The Real Estate (Regulation and Development) Act, 2016 was introduced to bring fairness and transparency to India’s real estate sector. Before the enactment of RERA, the sector faced several issues such as delays in possession, unauthorized construction, lack of accountability, and fraud against homebuyers.
To address these concerns and establish an effective regulatory framework, RERA was enacted. One of the most important aspects of the Act is the mandatory registration of real estate projects, which ensures transparency and protects the interests of allottees and homebuyers. Lets see Registration Of Real Estate Project Under RERA
Important Provisions Related to Registration Of Real Estate Project Under RERA
- Section 3 – Prior registration of a real estate project with the Real Estate Regulatory Authority
- Section 4 – Application for registration of real estate projects
- Section 5 – Grant of registration
- Section 6 – Extension of registration
- Section 7 – Revocation of registration
- Section 8 – Obligation of Authority upon lapse or revocation of registration
- Section 59 – Punishment for non-registration under Section 3
- Section 60 – Penalty for contravention of Section 4
Section 3 – Prior Registration of Real Estate Projects
Section 3 prohibits promoters from advertising, marketing, booking, selling, or offering to sell any real estate project without first registering the project with the Real Estate Regulatory Authority.
This provision ensures that no project is sold before obtaining legal registration from the competent authority. It aims to prevent unlawful practices in the real estate sector and safeguard the rights and interests of homebuyers.
Exceptions to Registration – Section 3(2)
Registration under RERA is not required in the following cases:
- When the project area does not exceed 400 square meters
- When the number of apartments proposed does not exceed 8 units
- When the project has received a completion certificate before the commencement of the Act
- Projects involving renovation, repair, or redevelopment without marketing, selling, or new allotment
Registration of Projects Developed in Phases
Each phase of a real estate project is treated as a separate project under RERA. Therefore, every phase requires separate registration.
Registration of Ongoing Projects
Any project that received a commencement certificate before the enforcement of RERA but did not receive a completion certificate before the commencement of the Act must obtain registration under RERA.
However, projects that already received completion certificates before the Act came into force are exempt from registration.
Section 4 – Application for Registration of Real Estate Projects
Every promoter is required to submit an application for registration in the prescribed form, manner, and within the prescribed time, along with the required fee.
Steps in Registration of a Real Estate Project
Step 1: Application to the Competent Authority
The promoter submits the application along with all required documents and declarations.
Step 2: Scrutiny and Verification
The Authority verifies the application, supporting documents, approvals, and compliance requirements.
Step 3: Grant or Rejection of Registration
After verification, the Authority may either approve or reject the registration application.
Essential Documents Required for Registration
The following documents are generally required:
- Project specifications
- Development work plan
- Sanctioned plan and layout plan
- Location details of project land
- Proforma of allotment letter
- Agreement for sale
- Conveyance deed
- Apartment details
- Garage details
- Real estate agent details
- Contractor details
- Architect details
- Structural engineer details
- Promoter or enterprise details
- Past project details for the last 5 years
- Authenticated approvals
- Commencement certificate
- Phase-wise approvals, if applicable
Important Declarations Required During Registration
The promoter must submit a declaration supported by an affidavit stating that:
- The promoter has legal title to the land
- The land is free from encumbrances
- The project completion timeline is specified
- A separate bank account will be maintained to cover construction costs
Section 5 – Grant of Registration
Upon receiving the application, the Authority must, within 30 days:
- Grant registration; or
- Reject the application
Grant of Registration
If the Authority is satisfied with the application, it grants registration and provides:
- A registration number
- Login credentials for the RERA portal
- Access to create and manage project details online
Rejection of Application
The Authority may reject the application if it does not comply with the Act, rules, or regulations. However, the applicant must be given an opportunity to be heard before rejection.
Deemed Registration
If the Authority neither grants nor rejects the application within the prescribed period, the project is considered deemed registered. The Authority must then provide registration details within seven days.
Section 6 – Extension of Registration
The registration granted under Section 5 may be extended upon an application by the promoter due to:
- Force majeure; or
- Reasonable circumstances
However, the extension cannot exceed one year.
Section 7 – Revocation of Registration
The Authority may revoke registration:
- Upon receiving a complaint
- Suo motu
- On recommendation of the competent authority
Grounds for Revocation
- Non-compliance with the Act, rules, or regulations
- Violation of approval conditions
- Unfair practices or irregularities
- Fraudulent conduct
Effects of Revocation
- Restriction from accessing project details on the RERA website
- Declaration as a defaulter
- Freezing of the project bank account
Section 8 – Obligation of Authority After Revocation or Lapse
After revocation or lapse of registration, the Authority may consult the appropriate government and ensure completion of the remaining development work through:
- The competent authority
- The association of allottees
- Any other suitable mechanism
The association of allottees is given the first right of refusal for completing the project.
Section 59 – Punishment for Non-Registration
Registration under RERA is mandatory. Failure to register a project under Section 3 may attract:
- A penalty up to 10% of the estimated project cost
For continued non-compliance, the promoter may face:
- Imprisonment up to 3 years
- Additional fine up to 10% of project cost
- Or both
Section 60 – Penalty for Contravention of Section 4
If a promoter provides false information or violates Section 4, a penalty up to 5% of the project cost may be imposed.
Important Case Law
Neelkamal Realtors Suburban Pvt. Ltd. v. Union of India
The Bombay High Court upheld the constitutional validity of RERA and clarified that the Act applies to ongoing projects that had not received completion certificates before the commencement of the Act.
Conclusion
Registration of real estate projects under RERA is essential for ensuring accountability, transparency, and consumer protection in the real estate sector. Sections 3 to 8 lay down the complete framework for registration, extension, revocation, and obligations of authorities, while Sections 59 and 60 ensure effective enforcement through penalties and punishments.
Together, these provisions form the foundation of a transparent and regulated real estate system in India.
