Inquiries, Interim Orders and a Defaulter List: The RERA Authority's Powers for Bengaluru Buyers

The buyers of a half built Bengaluru tower notice something worrying. Fresh advertisements have appeared for a new phase, the builder is collecting money for it, and work on their own tower has slowed to a crawl. They have filed complaints, but a final order could be months away. What they want to know is whether the regulator can act now, before more money changes hands.

The Real Estate (Regulation and Development) Act, 2016 gives the Real Estate Regulatory Authority a set of powers that go beyond deciding individual complaints. It can call for information, order an inquiry, restrain a party with an interim order, issue binding directions, and publish the names of defaulting promoters. This guide reads sections 34 to 39 as published in the Gazette of India and explains how a Bengaluru buyer can use them.

The short answer. Section 35 of the RERA Act lets the Authority, on a complaint or on its own, call on any promoter, allottee or real estate agent to furnish information and appoint persons to inquire into their affairs, with civil court powers for documents and witnesses. Section 36 says that where, during an inquiry, the Authority is satisfied that a contravention has been committed and continues, or is about to be committed, it may by order restrain the party until the inquiry ends or until further orders, without notice where it deems it necessary. Section 34(c) requires the Authority to keep a public database of defaulting promoters. The trade-off: these powers can stop harm early, but they are the Authority's to exercise, so a buyer's request needs clear evidence of urgency to persuade it.

What functions does the Act give the Authority?

The Gazette of India copy of the RERA Act lists the Authority's functions in section 34. They include registering and regulating real estate projects and agents, under section 34(a), and publishing and maintaining a website of records, for public viewing, of all registered projects, including information provided in the application, under section 34(b).

Two functions matter most for a buyer facing a problem. Section 34(f) is to ensure compliance of the obligations cast upon the promoters, the allottees and the real estate agents under the Act and the rules and regulations. Section 34(g) is to ensure compliance of its own regulations, orders or directions.

Section 34(c) adds a public warning tool. The Authority is to maintain a database on its website, for public viewing, and enter the names and photographs of promoters as defaulters, including the project details, registration for which has been revoked or have been penalised under the Act, with reasons, for access to the general public.

How can the Authority investigate a builder?

Section 35(1) says that where the Authority considers it expedient, on a complaint or suo motu, it may, by order in writing and recording reasons, call upon any promoter or allottee or real estate agent at any time to furnish in writing such information or explanation relating to its affairs as the Authority may require, and appoint one or more persons to make an inquiry in relation to their affairs.

Section 35(2) gives the Authority, while exercising these powers, the same powers as a civil court under the Code of Civil Procedure, 1908 while trying a suit, in respect of the discovery and production of books of account and other documents, summoning and enforcing the attendance of persons and examining them on oath, issuing commissions for the examination of witnesses or documents, and any other prescribed matter.

For buyers, the key words are "on a complaint". A well documented complaint can be the trigger for an inquiry into the promoter's affairs, not only a decision on one buyer's claim.

In a stalled project, the questions a buyer might ask the Authority to put to the promoter could include how much has been collected from allottees, how the separate project account has been used, and which approvals remain pending. Several of those points connect to what the promoter must declare or update under sections 4 and 11, so a gap between those disclosures and what buyers see on site is a useful starting point for a complaint that asks for an inquiry.

What is an interim order under section 36?

Section 36 is the Act's emergency brake. Where during an inquiry the Authority is satisfied that an act in contravention of the Act, or the rules and regulations, has been committed and continues to be committed, or that such act is about to be committed, the Authority may, by order, restrain any promoter, allottee or real estate agent from carrying on such act until the conclusion of the inquiry or until further orders, without giving notice to such party, where the Authority deems it necessary.

Three conditions stand out: there must be an inquiry, the Authority must be satisfied about a continuing or imminent contravention, and the order restrains a specific act. The power to act without notice is for cases where the Authority deems it necessary.

The table below sets out the main powers side by side.

What other powers can the Authority use?

Section 37 says the Authority may, for the purpose of discharging its functions, issue such directions from time to time to the promoters or allottees or real estate agents as it may consider necessary, and such directions shall be binding on all concerned.

Section 38(1) gives the Authority powers to impose penalty or interest in regard to any contravention of obligations cast upon the promoters, the allottees and the real estate agents under the Act or the rules and regulations. Section 38(2) says the Authority shall be guided by the principles of natural justice and, subject to the Act and rules, shall have powers to regulate its own procedure.

Section 38(3) reaches into competition. Where an issue is raised relating to an agreement, action, omission, practice or procedure that has an appreciable prevention, restriction or distortion of competition in connection with the development of a project, or has the effect of market power of monopoly being abused to affect the interest of allottees adversely, the Authority may suo motu make a reference to the Competition Commission of India.

Where an order is ignored, the Act also provides recovery and penalties. Our guide on what to do when a builder ignores a RERA order covers sections 40 and 63.

Can the Authority correct a mistake in its order?

Yes, within limits. Section 39 says the Authority may, at any time within a period of two years from the date of the order, with a view to rectifying any mistake apparent from the record, amend any order passed by it, and shall make such amendment if the mistake is brought to its notice by the parties.

The first proviso says no such amendment shall be made in respect of any order against which an appeal has been preferred. The second proviso says the Authority shall not, while rectifying a mistake apparent from record, amend the substantive part of its order.

So if your order contains an obvious error, such as a wrong date, amount or unit number, raise it with the Authority promptly. A disagreement with the substance of the decision is a matter for appeal instead.

How can a Bengaluru buyer ask the Authority to act?

The powers above are the Authority's to use, but a buyer's complaint can be what brings a problem to its attention. The quality of that complaint matters. Use this checklist:

1. Check the Authority's website for the project's registration and any defaulter listing.
2. Set out the specific obligation you say has been breached, with section numbers.
3. Attach evidence: agreement, receipts, demand letters, photographs and correspondence.
4. Explain why the harm is continuing or about to happen, if you seek interim relief.
5. Ask clearly for what you want, such as an inquiry, a direction or a restraint.
6. Coordinate with other affected buyers so that the Authority sees the full picture.
7. Follow up in writing and keep copies of every filing and hearing notice.

Before booking any new project, the same website can help. Our guide to checking for unregistered projects under sections 3 and 59 explains the first checks to make.

What do Bengaluru buyers ask about the RERA Authority's powers?

Can RERA stop a builder from doing something during a case?

Yes. Section 36 says that where, during an inquiry, the Authority is satisfied that a contravention has been committed and continues, or is about to be committed, it may by order restrain the promoter from carrying on that act until the inquiry ends or further orders, without notice where it deems it necessary.

Does RERA publish a list of defaulting builders?

Section 34(c) requires the Authority to maintain a database on its website, for public viewing, with names and photographs of promoters as defaulters, including project details, where registration has been revoked or they have been penalised under the Act, with reasons, for access to the general public.

Can RERA investigate a builder's accounts?

Section 35 lets the Authority, on a complaint or on its own, call for information from a promoter and appoint persons to inquire into its affairs. While doing so it has civil court powers for production of books of account and documents, summoning persons and examining them on oath.

Can a mistake in a RERA order be corrected?

Yes. Section 39 lets the Authority, within two years from the date of an order, amend it to rectify a mistake apparent from the record, and it shall do so if the parties point it out. It cannot amend an order under appeal or change the substantive part of the order.

Last updated 2026-10-18. PropNewz Team.