RERA Act, Rules or Regulations? Which One Sets Your Interest Rate and Forms in Bengaluru
The RERA Act sets rights and the equal interest rule, State rules under Section 84 set interest rates and the agreement for sale form, and Authority regulations under Section 85 set complaint forms and fees. How Bengaluru buyers can tell which layer decides what.
Two Bengaluru buyers argue over the delay interest their builder owes. One quotes the RERA Act. The other says the Act does not give a number at all. Both are partly right. The Real Estate (Regulation and Development) Act, 2016 says interest is payable, and that the buyer's and builder's rates must match, but the actual rate is left to rules made by the State Government. Knowing which layer of RERA law sets which detail, the Act, the State's rules or the regulator's regulations, saves buyers from arguing with the wrong document.
The short answer. The Act sets the rights and duties. Section 84 requires the appropriate Government to make rules within six months of the Act's commencement, covering matters such as the rate of interest under Sections 12, 18 and 19 and the form of the agreement for sale under Section 13(2). Section 85 requires each Authority to make regulations within three months of its establishment, consistent with the Act and the rules, covering matters such as the form, manner and fee for complaints under Section 31(2). The trade-off: this layered design lets each State tailor procedure, but it means a buyer must read Karnataka's rules and K-RERA's regulations, not just the central Act, to know the exact numbers and forms that apply.
What does the Act itself decide?
The principles and the obligations. The text of the RERA Act creates the registration requirement, the promoter's and allottee's duties, the right to refund and interest, and the penalties. It also fixes some details directly. Section 2(za) defines interest as the rates payable by the promoter or the allottee, and its Explanation says the rate chargeable from the allottee by the promoter in case of default shall be equal to the rate the promoter is liable to pay the allottee in case of default.
The same Explanation fixes the period. Interest payable by the promoter runs from the date the promoter received the amount until it is refunded with interest, and interest payable by the allottee runs from the date of default until payment. What the Act does not do is name the rate. That job goes to the rules.
PropNewz worked through how that interest is calculated on each payment in our explainer on refund interest under Section 2(za).
What do the State's rules decide?
The numbers and the forms. Section 84(1) says the appropriate Government shall, within six months of the commencement of the Act, make rules by notification to carry out its provisions. Section 84(2) lists matters the rules may cover. For a buyer, several stand out: the rate of interest payable under Section 12; the form and particulars of the agreement for sale under Section 13(2); the rate of interest payable under Section 18(1)(b); and the rates of interest payable under Sections 19(4) and 19(7).
The list continues with matters buyers meet later: the details to be published on the Authority's website under Section 34, the manner of recovery of interest, penalty and compensation under Section 40(1), the manner of implementing orders under Section 40(2), the form, manner and fee for appeals under Section 44(2), the terms for compounding offences under Section 70, and the manner of inquiry by the adjudicating officer under Section 71(1).
The Ministry of Housing and Urban Affairs' FAQs on the RERA Act dated July 2025 restate the timeline: under Section 84, rules are required to be prepared by the appropriate Government within six months of the commencement of the Act.
| Layer | Made by | Deadline in the Act | Examples that matter to buyers |
|---|---|---|---|
| The Act | Parliament | Not applicable | Rights, duties, equal interest rule in Section 2(za), penalties |
| Rules under Section 84 | Appropriate Government | Within 6 months of commencement | Interest rates under Sections 12, 18 and 19; agreement for sale form |
| Rules under Section 84 | Appropriate Government | Within 6 months of commencement | Recovery under Section 40; appeal form and fee |
| Regulations under Section 85 | The Authority | Within 3 months of establishment | Complaint form, manner and fee under Section 31(2) |
| Recommendations under Section 42 | Central Advisory Council | Not applicable | Binding only if turned into rules under Section 42(2) |
What do the regulator's regulations decide?
Procedure at the Authority. Section 85(1) says the Authority shall, within three months of its establishment, by notification, make regulations consistent with the Act and the rules to carry out the purposes of the Act. Section 85(2) lists matters they may cover, starting with the form and manner of making applications and the fee payable.
For a complaining buyer, the most relevant link is Section 31(2), which says the form, manner and fees for filing a complaint under Section 31(1) shall be as specified by regulations. The MoHUA FAQs restate that, under Section 85, regulations are required to be notified by the Authority within three months of its establishment. They add that while Section 81 lets the Authority delegate powers and functions, it cannot delegate the responsibility of making regulations under Section 85.
In practice, that means the complaint form you fill in and the fee you pay at K-RERA come from K-RERA's own regulations, which must stay consistent with the Act and Karnataka's rules. Regulations can also be amended by the Authority over time, so the version you download today may differ from the one a neighbour used two years ago. Always take the form from the regulator's current portal on the day you file, and keep a copy of the regulation in force on that date with your complaint papers.
Which rules matter after you win a case?
The ones on recovery and enforcement. Winning an order is one step; collecting on it is another. Section 84(2) lets the appropriate Government prescribe the manner of recovery of interest, penalty and compensation under Section 40(1), and the manner of implementing orders, directions or decisions of the adjudicating officer, the Authority or the Appellate Tribunal under Section 40(2).
The same list covers the form, manner and fee for filing an appeal under Section 44(2), the manner of inquiry by the adjudicating officer under Section 71(1), and the terms and payment for compounding offences under Section 70. If you are on either side of an appeal, or waiting for an award to be paid, these are the rule provisions that shape the next steps.
In other words, the Act tells you that you are entitled to recovery, and the rules tell the system how to carry it out. A buyer whose award has not been paid should ask which rule governs recovery in Karnataka and what the Authority has done under it.
Why did the Centre flag rules and regulations in 2025?
Because they can drift from the Act. At the 5th meeting of the Central Advisory Council on 4 September 2025, according to the government's release, the Council advised that rules and regulations made under the Act should be studied to ensure they are in consonance with the parent Act, and suggested a committee in the ministry with representatives of all stakeholders to drive reforms.
For a buyer, that is a useful reminder. If a rule or regulation appears to cut down a right the Act gives you, the Act is the parent law. Section 85(1) itself requires regulations to be consistent with the Act and the rules. That is a point to raise with an advocate rather than to assume, but it is worth knowing the hierarchy exists.
The Council's recommendations themselves are advisory. Section 42(2) says the Central Government may specify rules to give effect to them.
Where does the equal interest rule leave a Bengaluru buyer?
With symmetry fixed by the Act and the rate fixed by the rules. Because Section 2(za) requires the promoter's default rate and the allottee's default rate to be equal, an agreement that charges you a higher rate for late payment than the builder pays you for delay is out of line with the Act. The actual number for a Karnataka project is the one prescribed in the State's rules. PropNewz explained that symmetry in our guide to the same interest rate for late payment and delay.
How should a buyer use these layers in practice?
Check each document for what it controls. Work through this checklist.
- Read the Act for your rights: refund and interest under Section 18, information under Section 19 and the equal-rate rule in Section 2(za).
- Find the interest rate prescribed in Karnataka's RERA rules for Sections 12, 18 and 19.
- Compare your agreement for sale with the form prescribed in the rules under Section 13(2).
- Check K-RERA's regulations for the current complaint form, manner and fee under Section 31(2).
- Note the appeal form and fee prescribed in the rules before you need them.
- Where a rule or regulation seems to conflict with the Act, raise it with an advocate.
- Keep copies of the versions of the rules and regulations in force on the dates that matter to your case.
Frequently asked questions
Who decides the RERA interest rate for delayed possession?
The Act requires interest but leaves the rate to rules. Section 84(2) of the RERA Act lets the appropriate Government prescribe the rate of interest payable under Sections 12, 18(1)(b), 19(4) and 19(7). Section 2(za) requires the rates payable by promoter and allottee on default to be equal.
How quickly were RERA rules and regulations meant to be made?
Section 84(1) requires the appropriate Government to make rules within six months of the Act's commencement, and Section 85(1) requires each Authority to make regulations within three months of its establishment. The MoHUA FAQs of July 2025 restate both timelines.
Where does the RERA complaint form and fee come from?
Section 31(2) of the RERA Act says the form, manner and fees for filing a complaint shall be as specified by regulations. Those regulations are made by the Authority under Section 85, and must be consistent with the Act and the rules made under it.
Must RERA regulations follow the Act?
Yes. Section 85(1) of the RERA Act says the Authority shall make regulations consistent with the Act and the rules made under it. In September 2025, the Central Advisory Council also advised studying rules and regulations to ensure they are in consonance with the parent Act.
Last updated 2026-10-24. PropNewz Team.
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