Small Apartments Need Not Register with RERA, Rules Tribunal

Hyderabad:The Telangana Real Estate Regulatory Authority (TGRERA) Appellate Tribunal reiterated that building projects on plots smaller than 500 square yards do not need to be registered under the Real Estate (Regulation and Development) Act.

The tribunal was hearing a case involving a complaint from Veena Dhari that the builder, RR Construction, who developed the Sri Vajra Residency in Nallakunta, had not fixed construction defects or provided the occupancy certificate as agreed. TG RERA had earlier ordered the developer to correct the issues and pay a penalty.

However, on appeal, the tribunal said that the project was exempt from RERA registration under Section 3 (2) (a) of the RERA Act since the land area of the developed apartment was under 500 square yards.

The appellate tribunal added that a project can be outside RERA’s scope if it meets either one of two conditions; land parcel must be under 500 square yards or less than eight apartments in the building. If either one of the criteria is met, the project does not have to be under RERA.

The appellate tribunal has set the earlier RERA aside, and said that buyers in such cases should seek resolution in a civil court or consumer forum.