RERA Approvals and Exemptions: Which Projects Don’t Need Registration?

The Real Estate (Regulation and Development) Act, 2016 (RERA) was introduced to bring transparency, accountability, and efficiency into the real estate sector. While the act mandates that most real estate projects must be registered with the respective State RERA Authorities, certain projects and developments are exempt from this requirement. Understanding these exemptions is crucial for homebuyers, developers, and investors.

This blog provides a detailed analysis of RERA exemptions, supported by case laws and recent developments, to clarify which projects do not require RERA registration.

Key Provisions of RERA Registration

Under Section 3 of RERA, all residential and commercial projects that exceed specific criteria must be registered before advertising or selling. However, the act also specifies certain exemptions where registration is not mandatory.

Projects Exempted from RERA Registration

1. Projects Covering Less Than 500 Square Meters or 8 Units

Clause: As per Section 3(2)(a) of RERA, projects with a total land area of less than 500 square meters or those having fewer than 8 apartments are exempt from RERA registration.
Example: If a small builder constructs a project of 6 apartments on a 400 square meter plot, RERA registration is not required.
Case Law: In DDA v. Rajendra Kumar, the Delhi High Court clarified that small-scale developments falling under this limit are beyond RERA’s purview.

2. Renovation or Repair Projects Without Marketing or New Allotment

Clause: Section 3(2)(b) of RERA states that projects solely involving renovation, repair, or re-development, which do not involve new sales or fresh allotments, do not require RERA registration.
Example: If a housing society renovates its existing structure without selling additional units, RERA approval is not necessary.
Recent Development: Maharashtra RERA (MahaRERA) issued guidelines confirming that societies opting for self-redevelopment without inviting new buyers are exempt from registration.

3. Completed Projects with Occupancy Certificate (OC) Issued

Clause: According to Section 3(2)(c), projects that have already received an Occupancy Certificate (OC) or Completion Certificate (CC) from the local authority before RERA came into effect (May 1, 2017) are exempt.
Example: If a developer completed a project and secured an OC before RERA implementation, registration is not required.
Case Law: In Wadhwa Group v. Maharashtra RERA (2020), the Bombay High Court ruled that if an OC is issued before RERA’s applicability, the project remains outside RERA’s jurisdiction.

4. Government-Approved Infrastructure Projects

Clause: Government infrastructure projects such as highways, metro rail projects, and industrial parks, which do not involve private sector buyers, are not covered under RERA.
Example: The Delhi-Mumbai Industrial Corridor (DMIC) does not require RERA registration since it is a government initiative.
Recent Development: Several states have sought clarity on whether public-private partnership (PPP) projects require registration. RERA authorities have ruled that only the private builder’s portion in a PPP model must be registered.

5. Agricultural and Leasehold Properties

Case Law: In UP Awas Vikas Parishad v. State of Uttar Pradesh (2021), the Allahabad High Court ruled that leasehold government properties meant for development by the government itself do not need RERA registration.

Clause: RERA primarily regulates real estate development, so land categorized as agricultural land (without conversion for residential/commercial use) or leasehold properties under government ownership is exempt.

Example: If a builder owns land designated as agricultural and has not obtained approval for residential construction, RERA registration is not required.

Recent Developments and Clarifications

1. Stricter Interpretation of Exemptions by State RERA Authorities

Many State RERA Authorities (like MahaRERA and H-RERA) have clarified that developers cannot misuse the 500 sqm / 8-unit exemption by fragmenting a larger project into multiple smaller phases to avoid registration.

2. RERA Applicability on Redevelopment Projects

While self-redevelopment projects remain exempt, several state governments are considering amendments to bring large-scale redevelopment projects under RERA’s purview, ensuring transparency for homebuyers.

3. Legal Challenges to Exemptions

Homebuyers have increasingly challenged exemptions before RERA tribunals, arguing that unregistered projects leave them without legal protections. Courts have often ruled in favor of stricter regulations, limiting exemptions to their intended scope.

Implications for Homebuyers and Developers

For Homebuyers

Before purchasing property, buyers should verify whether a project qualifies for exemption under RERA.
If a developer claims exemption, buyers must request official documentation (such as an Occupancy Certificate or land-use permit).

For Developers

Misrepresentation to evade registration can lead to legal penalties, including fines and project blacklisting.

Builders must comply with RERA registration norms unless their project genuinely qualifies for an exemption.

While RERA has brought much-needed transparency into the real estate sector, not all projects require registration. Homebuyers must be cautious and verify whether a project is genuinely exempt or if the developer is wrongfully avoiding RERA compliance. Recent case laws and legal rulings indicate that RERA authorities are adopting a stricter approach to ensure homebuyers’ interests are safeguarded.

For developers, ensuring compliance with RERA or seeking valid exemption through appropriate channels is essential to maintaining credibility in the market. With evolving legal interpretations, the landscape of RERA exemptions may continue to change, making it essential for stakeholders to stay updated on regulatory developments.

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Marketing and Advertising Under RERA: What Builders Can and Cannot Do

The Real Estate (Regulation and Development) Act, 2016 (RERA) has significantly transformed the real estate sector in India by enforcing strict guidelines on project transparency, marketing, and advertising. Builders and developers are now required to adhere to specific rules to ensure that buyers receive authentic information and are not misled by false promises. This blog explores the legal framework governing real estate advertising under RERA, key provisions, permissible and prohibited marketing practices, and recent legal developments, including landmark case laws.

Key Provisions of RERA Governing Advertising and Marketing

RERA imposes several obligations on developers when it comes to advertising real estate projects. Some of the key provisions include:

1. Mandatory Registration Before Advertisement (Section 3)

Developers cannot advertise, market, or sell any real estate project without registering it with the respective state RERA authority.
The registration number issued by RERA must be included in all promotional materials, ensuring transparency.

2. Disclosure of Accurate Project Details (Section 11)

Developers must provide complete and truthful information in advertisements, including:
- Carpet area (not super built-up area)
- Project timelines and possession date
- Approvals and legal clearances
- Amenities and specifications
Misleading advertisements are considered a violation of RERA, attracting penalties and legal consequences.

3. Prohibition of False Promises (Section 12)

If a builder fails to deliver what was promised in advertisements, buyers are entitled to:
- A full refund with interest
- Compensation for losses incurred due to false claims

4. Standardized Terms in Agreements (Section 13)

Builders cannot demand more than 10% of the total cost before signing a sale agreement.
The agreement must align with the commitments made in advertisements.

5. Restrictions on Pre-launch Advertising

Pre-launch offers without registration are illegal and subject to heavy penalties.

What Builders Can Do Under RERA

Despite restrictions, builders can still engage in effective marketing within the legal framework. Here’s what they can do:

✅ Advertise RERA-registered projects with correct and verifiable information. ✅ Use digital platforms, newspapers, TV, and hoardings for promotions, provided they include the RERA registration number. ✅ Offer legitimate discounts, promotional schemes, and financing options as long as they are clearly mentioned in the sale agreement. ✅ Highlight project amenities and features, ensuring they align with actual approvals and sanctioned plans. ✅ Conduct promotional events and property exhibitions showcasing RERA-approved projects.

What Builders Cannot Do Under RERA

🚫 False Advertising and Misleading Claims

Builders cannot claim unrealistic amenities, approvals, or possession dates.
Misrepresentation of carpet area, super-built-up area, or pricing is strictly prohibited.

🚫 Advertising Without RERA Registration

Any form of marketing before obtaining RERA registration is illegal.

🚫 Hidden Charges or Undisclosed Costs

All pricing details must be transparent, and additional charges must be disclosed upfront.

🚫 Celebrity Endorsements That Mislead Buyers

Builders cannot use misleading endorsements from celebrities to falsely attract buyers.

🚫 Bait-and-Switch Tactics

Advertising one project and later offering a different property is a punishable offense under RERA.

Landmark Case Laws on Advertising Violations Under RERA

1. Lodha Group Misleading Advertisement Case (Maharashtra RERA, 2019)

Issue: Lodha Group was penalized for advertising a project without mentioning the RERA registration number.
Ruling: Maharashtra RERA imposed a hefty fine and ordered corrective measures.

2. Amrapali Group Fraud Case (Supreme Court, 2019)

Issue: Amrapali falsely advertised possession dates, leading to significant delays.
Ruling: The Supreme Court canceled the developer’s registration and handed over incomplete projects to NBCC for completion.

3. DLF Ltd. v. Competition Commission of India (CCI) (2011, Pre-RERA but Relevant)

Ruling: CCI fined DLF and highlighted the need for regulatory oversight, later addressed by RERA.

Issue: DLF misrepresented project approvals and changed specifications after sale.

Recent Developments in RERA Marketing Regulations

1. Increased Digital Monitoring by RERA Authorities

State RERA bodies are now actively monitoring digital and social media advertisements to prevent misleading claims.

2. Crackdown on Influencer Marketing

Developers using influencers for property promotions must ensure compliance with RERA guidelines.

3. Heavier Penalties for Non-compliance

States like Maharashtra and Karnataka have introduced stricter penalties for misleading advertisements.

4. RERA Compliance in Online Property Portals

Platforms like MagicBricks and 99acres must verify RERA registration before listing projects.

Recent Developments in Force Majeure Under RERA

1. COVID-19 and Blanket Extensions (2020-2021)

Many state RERA authorities granted automatic 6–9 months extensions to developers due to the pandemic.
Maharashtra RERA (MahaRERA) and Haryana RERA (HRERA) extended completion deadlines for ongoing projects.

2. RERA Amendments for Natural Calamities (2023)

Several states have proposed modifications in RERA rules to define Force Majeure events more clearly, ensuring that both developers and homebuyers are protected.

3. Strict Scrutiny on Force Majeure Claims (2024)

Developers must now submit detailed evidence and project progress reports to justify extensions.

RERA authorities have started rejecting Force Majeure claims where delays were due to financial mismanagement rather than external events.

RERA has significantly improved transparency and accountability in real estate marketing. Developers must ensure that all advertisements comply with RERA guidelines to avoid legal consequences and maintain consumer trust. Homebuyers should always verify RERA registration numbers before making any decisions. By adhering to these rules, the real estate industry can move towards a more ethical and buyer-friendly environment.

For homebuyers and investors, the key takeaway is: Always check for RERA registration before making a property purchase!

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