Launch and booking
Pre-launch
Selling or taking bookings before formal launch. Under RERA, marketing or booking before project registration is prohibited.
Pre-launch sales used to be common: early buyers got a low price and the developer raised early funds. Section 3 of the RERA Act now prohibits a promoter from advertising, marketing, booking, selling or offering for sale any unit in a project that requires registration until it is registered.
Some developers still collect interest before registration through EOIs. State authorities have treated many such schemes as violations. Take legal advice before running any pre-registration activity.
Watch outSection 59 allows a penalty of up to 10% of the estimated project cost for not registering a project that requires registration.