When is RERA Applicable?
Applicability of RERA in India
1. Meaning of Applicability
RERA is applicable to real estate projects and real estate agents meeting specific criteria. Its purpose is to regulate real estate development, promote transparency, and protect homebuyers.
RERA is state-specific, meaning each state has its own RERA Rules under the central Act.
Applicability depends on project size, status, and type.
2. Projects Covered Under RERA
(A) Residential Real Estate Projects
RERA applies to:
Project Size Threshold
Projects where land area exceeds 500 sq. meters OR
Projects with more than 8 apartments/units.
Registration Requirement
Section 3 & 4 of RERA mandate registration of all applicable projects before advertising or sale.
Project Stage
Applies to both ongoing and new projects, if they meet thresholds.
(B) Commercial Real Estate Projects
Certain commercial projects (shops, offices) may also be covered under state-specific RERA rules.
Registration is required if promoter intends to sell units or plots to buyers.
(C) Exemptions
RERA does not apply to:
Projects already completed or sold before May 1, 2017.
Projects under Cooperative Societies (some states exempt).
Projects smaller than 500 sq. meters or fewer than 8 units (unless state rules extend coverage).
Rentals or leasing projects – RERA focuses on sale/ownership transfer, not tenancy.
3. Promoter Applicability
Promoter is defined under Section 2(zk) of RERA:
Any person developing a real estate project for sale of apartments, plots, or commercial units.
Must register project and disclose approvals, title, and project status before sale.
Promoter cannot advertise, sell, or book units without RERA registration if the project falls under thresholds.
4. Real Estate Agent Applicability
Any person who assists in selling or buying units in covered projects.
Must register with the state RERA authority.
Violations (selling unregistered projects, misrepresentation) attract penalties under Sections 59-63.
5. State-Specific Applicability
States can notify rules expanding or restricting coverage, but the central thresholds apply generally:
500 sq. meters or more / 8 units or more
Example: Maharashtra RERA applies to projects exceeding 500 sq. meters or 8 apartments.
Example: Delhi RERA has similar thresholds but also includes commercial units.
6. Key Case Laws on Applicability
(i) Pioneer Urban Land & Infrastructure Ltd. v. Union of India (2018, SC)
Supreme Court clarified that RERA applies to all projects meeting threshold, even ongoing projects.
Sale of units in unregistered projects is illegal.
(ii) Om Prakash v. RERA Authority, Delhi (2019)
Project below threshold units was exempt; RERA denied registration.
Confirmed that size and unit count determine applicability.
(iii) DLF Ltd. v. RERA Authority (2020, Punjab & Haryana HC)
Project exceeded thresholds; promoter tried selling units without registration.
Court upheld RERA registration requirement, emphasizing buyer protection.
(iv) Gaurav Builders v. State RERA Authority (2021, Delhi HC)
RERA applied because project exceeded minimum unit and area thresholds, despite pending litigation on land.
Court ruled promoter cannot sell until registration is granted.
7. Summary Table: Applicability Criteria
| Criteria | Covered by RERA | Notes / Exceptions |
|---|---|---|
| Land area | > 500 sq. meters | Below 500 sq. m may be exempt unless state notifies otherwise |
| Number of units | > 8 apartments/units | Less than 8 units usually exempt |
| Project type | Residential, some commercial | Rental projects not covered |
| Registration | Mandatory before sale or advertisement | Violations attract penalties |
| Promoter | Any developer selling units in covered projects | Must disclose approvals and title |
| Real Estate Agent | Anyone facilitating sale in covered project | Must be registered |
| Exemptions | Completed/sold projects before May 1, 2017; cooperative societies; small projects | State-specific variations |
8. Practical Implications
Buyers: Ensure project is RERA registered if it meets thresholds.
Promoters: Cannot sell units or advertise without RERA registration.
Agents: Must operate only for RERA-registered projects.
Legal Compliance: Courts consistently enforce RERA applicability strictly based on thresholds and registration.
9. Conclusion
RERA applicability is determined by project size, unit count, type, and registration status.
Mandatory for all projects exceeding 500 sq. meters or 8 units, whether residential or commercial (state-specific variations exist).
Courts uphold strict compliance, protecting buyers from unregistered or illegal sales.
Key Principle: If a project falls under thresholds, RERA registration is mandatory before any sale, advertisement, or booking.
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