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RERA Registration Mandatory for Areas More than 500 Sq m

April 21, 2022

By Nihit Nagpal and Anuj Jhawar

RERA Registration

Section 3 clause (2) sub-clause (a) of the Real Estate (Regulation and Developtment) Act, 2016[1] states that all the real estate projects are required to be registered under the Act where the area of land proposed to be constructed exceeds five hundred square meters or the number of apartments proposed to be constructed exceeds eight. Thus, a real estate project is not required to be registered under the Act when the size of the land where the construction would take place is less than five hundred square metres or the number of apartments which are to be constructed on it is less than eight.

The real estate developers using this loophole, have been avoiding the registration of their projects on the statutory condition that the number of apartments they are constructing are less than eight and for registration under the Act, both the conditions shall be met.

The Rajasthan Real Estate Regulatory Authority keeping in mind this loophole vide its Order dated March 08, 2022 held that under Section 3 clause (2) sub-clause (a) of the Real Estate (Regulation and Developtment) Act, 2016 a project must be registered if in case any of the above two conditions are met.

Conditions required for registration before the Rajasthan Real Estate Regulatory Authority Order Conditions required for registration after the Rajasthan Real Estate Regulatory Authority Order
Both the area of land proposed to be developed shall exceed five hundred square meters and the number of apartments proposed to be built shall exceed eight. Only the area of land proposed to be developed shall exceed five hundred square meters irrespective of the number of apartments proposed to be built on the number of apartments proposed to be built.

The Legal Experts have asked the Delhi Real Estate Regulatory Authority to follow the same guidelines as given by the Rajasthan Real Estate Regulatory Authority to make it mandatory to register the real estate projects which are built on land exceeding five hundred square metres and not considering the number of apartments constructed on it.

Conclusion:

The Legal Experts have urged Delhi Real Estate Regulatory Authority to remove the apartment loophole based on the decision of the Rajasthan Real Estate Regulatory Authority which has made the registration compulsory for all projects which are constructed on land measuring exceeding five hundred square meters, irrespective of the number of apartments built on it.

Karanveer Singh, Associate at S.S. Rana & Co. has assisted in the research of this article.

[1] Section 3 (2) (a) – Prior registration of real estate project with Real Estate Regulatory Authority.

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