registration Requirements 

Section 3 of the RERA Act requires all development projects - above 500 square meters and/or eight apartments to be registered with RERA prior to marketing or sale. In October 2024, MahaRERA clarified that projects granted completion certificates prior to commencement of RERA, were exempted and not required to register, while all others would be subject to RERA. This will guarantee only registered projects be marketed, thus reducing potential fraud.

Pre-Launch Offers Limitations

In April 2024, TS-RERA made it very clear regarding launch offers prior to RERA registration, that in initiating the launch offer, ideally all projects must obtain local approvals and mark registration with RERA. The advertising phase cannot begin without complying with the local authority and RERA. This rule is intended to protect buyers from purchasing in non-approved projects.

Conditional Possession

UPRERA in October 2024 cautioned developers not to provide conditional possession, meaning possession of the flat without completed installations. Developers must provide the mentioned installations at time of possession, registering buyers rights.

Proposed changes for better enforcement

In April 2023, the CAC submitted proposed changes to improve the execution of recovery warrants against errant developers. In Maharashtra, recovery warrants worth Rs 625 crores were requested, however, the execution rate was only around 20-30%. Since it has been difficult to ensure enforcement, the CAC wants to provide a way for the RERA authorities to enable faster compliance. In addition, homebuyers in several regions have emphasized that instead of amending the law, the government should give maximum benefit from the provisions of RERA, as there are different kinds of deficiencies which remain untested as a result of tardy enforcement.Having said all of that, RERA has been successful, but it still faces difficulties in being effective.

Lack of an enforcement machinery

A Mint report from March 2024, pointed out that RERA lacked enforcement machinery, which allowed some developers to disregard orders. For instance, Rama Sanyal, previously purchased a flat worth ₹1.10 crore in Mumbai, but had to suffer delays and a disorganized developer. Her strong preference is that recovery warrants be enforced; unfortunately, recovery warrants are seldom acted upon.

Corruption

In January 2024, a RERA officer from Telangana was caught with crores of bucks (worth Rs 100 crore), and the media reported about his assets and cash. LOC's question is about the level of corruption in the agencies charged with overseeing issues regarding RERA. With so many of these online events happening around the country about RERA, this incident may only further reduce public confidence in RERA and its guiding principles.

Regional differences

RERA implementation varies from state to state. While UPRERA and MahaRERA have executed measures to recognize complaints about developers, other states seldom address complaints or have the power to do so to penalize the extraordinary wrongful behavior (that appears somewhat random). The outcome is the inconsistent protection of buyers in protection States and Union territories.

How RERA Benefits Homebuyers and Developers

When RERA is implemented efficiently, RERA has advantages for both parties.

For Homebuyers

RERA enforces transparency with mandatory disclosures of projects, secures investment with escrow accounts, and provides forums for disputes. The Bhubaneswar compensation case, as well as the Goa refund, shows that RERA is capable of dispensing justice.

For Developers

RERA promotes compliance amongst developers, improving credibility, and ultimately increasing buyers. The clarity and predictability from RERA can promote certainty surrounding legal disputes and also provide extensions during a crisis, such as Covid-19.

Future outlook of RERA in India 

The ability to achieve a growing real estate sector is high, with RERA at the centre of the effort. Proposed amendments to RERA aim to strengthen enforcement, while the advancement of technology like AI in e-Courts with UPRERA are exciting prospects. That being said, addressing the weaknesses identified in enforcement and regional differences are high priorities. Urbanization will continue to accelerate the demand for housing, which will necessitate new approaches to increase and finance housing. Ultimately, RERA will play a critical role in balancing the need for buyer protection and industry's ability to grow. The concept of balancing buyer's need for protection, and industry's ability to meet the significant demand for housing will determine RERA's success in shaping India's real estate sector by 2030.

Conclusion

RERA has impacted a positive outlook on India’s real estate sector by stability and accountability. Important recent updates- Karnataka court ruling, Goa's payment refund, and MahaRERA's advertisements - are just some of the examples of positive change, reflecting the interest of homebuyer's rights. The slow implementation and corruption are things that will need to be addressed to improve the impact of RERA. Homebuyers and developers will be able to navigate the market with confidence, by being aware of how RERA is adapting and what rights are afforded to them through RERA's protections. As RERA continues to evolve and make sense of the state of affairs, we view RERA as a fundamental attribute of India's continued real estate growth in 2025 and beyond.