The real estate sector has been one of the top-most contributors to the country’s Gross Domestic Product (GDP) and employment creation. Surprisingly, inspite of being such an important part of the economy, the real estate sector was unregulated for numerous years. In order to regulate the aforesaid unorganized sector, the Indian Parliament passed a legislation called as The Real Estate (Regulation and Development) Act, 2016 (“RERA”) which was made effective on May 1, 2016.
RERA is a central legislation though land is a state subject on which only the state government is empowered to frame laws. Hence, RERA being a central legislation, is adopted by each state government in India in its respective state assembly and has also framed its respective rules and regulations to implement RERA in its territory.
Eligibility of RERA Registration
The following real estate projects are not required to be registered:
- Where the area of the land does not exceed 500 square meters or number of apartments does not exceed 8 (eight);
- Where the Promoter has received completion certificate for a real estate project prior to commencement of RERA; and
- Where the work involved is limited only to renovation or repair or re-development and does not involve marketing, advertising, selling or new allotment of any apartment, plot or building.