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Tata Capital > Blog > Loan for Home > Everything About The West Bengal HIRA Vs RERA Act

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Everything About The West Bengal HIRA Vs RERA Act

Everything About The West Bengal HIRA Vs RERA Act

The real estate business has become a growing sector in India. Before the RERA Act of 2016, no national regulatory law was overseeing this vast sector. It aimed to advance investments in the real estate market while defending the rights of purchasers. The Act mandated that each State government establish its own RERA policy structure and equivalent administrative panel, with each State government defining how these institutions will operate.

Following the central RERA Act, the West Bengal government has passed its version of the RERA (HIRA). It has been in charge of regulating the West Bengal property market since it was established in 2017. Like the RERA Act, the HIRA Act's primary objectives are to promote and regularise the housing industry, ensure transparent property sales, and safeguard home buyers' interests. HIRA has some differences from RERA. The article describes how HIRA and RERA differ from each other.

What is the RERA Act?

RERA Act stands for Real Estate Development and Regulatory Act. The Indian Parliament passed the Real Estate Act in 2016. The RERA act aims to safeguard home buyers' rights while encouraging property investment. The law became effective on May 1, 2016.


  • Maintain accountability to allotters and protect their interests
  • Increase clarity, uphold justice, and cut down on fraud and delays
  • Establish professionalism and uniformity across India
  • Create information equality between developers and buyers
  • Impose equal duties on investors and builders

Crucial Agreements of the RERA Act:

  • The RERA Act allows state governments to set up multiple regulatory frameworks with the following functions:
  • Real estate project registration, management, and publication on the website for public viewing
  • Protection of the interests of promoters, buyers, and real estate brokers
  • Construction of cheap, sustainable homes
  • Providing guidance to the government and guarantee adherence to its rules
  • A project must register with the regulatory authorities if the plot size is at least 500 square metres or eight flats
  • If there is any default by either party, the promoter and the buyer are responsible for paying interest at specified interest rate
  • Without initially agreeing on a sale, a promoter is not permitted to take an advance payment or application fee of more than 10% of the land, apartment, or building price from a customer

What is the HIRA Act?

The West Bengal Housing Industry Regulation Act, often known as West Bengal HIRA, is a regulatory act established to oversee the real estate transactions of West Bengal. Similar to RERA, the main objective of this act is to safeguard the interests and address the needs of homebuyers. It also promotes a controlled and transparent housing sector trade.


  • To ensure that real estate projects are constructed effectively and transparently
  • To provide appropriate rules for promoting and controlling the housing or real estate industry in West Bengal
  • To implement procedures that might end conflicts in the real estate industry
  • To create policies and procedures for conducting inspections, ensuring compliance, and enforcing fines for any rule violation in the real estate sector

Important Agreements of the HIRA Act

  • All real estate projects with more than eight flats or 500 sq.m must be registered with the Regulatory Authority
  • The promoter must apply to HIRA if a project is still in progress but does not meet the completion certificate requirements
  • Section 3 of the West Bengal Housing Industry Act declares that a real estate project must be registered with the West Bengal Housing Industry Regulatory Authority
  • Purchasers would be able to express their dissatisfaction through a complaints system
  • Real estate developers won't be allowed to transfer unlawful transactions from one project to another

Registration Fees under HIRA and RERA acts in West Bengal

Registration Fee for Promoters

For residential projects with a proposed land
area lesser than 2,000 sq. m.
Rs. 10 per sq. m.
For residential projects with a proposed land
area of more than 2,000 sq. m. but less than
5,000 sq. m.
Rs. 20 per sq. m.
For residential projects, with a proposed land
area of more than 5,000 sq. m.,
Rs. 30 per sq. m.
For commercial projectsRs. 30 per sq. m.

Registration Fee for Real Estate Agents

For individual agentsRs. 25,000
For anybody other than individual agentsRs. 2,50,000

Other Charges for RERA

Filing an appealRs. 1,000
Filing a complaintRs. 1,000

Differences Between RERA and HIRA Act

ParameterRERA ActHIRA Act
 Force majeure events  RERA limits force majeure events to natural disasters that interfere with the development of real estate projects as usual. HIRA refers to natural disasters as "any other situations as may be prescribed".
 Planning area  The planning area has been designated by the government.There is no distinct notion of a planning area.
Power of the regulatory authority  In case of any violations, RERA permits relevant authorities to send the matter suo moto to the Competition Commission of India (CCI).There is no such clause in HIRA.
Factors for adjudging compensation or interest  The regulating body appoints an adjudicator to determine the payment or interest on real estate.The regulating authority makes decisions about compensation under the HIRA. The position of an adjudicating officer does not exist.
Construction materials to be used  The RERA-instituted administration has the power to advise the relevant government on the selection of building materials.The West Bengal Housing Industry Regulatory Authority may suggest using state-provided building supplies.
Garage areaAccording to RERA, a garage is defined as a three-sided covered area with a roof. It doesn't include uncovered parking spaces or open parking lots.HIRA does not impose such limitations on the definition of parking or garage spaces.


From the analysis conducted by the Supreme Court of India, it was discovered that over 95% of clauses in HIRA were similar to those in RERA. West Bengal’s HIRA was inevitably declared “unconstitutional” in May 2021 for the same reason. While both acts tried to introduce equality and fairness in the real estate sector, it can be concluded that they are more or less identical. Follow Tata Capital to stay up to date on the latest real estate news. Additionally, Tata Capital also offers a variety of financing options to prospective home buyers.

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