As specified in section 3 of the Real Estate (Regulation and Development) Act, 2016 no promoter shall advertise, market, book, sell or offer to sale or invite to purchase in any manner in any project without getting the real estate project with the respective State RERA Authority.
Now the issues arise that if the project is a new project then it is mandatory for the promoter to get it registered before marketing the same. But what if the project is an ongoing project?
To answer this question lets us first understand the difference between an ongoing and new project?
As per the Act Project means the development of the building or a building consisting of apartments, or converting an existing building or a part thereof into apartments, or the development of land into plots or apartment, as the case may be, for the purpose of selling all or some of the said apartments or plots or building, as the case may be, and includes the common areas, the development works, all improvements, and structures thereon.
An ongoing project means that any real estate projects which were started before the commencement of the Act and new project means any real estate project which was started after the implementation of the Act.
The Act grant exemption the RERA Registration Process for the below-categorized projects:-
- Where the area of land is less than or equal to 500 sq meters.
- Where the no. of units to be developed are less than or equal to 8.
- Where the promoter has received the completion certificate before the commencement of the Act.
- Where the promoter is redeveloping or renovating the existing project which does not involve marketing of the project.
But in case the promoter is constructing the project in phases the particular phase which is to be developed after the commencement of the is required to be registered with the Authority.
Recently 2 complaints were filed and adjudicated against Puri Constructions Private Limited and Country Wide Promoters Private Limited where they were marketing and selling the project before getting is registered with the competent Authority.
Now the question arises what if the project does not fall under the registration criteria, well it’s a not an issue even the project is out of the ambit of registration but it is not out of ambit of RERA so you can take advice from any real estate expert or any lawyers and take appropriate legal actions against the bahubali builders.
Disclaimer – The above summary is based on the personal interpretation of the revised regulations, which may differ person to person. Hence, the readers are expected to take expert opinion before placing reliance on this article.