BACK TO RERA Act 2016
RERA Act 2016
Section 84
Power of State Government to Make Rules
THE STATUTE
Original Text
The appropriate Government may, by notification, make rules to carry out the provisions of this Act.
(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:—
(a) the form and manner in which and the fee with which an application may be made for registration of a real estate project under sub-section (1) of section 4;
(b) the manner of depositing the amount in the separate account referred to in clause (D) of sub-section (l) of section 4;
(c) the rate of interest payable by the promoter to the allottee and the rate of interest payable by the allottee to the promoter under this Act;
(d) the form and the time within which information under sub-section (3) of section 11 shall be furnished by the promoter;
(e) the particulars which the agreement for sale shall contain and the form of such agreement;
(f) the manner in which the accounts and other documents of the real estate project shall be maintained;
(g) the fee payable for filing appeal before the Appellate Tribunal under section 47;
(h) the amount and manner of depositing compounding fee under section 66;
(i) any other matter which is to be, or may be, prescribed under this Act.
Legal Commentary
Section 84 is the source of all the state-level variation in RERA implementation — it gives state governments broad rule-making powers on every operational matter in the Act. Understanding Section 84 explains why a homebuyer dealing with MahaRERA in Mumbai has a different experience from one dealing with K-RERA in Bengaluru or HRERA in Gurugram.
**What states can prescribe under Section 84:**
*Registration fees (Section 84(2)(a)):* Every state sets its own RERA registration fee — calculated differently (per unit, per square metre, or percentage of project cost). MahaRERA charges ₹10 per sq metre for residential projects; Karnataka charges differently. This variation directly affects builder costs.
*Escrow account operation (Section 84(2)(b)):* The manner of depositing and withdrawing from the 70% escrow account is set by state rules. MahaRERA requires quarterly CA certification for withdrawals; some states allow engineer-only certification.
*Interest rate for compensation (Section 84(2)(c)):* This is the critical rule — the 'SBI MCLR+2%' rate that applies to both Section 18 delay compensation and Section 19(7) allottee payment delay is set by state rules. Most states have chosen SBI MCLR+2%; a few have minor variations.
*Agreement for sale format (Section 84(2)(e)):* The prescribed format for the mandatory agreement under Section 13 is state-specific. MahaRERA's prescribed format is extremely detailed — running to 60+ clauses; some states have simpler formats.
*Compounding fee (Section 84(2)(h)):* The fee for compounding RERA offences under Section 66 is set by state rules — varying from state to state.
**Why this matters for homebuyers:** A buyer purchasing a flat in Maharashtra should understand MahaRERA rules; a buyer in Karnataka should understand KRERA rules. While the central RERA framework is the same, the operational details — fees, timelines, formats, interest rates, and procedures — are all state-specific. Forum for People's Collective Efforts (2021) confirmed that states cannot use this rule-making power to dilute RERA's core consumer protections — Section 84 enables implementation variation, not substantive reduction.
Questions & Answers
Section 84 gives state governments broad power to make rules on operational matters — registration fees, interest rates, agreement formats, escrow procedures, and compounding fees. While the central RERA framework is uniform, these state rules create genuine differences in how RERA operates on the ground in each state.
No. The Supreme Court in Forum for People's Collective Efforts (2021) clarified that Section 84 is an implementation power — states can set operational details but cannot use rules to undermine RERA's core consumer protections (registration mandate, 70% escrow, compensation rights). Rules that contradict or bypass the central Act's protections are unconstitutional.
The rate is set by each state under Section 84(2)(c) — so it can vary. Most states have prescribed SBI MCLR+2% per annum, but there are minor variations. Always check your specific state RERA rules for the applicable interest rate — your state RERA's website will have the current prescribed rate.