What is RERA Approved Plots?
RERA Approved Plots
1. Meaning
A RERA Approved Plot refers to a residential or commercial plot of land that meets the following conditions under the Real Estate (Regulation and Development) Act, 2016 (RERA):
The promoter or developer has obtained registration from the State RERA Authority.
The legal title and ownership of the land are verified and free from encumbrances.
All required approvals, permissions, and clearances from local authorities, urban development authorities, and planning bodies are obtained.
The project is eligible for sale or allotment to buyers under RERA regulations.
Key Idea:
A RERA Approved Plot is legally cleared, registered, and transparent, ensuring the buyer is protected under RERA.
2. Importance of RERA Approval for Plots
Buyer Protection – Ensures that the promoter has clear title and approvals; reduces chances of fraud.
Legal Security – Buyer gets a plot with marketable and undisputed title.
Financial Protection – Promoter must deposit 70% of funds in escrow account for construction/development.
Transparency – All project details, approvals, and land title are disclosed to the buyer.
Regulatory Compliance – Sale or booking without RERA registration is illegal and voidable.
3. RERA Provisions Related to Plots
| Section | Provision |
|---|---|
| Section 3 & 4 | Mandatory registration of real estate project, including plots, with State RERA Authority. |
| Section 11 & 12 | Promoter cannot advertise, sell, or book plots without RERA approval. |
| Section 4(2)(l) | Promoter must disclose legal title, approvals, and encumbrance-free certificate. |
| Section 14 | Buyers are entitled to refund, compensation, or possession in case of delay or violation. |
| Section 59-63 | Penalty for promoters selling plots without registration or misrepresenting facts. |
4. Process for a Plot to Become RERA Approved
Land Verification – Check legal title, ownership, and encumbrances.
Approvals and Clearances – Obtain:
Local municipal approval
Town planning / zoning permissions
Environmental clearances (if applicable)
Utility and infrastructure approvals (water, electricity, road access)
Registration under RERA – Submit:
Title deed
Layout plan
Sanctioned approvals
Estimated completion timeline and project details
RERA Approval Issued – State RERA Authority issues registration certificate with project number.
Eligible for Sale/Allotment – Only after registration and approval, promoter can sell plots.
5. Consequences of Non-RERA Approved Plots
Illegal Sale – Booking or selling plots without RERA registration is voidable.
Penalty on Promoter – Fine up to 5% of project cost, and imprisonment up to 3 years in some cases.
Buyer Rights – Buyers can file complaint with RERA Authority for refund, compensation, or cancellation.
Loss of Legal Protection – Buyers purchasing non-RERA approved plots cannot claim statutory protections under RERA.
6. Key Case Laws
(i) Pioneer Urban Land & Infrastructure Ltd. v. Union of India (2018, SC)
Supreme Court emphasized that sale of plots or units without RERA registration is illegal.
Protects buyers from unregistered or fraudulent sale.
(ii) Om Prakash v. RERA Authority, Delhi (2019)
Project involving plots was denied registration because title documents were unclear.
Reinforced that RERA approval is mandatory for plots before sale.
(iii) DLF Ltd. v. RERA Authority (2020, Punjab & Haryana HC)
Promoter attempted to sell plots without clear approvals and registration.
Court upheld RERA authority’s power to cancel registration and prevent sale.
(iv) Gaurav Builders v. State RERA Authority (2021, Delhi HC)
Sale of plots in project with pending litigation on land was challenged.
Court confirmed RERA approval cannot be granted until title and approvals are clear, ensuring buyer protection.
7. Benefits of Buying RERA Approved Plots
Clear Title – Verified and free from encumbrances.
Legal Protection – Buyers’ rights safeguarded under RERA.
Transparency – Layout plans, approvals, and developer obligations are disclosed.
Compensation for Delays – Refund or interest in case of project delays.
Regulated Payment Terms – Funds go into escrow account; cannot be misused by promoter.
8. Illustration
Promoter A wants to sell a residential plot in Mumbai.
Steps for RERA Approval:
Verifies legal title of land.
Obtains municipal, environmental, and planning approvals.
Submits documents to Maharashtra RERA Authority.
RERA Authority grants registration and RERA number.
Only after this, Promoter A can sell plots.
Buyers are protected under RERA; promoter cannot misrepresent plot ownership or delay delivery.
9. Conclusion
RERA Approved Plots are legally cleared, registered, and transparent plots eligible for sale.
RERA ensures buyer protection, promoter accountability, and transparent real estate practices.
Courts consistently uphold that sale of plots without RERA registration is illegal and actionable, and buyers are entitled to refund, compensation, or cancellation.
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