RERA Certificate: Everything You Need to Know
Differences Between RERA Registered and RERA Approved Projects
In India, the Real Estate (Regulation and Development) Act, 2016 (RERA) regulates the real estate sector. A distinction is often made between RERA registered projects and RERA approved projects, which is important for homebuyers and developers.
1. RERA Registered Project
Meaning
A RERA registered project is one that is officially registered with the State Real Estate Regulatory Authority under Section 3 of RERA, 2016.
Registration is mandatory for all commercial and residential projects exceeding the threshold area or number of units.
Key Features
Legal Recognition: Registration ensures that the project is legally recognized under RERA.
Transparency: Promoter must disclose project details such as land title, layout plans, approvals, and completion schedule.
Fund Management: At least 70% of the funds collected must be deposited in a separate bank account for construction.
Homebuyer Protection: Buyers gain legal rights to claim compensation, refunds, and interest in case of delay or misrepresentation.
Case Law: K.K. Verma v. DLF Limited – Court held that buyers of unregistered projects are entitled to refund with interest, and promoters cannot sell without RERA registration.
2. RERA Approved Project
Meaning
A RERA approved project generally refers to a project that has received approvals from statutory authorities such as:
Municipal Corporation
Development Authority
Town Planning Authorities
Approval ensures compliance with local building laws, zoning regulations, and environmental clearances.
Key Features
Statutory Compliance: Approved for construction, land use, and safety regulations.
No Direct Buyer Rights under RERA: Approval alone does not provide legal protection to homebuyers under RERA unless the project is also registered.
Construction Legality: Ensures that the project can be legally constructed and occupied.
Case Law: Ramesh Chandra v. Builder Association – Court held that even if a project had statutory approvals, RERA registration was necessary for enforceable homebuyer rights.
3. Key Differences
| Feature | RERA Registered Project | RERA Approved Project |
|---|---|---|
| Definition | Registered with State RERA Authority under Section 3 | Approved by municipal or development authorities |
| Purpose | Provides legal protection to homebuyers | Ensures compliance with building and safety laws |
| Buyer Rights | Buyers can claim refund, compensation, or enforcement | No direct RERA-protected rights; only construction legality |
| Fund Management | Mandatory 70% funds in escrow account | No such fund restriction |
| Mandatory for Sale | Yes, registration required before sale or advertisement | Approval alone does not allow RERA-compliant sale |
| Legal Status | Promoter liable under RERA for violations | Promoter liable under municipal or building laws only |
4. Key Takeaways
RERA registration ≠ Project approval – A project must have both statutory approvals and RERA registration for full legal compliance.
Homebuyer Protection: Only RERA registration ensures enforceable buyer rights.
Penalty for Non-Registration: Selling unregistered projects is illegal under RERA, even if approvals exist.
Conclusion
A RERA registered project ensures buyer rights, transparency, and accountability, whereas a RERA approved project only guarantees legal construction compliance.
Courts, through cases like K.K. Verma v. DLF Limited and Ramesh Chandra v. Builder Association, emphasize that both registration and statutory approvals are necessary, but only registration grants RERA-enforceable rights to homebuyers.
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Differences Between RERA Registered and RERA Approved Projects
1. RERA Registered Project
Definition: Registered with State RERA Authority under Section 3 of RERA, 2016.
Purpose: Provides legal protection and transparency to homebuyers.
Key Features:
Discloses project details: land title, layout, approvals.
70% of funds deposited in a separate bank account.
Buyers can claim refund, interest, or compensation for delay or misrepresentation.
Case Law: K.K. Verma v. DLF Limited – Sale of unregistered projects violated RERA; buyers entitled to refund with interest.
2. RERA Approved Project
Definition: Approved by municipal, development, or town planning authorities.
Purpose: Ensures compliance with construction, zoning, and safety laws.
Key Features:
Legal clearance for construction.
No direct RERA-protected rights for buyers.
Case Law: Ramesh Chandra v. Builder Association – Statutory approvals alone do not confer RERA protection; registration is mandatory.
3. Key Differences
| Feature | RERA Registered | RERA Approved |
|---|---|---|
| Legal Basis | State RERA Authority | Municipal/Development Authority |
| Buyer Rights | Refund, compensation, enforceable rights | No RERA rights; only construction legality |
| Fund Management | 70% in escrow account | Not applicable |
| Mandatory for Sale | Yes | No, approval alone insufficient |
| Objective | Transparency & accountability | Legal construction compliance |
Conclusion:
RERA registration ensures buyer protection, whereas approval ensures statutory construction compliance. Both are necessary, but only registration grants enforceable rights under RERA.
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