No registration required for projects on plots under 500 sq yd: Telangana RERA tribunal

Hyderabad: In a landmark ruling, the Telangana RERA Appellate Tribunal has held that projects undertaken on plots measuring less than 500 square yards do not require registration under the Real Estate (Regulation and Development) Act (RERA).

The tribunal clarified that such projects fall outside RERA's regulatory purview, and aggrieved buyers in such cases may seek a remedy before civil courts or consumer commissions.

Exemption under Section 3(2)(a)

The tribunal referred to Section 3(2)(a) of the RERA Act, which exempts projects from mandatory registration if they are developed on land measuring less than 500 square yards or consist of fewer than eight apartments.

The tribunal observed that if either of these conditions is satisfied, the project need not be registered with RERA. The bench ruled that RERA would not have jurisdiction over such projects.

Case background

The case pertained to Sri Vajra Residency in Nallakunta, Hyderabad, developed by RR Construction.

A complainant, Veena Dhari, had approached RERA alleging that the developer failed to resolve construction-related issues as per the agreement and did not provide the Occupancy Certificate.

In July last year, RERA directed the developer to rectify the deficiencies, hand over the Occupancy Certificate to the association, and pay a penalty of Rs 2,82,276.

Both parties subsequently filed appeals before the Appellate Tribunal.

Arguments before the Tribunal

Counsel for the developer argued that the project was constructed on 450 square yards of land, with permission for stilt plus four floors comprising eight flats, and was built accordingly.

It was further submitted that modifications in the second and fourth floors, owned by the landowner, led to the division of units, but the total land extent remained below 500 square yards.

The complainant’s counsel contended that even if the land area was below 500 square yards, the total number of flats was ten, thereby attracting RERA provisions.

Tribunal’s findings

After hearing both sides, the tribunal concluded that since the project was developed on land measuring less than 500 square yards, RERA provisions would not apply, irrespective of the number of units.

Accordingly, it set aside the earlier RERA order. The tribunal advised that buyers in such projects may approach the competent civil court or consumer commission for redressal of their grievances.