Is RERA Approval Mandatory for Plots?
Is RERA Approval Mandatory for Plots?
1. Meaning
RERA (Real Estate Regulation and Development Act, 2016) mandates that any real estate project, including plots, that meets specified thresholds must be registered with the State RERA Authority before being sold, advertised, or booked.
RERA Approved Plot is a plot in a project that has:
Verified legal title
All required approvals from authorities
Registration under RERA
Key Principle: No sale or advertisement of plots in covered projects without RERA approval is permitted.
2. Legal Framework
Section 3 & 4, RERA Act, 2016
Requires registration of every real estate project before sale/booking.
Promoter must submit:
Legal title documents
Approvals and sanctions
Layout plan
Estimated completion schedule
Section 11 & 12
No promoter can advertise or sell units or plots without RERA registration.
Section 59-63
Penalties for promoter if plots are sold without registration.
Section 2(zk)
Defines “promoter” – includes anyone developing plots for sale.
3. Applicability to Plots
A. Mandatory Registration
RERA approval is mandatory if the project involves:
Land area > 500 sq. meters OR
More than 8 plots/units
Smaller projects may be exempt unless state rules extend coverage.
B. Exemptions
Projects already completed or sold before May 1, 2017.
Projects under cooperative housing societies (state-specific).
Projects below threshold size.
4. Importance of RERA Approval for Plots
Buyer Protection – Ensures clear title and lawful sale.
Transparency – Full disclosure of:
Approvals from authorities
Land title and encumbrances
Layout plans and development schedule
Legal Compliance – Sale of plots without RERA registration is illegal and voidable.
Financial Security – Promoter must deposit funds in escrow account, protecting buyers’ payments.
5. Judicial Interpretations
(i) Pioneer Urban Land & Infrastructure Ltd. v. Union of India (2018, SC)
SC held that sale of units or plots without RERA registration is illegal.
RERA applies to all projects exceeding the threshold, whether ongoing or new.
(ii) Om Prakash v. RERA Authority, Delhi (2019)
Project involving plots was denied registration because title documents were unclear.
Court reinforced that RERA approval is mandatory before selling plots.
(iii) DLF Ltd. v. RERA Authority (2020, Punjab & Haryana HC)
Promoter sold plots without approvals or registration.
Court confirmed RERA authority can cancel project registration and prevent sale.
(iv) Gaurav Builders v. State RERA Authority (2021, Delhi HC)
Court ruled that plots in projects with pending land disputes cannot be registered under RERA.
Only after clear legal title and approvals can plots get RERA approval.
6. Practical Illustration
Promoter A wants to sell 20 plots in Delhi:
Land title verified and encumbrance-free
Municipal and town planning approvals obtained
Layout plan submitted
Registered with Delhi RERA Authority
Only after RERA registration can Promoter A sell plots legally.
If sold without registration:
Buyers can approach RERA for refund/compensation
Promoter may face penalty under Sections 59-63
7. Key Principles
RERA approval is mandatory for plots in projects exceeding thresholds.
No sale or advertisement without registration – violation is illegal.
Registration ensures transparency, buyer protection, and promoter accountability.
Judicial support – Courts consistently enforce RERA registration requirement for plots.
8. Conclusion
Yes, RERA approval is mandatory for plots in projects exceeding 500 sq. meters or 8 plots.
Sale of unregistered plots is illegal, and buyers are entitled to refund, compensation, and legal recourse.
RERA ensures legal, transparent, and secure real estate transactions, protecting both buyers and the integrity of the real estate market.
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