RERA in Parliament, 2026: What the Centre's Reply Means for a Bengaluru Homebuyer

On 30 July 2026, a written answer in the Lok Sabha set out, in a few hundred words, the protections a Bengaluru homebuyer can rely on under the Real Estate (Regulation and Development) Act, 2016. The reply, given by the Minister of State for Housing and Urban Affairs and published by the Press Information Bureau, also said the Ministry had spent the past year consulting homebuyers, developers and state regulators on Standard Operating Procedures and "amendments needed in the Act."

That second line is the one that tends to get attention. But for a buyer signing a booking form this month, the first part is more useful: a short official restatement of what the law already requires. This guide walks through it, alongside the Central Advisory Council's own 2025 record. It does not predict any amendment.

The short answer. The July 2026 reply says RERA mandates registration of projects with the Regulatory Authority before any advertisement, marketing, booking or sale, with a penalty of up to 10 per cent of the estimated project cost for contravention. It says promoters must disclose project details and approvals and deposit 70 per cent of amounts realised from buyers in a separate account used only for land cost and construction, that RERA provides for disposal of matters within 60 days, and that Section 40 allows recovery of unpaid sums as arrears of land revenue. The trade-off: these protections work best for buyers who check registration and disclosures before paying, not after a dispute begins.

What did the July 2026 reply say RERA requires?

Four things a buyer can act on. First, registration comes before selling. The reply says "RERA mandates the registration of real estate projects with the Regulatory Authority before any advertisement, marketing, booking, or sale and in case of contravention of this provision, the promoter is liable to a penalty of up to 10% of the estimated cost of the real estate project, as determined by the Regulatory Authority."

Second, disclosure and money ring-fencing. It says RERA "mandates the promoters to disclose all necessary project details & approvals and deposit 70% of the amounts realized from homebuyers in a separate bank account, which shall be utilized only for land cost and project construction."

Third, speed. It says RERA "provides for a fast-track dispute resolution mechanism by making the provision of disposal of matter within 60 days." Fourth, recovery: "Section 40 of RERA provides for recovery of unpaid interest, penalty or compensation from the promoter as arrears of land revenue and empowers the Adjudicating Officer, Regulatory Authority or Appellate Tribunal to issue necessary orders or directions."

Why does the reply mention states and the Constitution?

Because land is a state subject, which shapes how RERA works on the ground. The reply opens by noting that under Entry 18 of the State List in the Seventh Schedule, "'Land' and 'Colonization' are State subjects", and that Parliament enacted RERA by drawing on Entries 6, 7 and 46 of the Concurrent List "to regulate the contractual relationship between homebuyers and promoters."

For a Bengaluru buyer, that explains why the central Act is applied through state rules and a state authority. It also explains why the reply says the Ministry "regularly communicates with State Governments on various RERA-related issues, including enhancing the functional and administrative autonomy of Regulatory Authorities and ensuring adequate staff deployment."

The reply also mentions that the Ministry set up a committee to address challenges in registering projects across states and union territories, and that its report "has been shared with all the Real Estate Regulatory Authorities for further necessary action." It does not give the report's recommendations. For a buyer, the useful signal is that registration gaps are a recognised problem at the national level, which is one more reason to confirm registration yourself rather than rely on a sales team's word that it is "in process".

What is the Central Advisory Council and what has it said?

A national advisory body under the Act. The July 2026 reply says that "as per Section 41 of RERA, Central Advisory Council (CAC) has been constituted under the Chairmanship of Hon'ble Minister of Housing and Urban Affairs to advise and recommend the Central Government on all matters concerning the implementation of the Act, including safeguarding the interests of the homebuyers."

The Council's fifth meeting, on 4 September 2025, is described in a separate PIB release. It records that 35 states and union territories had established Real Estate Regulatory Authorities, 29 had set up Appellate Tribunals and 27 had appointed Adjudicating Officers, with 1,51,113 projects and 1,06,545 agents registered and 1,47,383 complaints disposed of by regulatory authorities nationwide.

The same release says the Council recommended Standard Operating Processes for regulatory authorities, stronger enforcement of orders and "a detailed framework to get stalled projects completed." It suggested measures "to curb the misleading advertisements", and considered concerns on delays in project registration, local approvals, withdrawals from RERA accounts after completion and filing of quarterly progress reports. At that meeting, the Union Minister launched a Unified RERA Portal, rera.mohua.gov.in.

Is the 60-day disposal period a guarantee?

It is a statutory target, not a fixed deadline. The July 2026 reply describes "the provision of disposal of matter within 60 days." The Ministry's own FAQ on the RERA Act explains the wording behind it: Section 29 says the Authority should endeavour to dispose of complaints as expeditiously as possible and not later than sixty days from filing, and where that is not possible, it is required to record its reasons. The FAQ says the Appellate Tribunal has a similar sixty-day target for appeals under Section 44.

For a buyer, the practical point is that the period is a standard the Authority must explain itself against, not a promise of an outcome by a date. A complete complaint, with the agreement, receipts, correspondence and a clear statement of the relief sought, gives the Authority what it needs to work within that standard.

Does the reply mean RERA is about to change?

Not on its own. The reply says that "in last one year, the Ministry has held regular consultations with stakeholders including representatives of Homebuyers' Associations & Real Estate Developers, State Real Estate Regulatory Authorities, among others, for effective implementation of RERA, development of Standard Operating Procedures (SOPs) and amendments needed in the Act."

It does not list any specific amendment, draft or timeline. The September 2025 Council meeting likewise spoke of "next generation reforms" and asked the Ministry to conduct "a detailed exercise" to work out measures, without fixing what those would be. A buyer should therefore make decisions on the law as it stands, and treat talk of future changes as something to watch rather than rely on.

How does this help a buyer comparing projects in Bengaluru?

It gives an official baseline. If a sales pitch contradicts what the government itself has restated in Parliament, the pitch is the thing to question. An offer to book before registration, a request to pay outside the project account, or vague answers about approvals all cut against the protections the reply describes.

PropNewz explained how to check registration status before responding to an advertisement in our guide to verifying RERA registration before advertising, and mapped the full journey in our stage-by-stage RERA roadmap.

1. Ask for the project's RERA registration number before you accept any brochure price or pay a booking amount.
2. Search the number on the state RERA website and check that the project name, promoter and address match.
3. Read the approvals and project details the promoter has disclosed on the RERA website.
4. Confirm the separate project bank account in writing, and pay only into it.
5. Keep every advertisement, message and brochure you were shown, with dates.
6. If a dispute arises, file with complete documents so the Authority can move within its timelines.
7. Follow official sources such as PIB and the Ministry for any change to the Act, rather than sales claims about it.

Frequently asked questions

What did the government tell Parliament about RERA in July 2026?

In a written Lok Sabha reply on 30 July 2026, the Minister of State for Housing and Urban Affairs said RERA mandates registration before any advertisement, marketing, booking or sale, a separate account for 70 per cent of buyer money, disposal of matters within 60 days, and recovery under Section 40.

What is the penalty if a builder sells before RERA registration?

According to the July 2026 reply published by PIB, a promoter who advertises, markets, books or sells before registering a project is liable to a penalty of up to 10 per cent of the estimated cost of the real estate project, as determined by the Regulatory Authority.

Is the RERA Act being amended?

The July 2026 reply says that over the past year the Ministry held consultations with homebuyers' associations, developers and state authorities on implementation, Standard Operating Procedures and amendments needed in the Act. It does not, in that reply, set out any specific amendment or date.

What is the Central Advisory Council under RERA?

According to the July 2026 reply, the Council is constituted under Section 41 of the RERA Act, chaired by the Union Minister of Housing and Urban Affairs, to advise and recommend the Central Government on implementing the Act, including safeguarding homebuyers' interests.

This article summarises official PIB releases for information only and is not legal advice. For a specific project, check the Karnataka RERA website and consult a lawyer.

Last updated 2026-11-11. PropNewz Team.