The Rajasthan Real Estate Regulatory Authority (RERA) has initiated a landmark move to streamline the recovery process from defaulting real estate developers by partnering with MSTC Ltd, a public sector enterprise under the Ministry of Steel. In a decisive step, RERA will now conduct e-auctions of attached properties using MSTC’s proven digital platform, widely used across government departments for transparent and efficient public procurement.
This significant decision was unanimously approved during the Authority’s 21st meeting held on May 15, 2025, marking a major leap in RERA’s enforcement mechanisms. The auctions will be carried out in strict accordance with the Rajasthan Transparency in Public Procurement (RTPP) Rules, ensuring transparency and accountability throughout the process.
Direct Recovery through e-Auction Mechanism
Traditionally, property recovery under RERA involved a time-consuming process of sending recovery certificates to the district collector, treating them as arrears of land revenue. Advocate Mitesh Rathore explained that this older method was lengthy and cumbersome. However, with MSTC’s integration, Rajasthan RERA can now directly execute recoveries via e-auctions, vastly improving efficiency.
This action is backed by Section 40 of the Real Estate (Regulation and Development) Act, 2016, which empowers RERA and its adjudicating officer to recover penalties, interest, or compensation in the same manner as civil court decrees or land revenue arrears. The process is further supported by Rules 25 and 26 of the Rajasthan RERA Rules, 2017, along with the RERA Regulations, 2024, which detail execution procedures for authority orders.
The authority emphasized that in cases of persistent non-compliance by developers, property attachment and auction have emerged as key enforcement tools. As part of this initiative, RERA has also finalized the auction modalities, payment gateway setup, service charge framework, and system integration with the RERA 2.0 portal to ensure a seamless execution of the e-auctions.
The Registrar of RERA has been instructed to take the necessary steps to operationalize the auction mechanism in coordination with MSTC Ltd, paving the way for quicker and more effective recoveries.
Revised Fee Structure from June 1, 2025
Alongside its enforcement push, RERA has also revised its fee structure, which will be effective from June 1, 2025:
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Farmhouse schemes: Standard registration fee reduced to ₹3 per sq metre of the total project area, offering a lower cost than other project types.
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Residential, institutional, and industrial projects: Standard and registration fees will remain at ₹5 per sq metre.
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Commercial and mixed-use projects: Higher fees applicable, with a standard fee of ₹10 per sq metre and registration fee of ₹5 per sq metre.
This fee adjustment aims to rationalize the cost burden on developers, especially those undertaking farmhouse projects, while keeping higher-value commercial projects appropriately taxed.
The twin moves — adopting e-auction as a recovery tool and revising the fee structure — reflect Rajasthan RERA’s evolving approach toward ensuring accountability, compliance, and efficiency in the real estate sector.
