9. Disclosure Requirements of Promoters under RERA
Introduction
Transparency is the cornerstone of the Real Estate (Regulation and Development) Act, 2016, and disclosure requirements form the foundation of this transparency framework. Promoters are required to disclose comprehensive, accurate, and up-to-date information about their projects to the Real Estate Regulatory Authority and to the public.
Unlike earlier regulatory regimes, where disclosures were limited and fragmented, RERA mandates a continuous disclosure system, enabling buyers to make informed decisions throughout the lifecycle of the project.
Legal Framework
Sections 4 and 11 of RERA impose obligations on promoters to:
- Submit detailed information at the time of registration
- Regularly update project information on the RERA portal
The information disclosed becomes part of the public domain and is accessible to all stakeholders.
Nature of Disclosures
Promoters are required to disclose a wide range of project-related information, including:
- Project details and specifications
- Layout plans and sanctioned approvals
- Timeline for completion
- Details of units and inventory
- Status of construction
These disclosures are intended to ensure complete transparency and accountability.
Continuous Disclosure Obligation
One of the distinguishing features of RERA is the requirement for periodic updating of project information. Promoters must update:
- Construction progress
- Status of approvals
- Changes in project plans
- Financial and compliance details
This ensures that buyers have access to real-time project information.
Failure to update information is treated as non-compliance, even if the initial disclosure was accurate.
Practical Issues in Compliance
Maintaining consistent and accurate disclosures can be challenging in practice due to:
- Changes in project execution
- Delays in approvals
- Coordination between multiple stakeholders
- Internal data management issues
Any inconsistency between disclosed information and actual execution may lead to disputes.
Risks of Inadequate Disclosure
Non-compliance with disclosure requirements may result in:
- Regulatory penalties
- Buyer complaints and litigation
- Loss of credibility in the market
- Increased scrutiny by authorities
Buyers frequently rely on RERA disclosures as evidence in disputes, making accuracy critical.
CABTA Insights
- Disclosure is an ongoing compliance obligation, not a one-time requirement
- Inconsistent or outdated disclosures are a major source of litigation
- Internal systems should be established for regular updates and verification
- Transparency enhances long-term credibility and buyer confidence
Disclosure management should be treated as a structured compliance process
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