The Enforcement Directorate has warned homebuyers to report builders who refuse to share RERA registration details, insist on cash payments, delay registered documents or fail to refund money. The advisory came after the ED provisionally attached assets worth Rs 129.80 crore belonging to an Ahmedabad based real estate company and its promoters in an alleged homebuyers fraud case.What is RERA and why does it matterRERA refers to the Real Estate (Regulation and Development) Act, 2016, which came into force on May 1, 2016. The law aims to protect homebuyers, improve transparency in real estate projects and provide a regulatory mechanism for disputes. Under Section 3, projects generally require registration unless they fall within specified exemptions, including projects where the proposed land area does not exceed 500 square metres or the number of apartments does not exceed eight, subject to the Act and applicable state rules.Why the ED warning mattersThe ED has advised buyers to verify RERA registration, statutory approvals, title documents, land records and encumbrance details before making payments. It specifically warned against relying only on oral promises, booking forms, notarised papers or assurances from brokers. Buyers should also check whether the property is mortgaged or involved in a dispute and insist on a proper agreement for sale or sale deed.How buyers can check RERAHomebuyers can use the official RERA portal of the state where the project is located to verify its registration. For example, the Uttar Pradesh RERA website provides searches for registered projects and promoters and also has a facility to verify RERA registration. Buyers should compare the official project information with the documents and claims provided by the builder before making a substantial payment.What it means if a builder refusesA builder refusing to provide RERA details does not automatically mean fraud, as some projects may be exempt from registration. However, where registration is applicable, refusal to share details is a serious red flag. Buyers should stop further payments, verify the project’s registration, approvals, title and encumbrance records, and preserve all receipts and communications. The ED has also flagged cash demands, withheld documents, delayed registration, failed refunds and guaranteed buybacks as warning signs. If such issues continue, buyers can approach the state RERA authority or other competent authorities.
