Is RERA Applicable to Old Projects?

06 Aug 2025 --
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📌 Applicability of RERA to Old Projects

The Real Estate (Regulation and Development) Act, 2016 (RERA) regulates real estate projects to ensure transparency, timely delivery, and consumer protection. A common question arises: Does RERA apply to projects launched before its commencement (1 May 2017)?

🔹 Legal Framework

Section 3 of RERA – Registration of Real Estate Projects:

Every promoter must register the project with the State RERA authority before offering it for sale.

Registration is mandatory for new and ongoing projects that are not yet completed.

Section 2(f) of RERA – “Real estate project” includes:

Plots, apartments, or buildings where development has been undertaken by the promoter.

Projects launched before RERA but not yet completed fall under the definition.

RERA Rules (State-wise) – Most states clarified that projects under construction but unsold at the commencement of RERA must be registered.

🔹 Key Considerations for Old Projects

Completion Status Matters

Projects already completed and fully delivered before 1 May 2017 → RERA does not apply.

Projects under construction or with unsold units → RERA applies.

Registration Requirement

Even if a project was launched before RERA, the promoter must register the project with State RERA for ongoing sales.

Rights and Liabilities under RERA

Promoters must comply with Section 4 (disclosure of project details).

Homebuyers can file complaints for delayed possession, quality issues, or misrepresentation.

Interest/penalty provisions under Section 18 apply to old projects under RERA.

🔹 Case Laws / Rulings

1. MahaRERA Clarification – Old Projects

Maharashtra RERA clarified that projects launched before 1 May 2017 but ongoing must be registered within 3 months of RERA’s commencement.

Reasoning: To protect homebuyers of ongoing projects and bring transparency.

2. Kolte Patil Developers v. RERA & Homebuyers (Maharashtra RERA, 2018)

Facts: Project launched in 2015; possession delayed.

Held: RERA applies to ongoing projects; promoter must pay compensation to homebuyers.

3. Lodha Group Case – Mumbai RERA (2017)

Facts: Lodha project launched in 2016; delayed possession.

Held: RERA provisions on compensation, interest, and disclosure were applicable even though the project was pre-RERA launch.

4. Punjab RERA Advisory – Pre-2017 Projects

Clarified: Any unsold unit in an old project falls under RERA.

Promoter cannot bypass registration citing pre-RERA launch.

🔹 Practical Implications

For Promoters

Must register old projects with State RERA if units are still on sale.

Must update project information on RERA portal (layout, carpet area, amenities, approvals).

Non-registration attracts penalty under Section 59 of RERA.

For Homebuyers

Can approach RERA authority for grievances in old projects:

Delayed possession

Structural defects or poor quality

Misrepresentation in agreement

Exceptions

Fully completed and delivered projects before RERA → no RERA jurisdiction.

Projects with no ongoing sales → generally outside RERA.

🔹 Summary Table

Feature	Old Project Completed Pre-RERA	Old Project Ongoing / Units Unsold
Applicability of RERA	No	Yes
Registration	Not required	Mandatory
Homebuyer Rights	Normal contractual remedies	Full RERA rights (Section 18, 31, 37)
Penalty on Promoter	NA	Yes, under Sections 59-60
Compensation for Delay	Under Contract / Consumer Law	Under RERA Sections 18 & 19